Global Stock Selloff Ebbs as Trump to Meet US CEOs

(Bloomberg) — Global stocks steadied from a selloff and US stock futures signaled a Wall Street bounce, as Bloomberg News reported President Donald Trump will meet with top business executives later in the day.

Contracts for the Nasdaq 100 rose 0.5% after the index’s deepest slump since 2022, while those on the S&P 500 climbed 0.4%. Tesla Inc. shares rose in premarket trading after Monday’s 15% slide while other tech names including Nvidia Corp. also edged higher. In Europe, the Stoxx 600 index was steady while earlier, Asian shares bounced off an intraday five-week low.

There was relief for other risk assets too, as Bitcoin stabilized after a five-day selloff and oil prices notched a small bounce from Monday’s drop. However, concerns over the once unstoppable resilience of the US economy continue to support Treasury markets, with 10-year yields edging lower again on Tuesday. The dollar index slid 0.3%.

Trump’s meeting with the Washington-based Business Roundtable will include chief executives from around the country, including the bosses of Wall Street lenders, Bloomberg reported, quoting people familiar with the matter. Given the increasingly uncertain outlook for the US economy and trade war concerns, investors will watch for any signals from Trump on the likelihood of tariff-policy shifts or support for equity markets.

“What is being questioned in the market is US exceptionalism,” said Aneeka Gupta, head of macroeconomic research at Wisdom Tree UK Ltd. “When Trump came back into the White House, the focus on was on the positive impact of his policies, but now the market is really drilling down into the negatives.”

The selloff in US stocks, particularly in the tech sector, has been accompanied by shift in investor perception on Europe and China, especially after Germany’s pledge to embark on large-scale defense spending.

“The news flow from the US economy is likely to undershoot the rest of the world in coming months,” Citigroup Inc. strategists wrote. They downgraded their view on US stocks to neutral from overweight, ditching a position they had held since October 2023. Earlier, HSBC strategists also cut their view on US stocks, raising their European equity rating instead.

Meanwhile, the latest company results have also hinted at slowing profits earnings. Delta Air Lines Inc. shares tumbled as much as 11% in US premarket trading after a a deep cut to profit expectations. The news hit peers United Airlines Holdings Inc. and American Airlines Group Inc., and also weighed on European airlines. Sofware firm Oracle Corp. slipped after its results missed estimates.

In currency markets, the euro was the biggest gainer, strengthening 0.6% as German lawmakers are expected to reach an agreement over additional spending. Gold prices slipped, but held above $2,900 an ounce.

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