S&P, Nasdaq end higher as Wall Street gyrates in Trump-tariffs limbo

The S&P 500 and the Nasdaq Composite both closed higher on Tuesday, after a topsy-turvy day on Wall Street dominated by investor angst ahead of the impending tariff announcements from the Trump administration.

Financial markets have been volatile in recent weeks as investors assessed the economic fallout of US President Donald Trump’s extensive tariff plans, which have sparked worries about a US economic slowdown and higher inflation.

Some of the uncertainty that has gripped markets is expected to dissipate after Trump unveils his tariff plan on Wednesday during an event in the Rose Garden, currently scheduled for 4 p.m. EDT.

However, while clarity on the specific tariff measures will be welcomed by investors, the overall backdrop is set to remain highly uncertain, making it difficult for markets to agree on directionality.

“The fact of the matter is sentiment is washed out and positioning is still fairly light,” said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions.

“I don’t think we’re going to get the type of clarity that investors and business leaders want,” he added. “And at the end of the day, we spend a lot of time talking about tariffs, but the bigger story is we are dealing with an economy that is not firing on all cylinders.”

For now, according to Melson, this means investors are “sitting on their hands, biding their time.”

This attitude was reflected in the three Wall Street benchmarks on Tuesday, which swung between positive and negative territory throughout much of the day, before finishing the afternoon with some decent momentum.

The S&P 500 gained 21.22 points, or 0.38%, to 5,633.07 points, while the Nasdaq Composite climbed 150.60 points, or 0.87%, to 17,449.89. The Dow Jones Industrial Average edged down 11.80 points, or 0.03%, to 41,989.96.

Gains on the Nasdaq and S&P 500 were fueled by rebounds in technology stocks, which have been among the most punished in the opening weeks of the year.

Big-tech advances were led by Tesla, which climbed 3.6% ahead of its first-quarter vehicle deliveries report on Wednesday. There were also gains for other Magnificent Seven stocks, including Amazon.com, Microsoft, and Meta Platforms, which rose between 1% and 1.8%.

The S&P, however, was also weighed down by falls in healthcare and airlines.

Johnson & Johnson was the worst performer on the S&P 500, falling 7.6% and dragging the broader healthcare sector down 1.8% to the bottom of the 11 S&P sectors. A US bankruptcy judge rejected the company’s USD 10 billion proposal to end tens of thousands of lawsuits alleging that its baby powder and other talc products cause ovarian cancer.

Meanwhile, Delta Air Lines, American Airlines, and Southwest Airlines all dropped between 2.4% and 5.9%, as Jefferies analysts downgraded stocks amid concerns that economic uncertainty could disrupt both business and retail travel demand.

Among single stocks, there were big gains posted by some of the newest public companies.

Conservative news outlet Newsmax soared for the second straight day, jumping 208%, following a more than 700% surge in its NYSE debut on Monday.

CoreWeave, which has had a more rocky start since debuting as a public company on Friday, climbed 41.8% to trade back above the IPO price of the artificial-intelligence startup.

Volume on US exchanges was 15.09 billion shares, compared with the 15.83 billion average for the full session over the last 20 trading days.

(Reporting by Sruthi Shankar and Pranav Kashyap in Bengaluru and David French in New York
Editing by Krishna Chandra Eluri and Matthew Lewis)

Dollar’s record low FX reserves share not all bad news for Trump: McGeever

ORLANDO, Florida – In January, US President Donald Trump warned the so-called BRICS nations against replacing, or backing any currency to take the place of, the “mighty US dollar.”

While the International Monetary Fund’s latest foreign exchange reserves data for the fourth quarter of last year suggests central banks around the world continue to pull away from the greenback, there may be a silver lining for the president.

The IMF’s Currency Composition of Official Foreign Exchange Reserves (Cofer) data, the gold standard for FX reserves information, show that countries have been gradually chipping away at their dollar holdings and diversifying for years.

Indeed, the greenback’s nominal share of official FX reserve holdings in the third quarter of last year fell to a record low 57.3% from over 72.0% in 2001.

That crept up slightly to 57.8% in the fourth quarter, a rare rise, but the dollar surged 7.6% against a basket of major currencies in the period, its biggest quarterly appreciation in nearly a decade. All else equal, this reduces the dollar-value of reserves held in non-dollar currencies such as the euro, sterling, or Japanese yen.

When adjusting for these FX changes, the dollar’s share of reserves slid to a record low of 54.1% from 55.3%, according to Goldman Sachs. At the start of the millennium, that share was over 71%.

Importantly, the Cofer figures only go up to December 31, so do not take into account any reserve shifts made amid the historically high policy uncertainty and market ructions of recent months.

With military, diplomatic and trade ties going back decades now fraying at an alarming rate, reserve managers are bound to be rethinking their FX allocations. And that is unlikely to involve a sudden rediscovered love for the dollar.

STILL NUMBER ONE

Reserve managers do not typically make knee-jerk reactions to market gyrations or the headlines du jour. They’re a cautious breed, prioritizing liquidity, stability, and long-termism over yield, opportunity, and a fast buck.

But further diversification of their FX reserves can hardly be considered an impulsive reaction, as the trend is pretty well entrenched. The emergence of any new world order in the coming years would likely only strengthen it.

No matter how you slice it, the dollar’s overwhelming dominance in global FX reserves is weakening. But that doesn’t mean the greenback’s place as the world’s preeminent reserve currency is under threat.

