US stocks set for gains with consumers in focus: Markets Wrap

by Andre Janse van Vuuren and Kwaku Gyasi 

US stocks are poised to resume their rally at record highs as traders bet that data on Friday will show signs of strain on US consumers, bolstering the case for interest rate cuts. 

S&P 500 futures edged higher 0.1% after a flat session, following back-to-back record closes earlier in the week. Intel Corp. rose more than 2.5% in premarket trading on a report that the Trump administration is in talks to buy a stake in the struggling chipmaker. Applied Materials Inc. slumped after a weaker-than-expected outlook.  

US Treasuries edged higher across the curve, with yields on the policy-sensitive two-year note falling one basis point to 3.72%. The dollar weakened 0.3%. 

Economists expect government data on Friday to show a solid increase in July retail sales, driven by incentives that boosted vehicle purchases and a surge in online spending during Amazon’s Prime Day event. However, underlying fundamentals are likely soft, with many consumers avoiding goods marked up by tariffs, according to Bloomberg Intelligence. 

“In this market bad news are good news,” said Anthi Tsouvali, a multi-asset strategist at UBS Global Wealth Management. “I think investors are positioned to expect that the number will probably be lower than consensus.” 

In Europe, the Stoxx 600 advanced 0.2% toward the highest level since March amid guarded hopes that Friday’s US-Russia summit could be an initial step toward brokering a peace deal in Ukraine and thawing relations.  

While a deal to end the war in Ukraine is likely still far away, “we do expect some progress in today’s meeting and a path set for further discussions,” said Mohit Kumar, chief European strategist at Jefferies International. “If we move toward a peace deal, it would be positive for the European markets.” 

In Asia, shares in Hong Kong weakened 1% after data showed China’s economy slowed in July with factory activity and retail sales disappointing, suggesting the US trade war is starting to weigh on the world’s No. 2 economy. Japanese shares gained 1.7% after the country’s economy expanded faster than expected last quarter.  

Corporate News: 

• The Trump administration is in talks with Intel Corp. to have the US government take a stake in the beleaguered chipmaker, according to people familiar with the plan. 
• Applied Materials Inc., the largest American producer of chipmaking gear, plunged in late trading after giving a disappointing sales and profit forecast. 
• Warren Buffett’s Berkshire Hathaway Inc. bought shares of UnitedHealth Group Inc. in the second quarter, sending the health insurer’s stock soaring in post-market trading. 
• Pandora A/S shares slumped the most since April after the Danish jewelry maker warned of weak demand in Europe and uncertainty over tariffs. 

Some of the main moves in markets:  

Stocks 

• The Stoxx Europe 600 rose 0.2% as of 10:14 a.m. London time 
• S&P 500 futures rose 0.1% 
• Nasdaq 100 futures fell 0.2% 
• Futures on the Dow Jones Industrial Average rose 0.7% 
• The MSCI Asia Pacific Index rose 0.7% 
• The MSCI Emerging Markets Index was little changed 

Currencies 

• The Bloomberg Dollar Spot Index fell 0.3% 
• The euro rose 0.3% to $1.1687 
• The Japanese yen rose 0.6% to 146.80 per dollar 
• The offshore yuan was little changed at 7.1837 per dollar 
• The British pound rose 0.1% to $1.3552 

Cryptocurrencies 

• Bitcoin rose 0.9% to $119,033.2 
• Ether rose 2.6% to $4,654.67 

Bonds 

• The yield on 10-year Treasuries was little changed at 4.28% 
• Germany’s 10-year yield advanced two basis points to 2.74% 
• Britain’s 10-year yield advanced one basis point to 4.65% 

Commodities 

• Brent crude fell 0.9% to $66.25 a barrel 
• Spot gold rose 0.1% to $3,340.04 an ounce 

This story was produced with the assistance of Bloomberg Automation. 

© 2025 Bloomberg L.P.