Before the bell: rotation out of AI rolls on ahead of BoE
SPY•European shares were set for a firmer open ahead of the Bank of England decision, while Nasdaq futures fell 1% as investors continued rotating away from AI-linked stocks. Brent crude fell for a fourth day.
1. Markets reposition ahead of BoE
Euro STOXX 50 futures rose 0.3% and FTSE 100 futures gained 1.2% ahead of the Bank of England decision. Lower oil prices and falling bond yields supported European shares.
2. AI shares under pressure
Investors sold AI-linked stocks in Asia, including Samsung Electronics and SK Hynix, while Alibaba and Tencent rose more than 6%. ASML and STMicro were each down around 3% in premarket trading, and Nasdaq futures fell 1%; banks and more cyclical, China-exposed stocks were in favour.
3. Oil and company news
Brent crude fell for a fourth day as investors weighed whether the Democrats’ congressional victory could reduce the risk of further escalation of the war on Iran. Rheinmetall fell 8% after cutting its 2026 sales forecast for the second time in three months. AstraZeneca reportedly made an offer of about $10 billion to acquire Rhythm Pharmaceuticals.
