Market Commentary: Tuesday 17th February

US equity-index futures fell as trading resumed after the Presidents’ Day holiday, signalling that the recent multiweek decline in technology stocks may continue.

S&P 500 futures dropped 0.4% and Nasdaq 100 futures slid 0.7%, with the tech-heavy index down about 2% for the year after three straight weekly losses. European markets were also poised for a weaker open, while Asian equities edged 0.1% lower in thin trading due to Lunar New Year closures across several major markets. Treasuries gained, pushing the 10-year yield down to 4.02%, while the yen strengthened against the dollar. Precious metals declined, and oil held onto gains amid rising geopolitical tensions.

Investor sentiment remains fragile amid a lack of fresh catalysts and ongoing geopolitical concerns. Iran’s naval drills near a key shipping route have heightened tensions ahead of renewed nuclear talks with the US, as President Donald Trump has threatened military action if Tehran does not curb its nuclear program in exchange for sanctions relief. At the same time, traders are reassessing expectations for Federal Reserve rate cuts following recent inflation data.

The UK Claimant Count Change was released a short while ago, leading to a sell-off in GBP. CAD CPI is the main upcoming data release of the day.

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