(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%. Treasuries gained after Treasury Secretary Scott Bessent said that any move to boost the share of longer-term Treasuries in government borrowing is some ways off as the Federal Reserve shrinks its own bond holdings through quantitative tightening. The 10-year benchmark yield fell about three basis points to 4.5% as the yield curve flattened.
Walmart Inc. shares fell as much as 9.5% in premarket trading after the world’s largest retailer forecast lower-than-expected profit for the full year. Video game platform Vimeo Inc. and used car retailer Carvana Co. slumped in premarket after disappointing earnings.
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.
Investors also harbor some concerns about the Trump administration’s domestic agenda, where spending plans may widen the deficit and mass deportations could create labor shortages that reignite inflation.
“Our fixed-income team perceives US policies as potentially constituting a supply shock, slowing the pace of both US growth and disinflation,” according to Andrew Craig at BNP Paribas Asset Management’s Investment Insights Centre. “We view it as less likely that the Federal Reserve will ease policy rates in a stagflationary scenario.”
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.
Palantir Technologies Inc. extended Wednesday’s losses in US premarket trading after Defense Secretary Pete Hegseth outlined plans to cut military spending by 8% over the coming years.