(Bloomberg) — US stocks were set for a modest retreat from their latest record highs as concerns around trade tariffs weighed on sentiment. Gold set a fresh all-time high.
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Contracts on the S&P 500 and the Nasdaq 100 slipped by about 0.3%. Palantir Technologies Inc. was among the biggest losers in US premarket trading, on track to extend Wednesday’s 10% slide, after Defense Secretary Pete Hegseth outlined plans to cut military spending by 8% over the coming years.
Video game platform Vimeo Inc. and used car retailer Carvana Co. slumped in premarket after disappointing earnings. China’s Alibaba Group Holding Ltd. was a bright spot, adding more than 7% after third-quarter revenues beat estimates. Its result also helped lift Chinese e-commerce peers, with JD.com Inc. and PDD Holdings Inc. both rallying in premarket trading.
The mixed corporate results added to market jitters over US President Donald Trump’s threats to widen trade tariffs and his wavering support for Ukraine and its European allies. The geopolitical tensions lifted gold prices to a new record above $2,954 an ounce.
“We saw a shift in the tone of the US on how they are going to approach the Russia-Ukraine environment, and this shifting tone is bringing about some uncertainty for markets,” said Shaniel Ramjee, investment manager at Pictet Asset Management.
The dollar and Treasury yields slipped after Federal Reserve’s minutes revealed policymakers had discussed pausing or slowing its balance-sheet runoff. Data on US weekly jobless claims are due later, with economists expecting the figure to hold more or less steady from the previous week. The report may also give an early insight into the impact of the Trump administration’s sweep of the federal workforce.
Elsewhere, the yen advanced about 1% to reach its strongest level against the dollar since December, on speculation the Bank of Japan will raise rates sooner rather than later. Japanese 10-year government bond yields hit its highest level since 2009 on expectations of a strong inflation print on Friday.
Europe’s Stoxx 600 index edged higher after Wednesday’s decline, though sombre earnings capped the recovery. Shares in Renault SA, Mercedes-Benz Group AG and Airbus SE slipped after their results, while US-exposed defense stocks, such as BAE Systems Plc and Qinetiq Group Plc, also lost ground.
