US Stocks to Open Lower on Trade Concerns, Gold Hits Record High
US equities are poised for a modest decline from their recent records as trade tariff uncertainties dampen sentiment. Gold has surged to an all-time peak.
S&P 500 and Nasdaq Futures Dip
Contracts on the S&P 500 and Nasdaq 100 have shed approximately 0.3%. Palantir Technologies Inc. is among the major premarket losers, continuing its Wednesday slide after Defense Secretary Pete Hegseth announced plans for an 8% reduction in military spending. Vimeo Inc. and Carvana Co. have also retreated premarket following disappointing earnings.
Alibaba's Boost
China's Alibaba Group Holding Ltd. is an exception, surging over 7% after its third-quarter revenues surpassed estimates. This performance has lifted Chinese e-commerce peers, including JD.com Inc. and PDD Holdings Inc.
Mixed Corporate Results and Geopolitical Jitters
Disparate corporate earnings and President Donald Trump's threats to expand trade tariffs have contributed to market volatility. Geopolitical tensions have also boosted gold prices to a new record above $2,954 per ounce.
Dollar and Treasury Yields Ease
The dollar and Treasury yields have declined since the release of Federal Reserve minutes indicating discussions on pausing or slowing balance-sheet reduction. Weekly jobless claims data is expected to remain relatively steady, potentially offering insights into the impact of federal workforce cuts.
Japanese Yen Gains
The yen has appreciated around 1% against the dollar, its strongest level since December, on speculation of an earlier-than-expected rate hike by the Bank of Japan. Japanese 10-year government bond yields have reached their highest since 2009, driven by anticipation of robust inflation data on Friday.
European Stocks Mixed
Europe's Stoxx 600 index has rebounded slightly after Wednesday's drop, although weak earnings have capped gains. Renault SA, Mercedes-Benz Group AG, and Airbus SE have declined following their results. US-oriented defense stocks like BAE Systems Plc and Qinetiq Group Plc have also lost ground.
Key Events This Week
* Thursday: US initial jobless claims, Philadelphia Fed manufacturing index
* Thursday: Speeches by Fed's Austan Goolsbee and Alberto Musalem
* Friday: Eurozone manufacturing and services PMIs, US manufacturing and services PMIs, existing home sales, consumer sentiment
Market Movements
Stocks
* S&P 500 futures: -0.3%
* Nasdaq 100 futures: -0.3%
* Dow Jones Industrial Average futures: -0.3%
* Stoxx Europe 600: +0.2%
* MSCI World Index: Unchanged
Currencies
* Dollar Index: -0.3%
* Euro: +0.2%
* Pound: +0.2%
* Yen: +0.9%
Cryptocurrencies
* Bitcoin: +1.2%
* Ether: +1.2%
Bonds
* 10-year Treasury yield: -1 basis point to 4.52%
* 10-year German yield: Unchanged at 2.56%
* 10-year British yield: +1 basis point to 4.62%
Commodities
* WTI crude: +0.1% to $72.33 per barrel
* Spot gold: +0.5% to $2,948.15 per ounce