European stocks fall, oil drops as markets eye big tech and Iran talks
European equities slipped and oil prices extended losses as traders weighed tech sector weakness and awaited US-Iran nuclear talks, with S&P 500 and Nasdaq futures pointing to a cautious Wall Street open.
European stocks declined on Friday and oil prices extended their slide as market participants weighed a cautious mood from the tech sector and awaited further developments in US-Iran nuclear talks.
Equity markets in Europe traded lower, tracking a mixed session where nervousness crept in after the previous day's selloff in big tech. S&P 500 futures fell 0.5% and Nasdaq futures dropped 1.2%, signaling a risk-off tone ahead of the Wall Street open. The tech weakness follows a volatile week for AI-related stocks, with investors reassessing valuations after a sharp push and pull. Meanwhile, oil prices continued to retreat, with WTI crude falling 3% to $69.70, as traders remained calm on the US-Iran situation despite ongoing technical talks on Iran's nuclear program. The drop in oil reflects a lack of immediate supply disruption fears, but the market remains watchful for any escalation.
For currency and FX traders, the risk-off mood is a key driver. A decline in equities typically supports safe-haven currencies like the Japanese yen and Swiss franc, while commodity-linked currencies such as the Canadian dollar and Norwegian krone may face headwinds from lower oil prices. The US dollar index could see mixed flows, as risk aversion boosts the greenback's safe-haven appeal but lower yields may cap gains. Traders can track these moves on NowPrice's live FX dashboard to monitor real-time shifts in major pairs as sentiment evolves.
Looking ahead, the focus remains on Wall Street's reaction to tech weakness and any fresh headlines from the US-Iran talks. A sustained selloff in US equities could reinforce risk-off positioning across FX markets, while a recovery might ease pressure on risk-sensitive currencies. Key data releases next week include US ISM manufacturing and eurozone inflation figures, which will provide further clues on central bank policy paths. Traders should also watch for any comments from Federal Reserve officials that could influence rate expectations.