US Stock Futures Rise, Yen Gains On Japan Election: Markets Wrap

US stock futures climbed ahead of a busy earnings week that will include results from Tesla Inc. and Alphabet Inc. The yen strengthened as Japan’s Prime Minister vowed to stay in power even after an election defeat.

S&P 500 contracts added 0.3% and Europe’s Stoxx 600 Index was little changed. Stellantis NV slid 1.5% after reporting a loss in the first half as restructuring expenses, slowing sales and US tariffs hit the struggling automaker. Ryanair Holdings Plc rallied 6.4% on strong earnings. The yen strengthened 0.6% while the dollar slipped.

While US stocks have been hovering near all-time highs, there are growing concerns about whether America’s trading partners will be able to reach a deal before the latest deadline on Aug. 1. European Union and US negotiators are heading into another week of intensive talks to try to break an impasse.

“The market is behaving a little bit with complacency,” said Nannette Hechler-Fayd’herbe, EMEA chief investment officer at Lombard Odier. 

Treasuries extended their advance to a fourth day, sending the 10-year yield down three basis points. A gauge of dollar strength slipped 0.2%.Federal Reserve Chair Jerome Powell’s removal as Fed Chair remains unlikely, Barclays strategists including Themistoklis Fiotakis wrote in a note to clients. Even in such a scenario, it is hard to see the other governors voting for cuts if the economic backdrop didn’t warrant them, they said.

• Stellantis recorded a €2.3 billion ($2.7 billion) net loss in the first half as restructuring expenses, waning sales and the impact of US tariffs hit the struggling automaker.

• Ryanair’s net income in the first quarter more than doubled, and the budget airline said it will recover most of the fare drop suffered last year to achieve “reasonable” profit growth in fiscal 2026.

In Japan, Prime Minister Shigeru Ishiba’s vow to carry on as leader offered hope for continuity on fiscal spending plans and suggested the nation’s efforts to win a trade deal with the US will also stay on track.

The yen had dropped for two weeks and bond yields spiked ahead of the vote on concern a poor showing by the prime minister would open the door to more spending and tax cuts.

“Some investors had positioned for a larger setback for the coalition and even anticipated Ishiba’s resignation,” said Akira Moroga, chief market strategist at Aozora Bank. “The unwinding of such positions, combined with relief that a political risk event has passed, contributed to the initial yen rebound.”