Morning wrap: Bitcoin surges to $75k, Wall Street tries to stabilize

Yesterday’s Wall Street session ended clearly weaker. Treasury yields quickly rebounded from their earlier decline, while investors concluded that the Treasury Department’s measures may provide only temporary support for the bond market. The S&P 500 fell around 0.9%, while sentiment was also hurt by a sharp decline in Walmart following a weaker quarterly report.

• Outside the U.S. equity market, which is attempting to rebound today, attention is also on oil and Bitcoin. Oil has pulled back after the contract rollover to around $91 per barrel but remains elevated amid tensions surrounding Iran, while BTC has broken above $75,000. Scott Bessent signaled yesterday that larger debt buybacks could be considered and also pointed to a broader fiscal plan.
• European equity indices are trading slightly higher ahead of the cash market open. Today’s focus will be on preliminary services and manufacturing PMI data from the largest European economies: the UK (7 AM GMT), France (8:15 AM GMT), Germany (8:30 AM GMT), the euro area (9 AM GMT), and finally the U.S. (2:45 PM GMT). Preliminary consumer confidence data for Europe will be released at 16:00.
• Nvidia denied reports that it is developing a China-specific LPU product. The company stressed that such a chip is not currently part of its product roadmap and that the earlier reports were incorrect.
• Broadcom is reportedly discussing financing for its latest AI project worth more than $60 billion, with the structure potentially including around $30 billion of junior debt as well as a senior secured tranche. Blackstone and Apollo may participate in the financing, highlighting the scale of capital required for the continued expansion of AI infrastructure.