Nasdaq Futures, Tech Stocks Slide as U.S.-Canada Trade War in Focus

By Dow Jones Newswires StaffNasdaq futures led U.S. equity indexes lower in early European trade, as global tech stocks weakened following equity and bond issues from the sector in Asia.With Alibaba planning to raise $10.2 billion for AI investment via a share placement and Chinese memory chipmaker YMTC on track for a $4.9 billion Shanghai IPO, markets are worried about equity dilution from massive share supply hitting the market. Asian and European AI-linked stocks fell in response, while Nasdaq futures traded slightly lower.Meanwhile, investors are digesting the implications of the collapse in trade talks between the U.S. and Canada. Wine, hockey sticks and cement are among the Canadian goods facing fresh 50% tariffs.Pressure on longer-dated U.S. Treasurys in the early European morning eased slightly as oil fell from its highs at the end of last week.Bitcoin pulled back from its Friday highs over the weekend, while the dollar climbed slightly. Precious metals extended their recent rally.Later Monday, Treasury Secretary Scott Bessent will hold a press conference detailing planned U.S. economic sanctions on Iran, while the Federal Reserve Bank of Chicago will issue U.S. activity data for July.For the week ahead, investors watch for Nvidia earnings and U.S. inflation data Wednesday, ahead of Fed Chair Kevin Warsh's appearance at the Jackson Hole symposium Friday.Oil prices fell more than 1.5% as investors await details on expected U.S. sanctions on Iran. "The move could further tighten global oil supplies, with Iranian exports already disrupted and offers to China reduced," analysts at Saxo Bank said. In early European trading, Brent crude was down 1.7% to $91.01 a barrel, while WTI futures slid 2.1% to $85.20 a barrel. Both benchmarks closed last week more than 6% higher as talks to reopen Hormuz hit a stalemate and President Trump announced plans to tighten the economic squeeze on Tehran.In the U.S., futures for the Dow Jones Industrial Average were flat, while S&P 500 futures dropped 0.2%. Nasdaq futures fell 0.6% as chip stocks dragged, with Sandisk and Marvell Technology falling 5% and 4% premarket, respectively.As well as Alibaba and YMTC equity issues, Tokyo-listed SoftBank said it would issue a record volume of retail bonds to continue its own AI push. The fundraising prompted a sharp decline in tech stocks across Asia, dragging the Nikkei down 0.5%, while Hong Kong's Hang Seng slipped 1.9%. South Korea's Kospi fell 3.1%, as Samsung Electronics shares slumped close to 9% after its shareholder return plans disappointed.European stock indexes were largely lower at the open. AI-related shares underperformed the broader market, as the Europe-wide Stoxx 600 slipped 0.15%. Amsterdam's semiconductor-heavy AEX falls 0.2%, with ASML dropping 1% and BE Semiconductor losing 1.1%. In Paris, the CAC 40 falls 0.2% as autos faltered. Jeep owner Stellantis was down 3% following a breakdown in U.S. and Canada trade negotiations. In Germany, the DAX was 0.2% lower, weighed down by Siemens Energy falling 1.4% and Volkswagen slipping 1.4%. London's FTSE 100 was flat as gains for miners and real estate companies countered a slip in healthcare, with AstraZeneca down 1%. Italy's FTSE MIB fell 0.15%, while the Spanish IBEX 35 edged up 0.1%.The dollar edged higher as U.S.-Iran tensions persist. Investors watch for Bessent's speech on Iran sanctions. "The dollar's reaction is likely to depend on the scope and severity of the sanctions," Commerzbank's Volkmar Baur says in a note. The dollar could fall if several countries with economic ties to Iran are affected by sanctions, he says. The DXY dollar index rose 0.1% to 98.871, having reached a three-month low of 98.557 Thursday.U.S. Treasury yields declined in Asian trade, but nonetheless remain at elevated levels as oil prices also moved lower. "Last week it was all about U.S. Treasurys and Bessent's announcement on increased long-end buyback, prompting a mid-week rally," Danske Bank's Jesper Fjarstedt said in a note. "But as markets digested this and concluded that the structural drivers remain the same, the initial move was reversed and long-dated yields closed the week broadly unchanged." The 10-year Treasury yield fell 2.2 basis points to 4.714%, while the 30-year yield, which hit a 19-year high of 5.337% last week, declined 2.7 basis points to 5.248%.Eurozone government bond yields fell in opening trade. On Monday, Belgium will conduct a bond auction. The 10-year Bund yield falls 2.4 basis points to 2.324%, according to Tradeweb. Ireland's 10-year bond yield declined 2.2 basis points to 3.388% after Moody's Ratings upgraded Ireland to Aa2 from Aa3, with a positive outlook, on Friday.Bitcoin rose slightly, staying below Friday's three-month high but remaining elevated. The recent rally is helped by improving liquidity expectations, lower regulatory risk premium and forced short-covering, Zaye Capital Markets' Naeem Aslam said. Bitcoin rose 0.1% to $77,472, having reached as high as $79,455 Friday.Gold prices climbed above $4,700 a troy ounce. In early European trading, New York gold futures rose 0.4% to $4,700.50 an ounce, their highest since mid-May. "The Treasury's surprise ramp-up in buybacks of long-dated government debt revived concerns about a weaker dollar and pushed investors toward alternatives," analysts at Saxo Bank said. Meanwhile, silver was down 0.8% to $69.01 an ounce, while platinum rose 0.6% to $1,906.50 an ounce.Write to Barcelona Editors at [email protected]