Futures for US Stocks Sway as Gold Drops From Record High – Europe Market Wrap

European markets and US share futures struggled to find direction on Tuesday as investors awaited political events on both sides of the Atlantic. Gold fell after reaching close to $4,000 per ounce.

Futures on the S&P 500 slipped lower after the index set a new high on Monday, boosted by tech firms riding the AI expenditure boom. Treasury yields edged higher as the US government shutdown continued. Bullion fell from a record $3,977 as the Dollar rose for a second day.

Europe’s Stoxx 600 benchmark was little changed. France’s CAC 40 erased an early decline as Macron made a last-ditch effort to salvage the government after PM Lecornu’s resignation on Monday. Truckmakers including Volvo fell after Trump said 25% duties on medium- and heavy-duty trucks would begin next month.

While global markets have climbed to new highs, concerns about the US government shutdown and France’s political turmoil have pushed investors towards alternative assets such as gold and Bitcoin, which have both reached new highs. At the same time, a wave of AI-related agreements among chipmakers has pushed shares higher, raising concerns about a speculative bubble reminiscent of the late-90s dot-com boom.

In Asia, Japanese shares extended their rally after Sanae Takaichi’s near-certain election as the country’s next prime minister sent the Yen lower and raised yields on long-term bonds. The Chinese and Hong Kong markets were closed Tuesday.