US Futures Slide as Traders Return; Gold Retreats – Europe Market Wrap
US stock futures dipped as fears over AI weighed on morale, as Wall Street prepared to return from its holiday break. Treasuries edged higher while gold fell.
Contracts on the Nasdaq 100 index fell 0.9%, while those on the S&P 500 fell 0.4%, as all of the so-called “magnificent seven” US technology firms fell in premarket trade. The Pound fell against the Dollar as UK unemployment reached an almost five-year high. Spot gold fell toward $4,900 per ounce. Europe’s Stoxx 600 gauge saw minimal change.
US traders are returning to their desks, eyeing corporations’ growing AI spending while also concerned about the technology’s potential to harm industries outside of the tech sector. Meanwhile, tensions in the Middle East are rising, and private-sector job data released later Tuesday may provide insight into the Fed’s interest-rate path.
The risk-off sentiment and last week’s softer inflation print boosted Treasuries, dropping the yield on the 10-year note by two basis points to 4.03%. The Yen, long seen as a safe haven, gained 0.3% against the Dollar.
Other precious metals followed gold’s slide, with silver down more than 3% and platinum also down. Bitcoin fell 1.5 percent to $67,826.
