European stocks set for weekly gain, dollar near 19-month high on rate hike bets
SPY•European stocks edged lower but remained on track for a weekly gain of more than 2%, while the dollar neared a 19-month high as traders raised bets on a possible 50-basis-point Federal Reserve rate hike next month.
1. European stocks edge lower
The STOXX 600 was down about 0.1% on Friday but remained set for a weekly gain of more than 2%, after reaching a record high in the previous session. London's FTSE 100 rose 0.1%, while Germany's DAX fell 0.2%; Wall Street futures were mixed.
2. Dollar and yields rise
The dollar index stood at 103.27 after earlier reaching its highest level since April 2025. Traders saw a 12% chance of a 50-basis-point Fed hike in December, up from zero a week earlier, while the US two-year Treasury yield reached a one-month high.
3. Markets weigh Nvidia news
Investors largely shrugged off Nvidia CEO Jensen Huang's resignation, with the company's shares up 2.6% in premarket trading after losing about 11% from Monday through Thursday. Oil prices were headed for a second weekly decline; Brent rose 0.33% to $96.17 a barrel and US crude eased 0.2% to $88.57.
