Gold reaches new all-time high as markets waver

US stocks were poised for a slight pullback from their record highs as concerns over trade tariffs continued to weigh on investor sentiment. Meanwhile, gold surged to a fresh all-time high.

Futures tied to the S&P 500 and Nasdaq 100 dipped approximately 0.3%. In premarket trading, Palantir Technologies Inc. extended Wednesday’s 10% drop, following comments from Defense Secretary Pete Hegseth outlining an 8% reduction in military spending over the coming years.

Earnings disappointments also shook the market, with Vimeo Inc. and Carvana Co. slipping in premarket trading after releasing weaker-than-expected financial results. However, Alibaba Group Holding Ltd. provided a bright spot, jumping over 7% after exceeding third-quarter revenue estimates. The strong performance helped boost Chinese e-commerce stocks, with JD.com Inc. and PDD Holdings Inc. rallying as well.

Market jitters were further fueled by President Donald Trump’s renewed threats to expand trade tariffs, alongside his uncertain stance on Ukraine and European allies. These geopolitical concerns drove gold prices to a new record, surpassing $2,954 per ounce as investors sought safe-haven assets.

The dollar and treasury yields slipped following the release of Federal Reserve meeting minutes, which indicated discussions about pausing or slowing the central bank’s balance sheet runoff. Later today, investors will watch weekly jobless claims data, expected to remain steady compared to the previous week. The report could provide early signals on how Trump’s federal workforce policies are impacting the labor market.

In the currency market, the yen surged by 1%, reaching its strongest level against the dollar since December. Speculation is mounting that the Bank of Japan may raise interest rates sooner than anticipated. Meanwhile, Japanese 10-year bond yields hit their highest level since 2009, as investors brace for an inflation report due on Friday that could support tighter monetary policy.

Walmart’s earnings outlook disappoints, stock drops

Walmart Inc. issued a weaker-than-expected profit forecast for the full year, signaling that even the world’s largest retailer is feeling the effects of an uncertain economic landscape.

The company projected adjusted earnings per share to range between $2.50 and $2.60, falling short of Wall Street estimates. In response, Walmart’s stock plunged 9% in early trading.

Despite Walmart’s history of conservative financial guidance, investors had high expectations following a 77% stock surge over the past year. The retailer has been gaining market share across multiple categories and income brackets. Known for its low-cost offerings, Walmart has benefited from consumers shifting their spending toward essentials like groceries amid persistent inflation over recent years.

Alibaba sees strongest sales growth since 2023

Alibaba Group Holding Ltd. posted its fastest revenue growth in over a year, reflecting a rebound in its core commerce business and significant progress in artificial intelligence development.

The Chinese e-commerce giant reported an 8% year-over-year revenue increase to 280.2 billion yuan ($38.6 billion) for the December quarter, surpassing analysts’ projections. Growth in cloud services revenue also hit its highest quarterly pace in nearly two years. Following the announcement, Alibaba shares surged more than 6% in U.S. pre-market trading.

Alibaba has been on a comeback trajectory after a years-long government crackdown severely impacted its once-dominant online commerce empire. The company’s turnaround gained momentum in 2024 when Joe Tsai and Eddie Wu, two of Jack Ma’s closest confidants, took charge and shifted investment focus toward AI and e-commerce.

Silver testing $33

Despite last week’s decline, which formed a notable reversal candle on the daily chart, silver managed to recover almost 90% of that decline, reaching a high of $33.20 today. The previous week’s high stands at $33.38. Currently, the technical outlook remains bullish, but a weekly close above $33 is necessary to pave the way for further gains, potentially targeting $34. On the downside, any corrections are expected to be limited above $32.00.

Crude oil downside correction may be ending

Brent Crude has advanced for three consecutive days and continues its upward movement during today’s trading, reaching as high as $76.30 at the time this report was released. If it closes above $76.50 for the week, it would indicate that the downside correction has concluded and a new bullish trend is emerging. In that case, the next level to watch would be $78.00, while any potential downside correction is likely to remain limited above $74.

Prepared by Nour Hammoury, Chief Market Analyst at SquaredFinancial
Nour is an investor, independent market strategist, and financial advisor. He holds a BA in Finance and Banking Science from Al-Ahliyya Amman University and a CFTe in Economics from the International Federation of Technical Analysts. He has more than 15 years of experience in forex, stocks, and global economic developments, as well as central bank policies and intermarket analysis. He appears regularly on major international TV networks, such as BBC, Al-Jazeera, Al Hurra, CNBC, and Bloomberg, holding open discussions and sharing insights and readings of the markets and trends.

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