US stock futures fell on Wednesday after disappointing earnings from Alphabet, while the dollar took a dive against the yen. Gold hit another record high, driven mostly by a weaker dollar.
Investors are shrugging off President Donald Trump’s comments that the US may take over Gaza economically, which has added to market volatility. However, the suggestion is not being taken seriously, and investors are focusing on company earnings instead.
Alphabet, the parent company of Google, missed forecasts with its spending on capital expenditures, causing its shares to fall 7% in premarket trading. Other stocks in focus were Walt Disney and Uber, which rose and fell respectively.
In Europe, Novo Nordisk’s earnings beat expectations, helping lift the STOXX 600 index. The delay in tariffs has eased concerns about interest rate cuts this year, but investors remain cautious due to ongoing trade tensions with China and Europe.
The US dollar is relatively flat against a basket of major currencies, having risen 7% in 2024. Chinese markets returned from a week-long break for the Lunar New Year holidays, and Beijing set a firm fix for its yuan to counter concerns about allowing it to slide due to tariffs on its exports.
Gold hit a fresh all-time high at $2,877 an ounce, buoyed by the pullback in the dollar and Treasury yields. Oil prices were weighed down by China’s tariffs on US oil imports, which offset a potential boost from reports that Trump had restored his “maximum pressure” campaign on Iran.
Source: https://www.reuters.com/markets/global-markets-global-markets-2025-02-04