US Stock Futures Decline Amid Tariff Concerns; Gold Hits Record High
US stock futures dipped as concerns over trade tariffs weighed on market sentiment. Contracts on the S&P 500 and Nasdaq 100 slipped by about 0.3%, retreating from recent record highs. Meanwhile, gold surged to an all-time high above $2,954 an ounce amid geopolitical uncertainty and shifting economic policies.
Investor caution rose following US President Donald Trump’s renewed threats to expand trade tariffs, contributing to the market’s pullback. Palantir Technologies Inc. was among the notable premarket decliners, extending a 10% slide from the previous session after Defense Secretary Pete Hegseth outlined an 8% reduction in military spending over the coming years.
Mixed corporate earnings also influenced trading. Video game platform Vimeo Inc. and used car retailer Carvana Co. saw declines in premarket trading following disappointing earnings reports. However, China’s Alibaba Group Holding Ltd. provided a bright spot, surging over 7% after its third-quarter revenues exceeded expectations. The strong performance of Alibaba also lifted shares of JD.com Inc. and PDD Holdings Inc.
Gold’s rally was driven by geopolitical uncertainties and market jitters over US foreign policy shifts. The Federal Reserve minutes revealed discussions about pausing or slowing the balance-sheet runoff, leading to a decline in the dollar and Treasury yields. Meanwhile, the Japanese yen strengthened by about 1% against the dollar, reaching its highest level since December.
In Europe, the Stoxx 600 index edged higher after a previous decline, though muted corporate earnings limited gains. Shares in Renault SA, Mercedes-Benz Group AG, and Airbus SE declined following earnings releases. US-exposed defense stocks, including BAE Systems Plc and Qinetiq Group Plc, also saw losses.
Key economic data scheduled for release later this week include US initial jobless claims, the Philadelphia Fed manufacturing index, and the US S&P Global manufacturing & services PMI. Investors are closely watching these reports for insights into economic trends and potential policy shifts.
Market Snapshot:
Stocks:
- S&P 500 futures fell 0.3%
- Nasdaq 100 futures fell 0.3%
- Dow Jones Industrial Average futures fell 0.3%
- Stoxx Europe 600 rose 0.2%
- MSCI World Index remained flat
Currencies:
- Bloomberg Dollar Spot Index fell 0.3%
- Euro rose 0.2% to $1.0441
- British pound rose 0.2% to $1.2614
- Japanese yen rose 0.9% to 150.07 per dollar
Cryptocurrencies:
- Bitcoin increased 1.2% to $97,454.64
- Ether climbed 1.2% to $2,742.77
Bonds:
- 10-year US Treasury yield declined to 4.52%
- Germany’s 10-year yield remained stable at 2.56%
- UK’s 10-year yield rose to 4.62%
Commodities:
- WTI crude oil edged up 0.1% to $72.33 per barrel
- Spot gold increased 0.5% to $2,948.15 per ounce
Market watchers continue to assess the impact of trade policies, geopolitical shifts, and economic indicators as volatility remains a key theme across global markets.