U.S. stocks erased losses amid gains in megacaps as investors parsed through the latest corporate results. 

The S&P 500 rose, after falling as much as 0.4%. The tech-heavy Nasdaq 100 extended gains as megacaps Amazon.com Inc. and Microsoft Corp. rose. Netflix Inc. jumped after it reported better-than-feared earnings, results that helped underpin gains in streaming peers Walt Disney Co and Paramount Global.  

Treasurys advanced as growing concern that Europe may lose access to Russian gas added to recession fears. Risk sentiment took a hit on news the European Union is preparing for a scenario where Russia halts gas exports to retaliate against sanctions over its invasion of Ukraine. 

The risk of a global downturn and Europe’s energy crisis doused optimism about the U.S. earnings season and confidence the Federal Reserve will take a more measured approach to tightening. 

The EU proposed that the bloc cut its natural gas consumption by 15% over the next eight months to ensure that any full Russian cutoff of natural gas supplies won’t disrupt industries over the winter.

“Markets are starting to come to a realization that the tail risk of a sustained meaningful drop in European gas imports is rapidly becoming the core risk,” said Seema Shah, chief global strategist at Principal Global Investors. “Global markets have largely assumed they will be immune to European pain. However, Europe is a key trade partner for several major economies and spillover effects are almost unavoidable.”

West Texas Intermediate crude oil slipped below $103 a barrel. Bitcoin hovered above $23,000 after climbing out of a one-month-old trading range.

Key events to watch this week:
• Earnings this week include Tesla
• Bank of Japan, European Central Bank rate decisions. Thursday
• Nord Stream 1 pipeline scheduled to reopen following maintenance. Thursday

Some of the main moves in markets:

• The S&P 500 rose 0.3% as of 10:32 a.m. New York time
• The Nasdaq 100 rose 1%
• The Dow Jones Industrial Average was little changed
• The Stoxx Europe 600 fell 0.1%
• The MSCI World index rose 0.4%

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.0218
• The British pound was little changed at $1.1987
• The Japanese yen was unchanged at 138.19 per dollar

• The yield on 10-year Treasurys declined two basis points to 3.00%
• Germany’s 10-year yield declined three basis points to 1.25%
• Britain’s 10-year yield declined five basis points to 2.13%

• West Texas Intermediate crude fell 1.6% to $102.51 a barrel
• Gold futures fell 0.2% to $1,723.80 an ounce

--With assistance from Denitsa Tsekova.

This article was provided by Bloomberg News.