Its share is not being eaten up by its nearest rival, the euro, but by a bunch of smaller, “nontraditional” reserve currencies such as the Korean won, Australian and Canadian dollars, and China’s renminbi.

“It’s not just diversification out of the dollar. Euro reserve holdings have fallen in nominal and valuation-adjusted terms as well,” notes Goldman’s Michael Cahill.

This is a trend that has been underway for years, taking hold just after the Global Financial Crisis and accelerating again after the pandemic.

The Cofer data shows the aggregate share of “nontraditional” currencies in central banks’ FX reserves was 12.6% in December, just off September’s record high of 12.7%. Before 2009, that share had never exceeded 3%.

The euro’s share since its launch more than 25 years ago has never fallen below 19%, and only once, in late 2020, has it exceeded 21%. Any reduction in the difference between the dollar and euro shares has been caused by reserve managers shunning the greenback rather than taking a shine to the euro.

Their preference to build up holdings of several smaller currencies has created a somewhat curious equilibrium. The dollar is seeing its dominance gradually diminish, but it’s in little danger of losing its role as the world’s sole reserve currency.

Trump, who seems to want the dollar to remain dominant while no longer sucking in so much of the world’s savings, may be happy with that.

(The opinions expressed here are those of the author, a columnist for Reuters.)

(By Jamie McGeever)

Gold prices soar to all-time high over trade war concerns

Gold prices surged to a record high on Friday, as investors flocked to the safe-haven asset amid fears of a global trade war triggered by US President Donald Trump’s latest tariffs.

Spot gold climbed 0.6% to USD 3,074.43 an ounce as of 02:41 p.m. EDT (1839 GMT) after hitting its eighteenth record high this year at USD 3,086.70 earlier in the session. Bullion is up 1.7% this week and is on track for a fourth straight weekly gain.

US gold futures settled 0.8% higher at USD 3,114.30.

“It continues to be the safe-haven demand on ramped-up concerns about tariffs, trade and ongoing geopolitical uncertainty as well,” that is supporting gold, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold, traditionally seen as a hedge against economic and political instability, tends to thrive in a low-interest rate environment.

The Personal Consumption Expenditures (PCE) price index increased 0.4% in February, compared with analysts’ expectation of 0.3% rise, similar to January’s increase.

The data isn’t likely to change rate cut expectations very much, as it is only a little hotter than expected, Grant added.

The Fed has held interest rates steady so far this year after three rate cuts in 2024, but hinted at a potential half-percentage point in rate cuts later in the year.

The market is currently pricing 63 bps of Fed rate cuts by the year-end, starting in July.

Markets are now bracing for Trump’s plans for reciprocal tariffs, which he intends to lay out on April 2.

Trump’s policies are perceived as inflationary, posing a risk to economic growth and escalating trade tensions, analysts say.

Spot silver fell 1.4% to USD 33.93 an ounce, platinum eased 0.7% to USD 979.10, and palladium was down 0.3% to USD 972.13. All three were set for weekly gains.

(Reporting by Anmol Choubey in Bengaluru; Editing by Vijay Kishore)

Wobbly US stocks face test with tariffs, jobs data

NEW YORK – A rocky US stock market will be tested this week by a pivotal deadline for President Donald Trump’s tariff plans and an employment report that could reveal a slowing economy.

The S&P 500 posted a weekly loss, selling off on Friday after data pointed to underlying price pressures. Earlier this month, the benchmark index marked a correction, dropping more than 10% from its record high.

The index is down 9.17% from its February 19 high as uncertainty over the health of the US economy and trade policy has kept investors on edge.

Investors remain worried about signs that Trump’s trade war could reignite inflation.

“April is going to have a lot of moving parts and probably a lot of volatility following a really difficult March,” said Eric Kuby, chief investment officer at North Star Investment Management Corp. “There’s a lot of information that could move markets in a variety of different directions.”

Investors have been hoping the coming days will clarify the tariff landscape. Trump has pointed to April 2 for a broad batch of tariffs to be announced, including “reciprocal” levies on countries, calling it a “Liberation Day” for the US economy.

The tariff situation has led Wall Street analysts to pull back on economic and corporate earnings forecasts, while uncertainty over how trade policy will play out is weighing on businesses and consumers.

A survey this week showed US consumer confidence plunged in March to its lowest in more than four years, with households fearing a recession and higher inflation because of tariffs.

“Everybody wants clarity because however it plays out, it gives the roadmap and we’re going to adapt, adjust,” said Jack McIntyre, portfolio manager for Brandywine Global. “It’s this cloud of uncertainty that’s creating some angst.”

On Wednesday, Trump announced a 25% tariff on auto imports, a measure that could add thousands of dollars to the average cost of a vehicle in the US Shares in carmakers such as General Motors and Ford tumbled on Thursday.

Data from options analytics service ORATS show the equity options market pricing higher volatility for near-term S&P 500 option expirations, including contracts expiring on March 31 and April 4, compared to those further out.

“Traders are paying a premium for near-term protection,” Matt Amberson, principal at ORATS, said.

After annual gains of over 20% for years, the S&P 500 is logging a 5.12% decline so far in 2025 as the end of the first quarter nears. The index has lost its gains since Trump’s November election, which had stoked excitement on Wall Street about the president’s expected pro-growth agenda that has been deflated by worries over tariffs.

The forward price-to-earnings ratio on the S&P 500 has moderated to less than 21 times as of Wednesday, compared to about 22 to start the year, but remains well above its long-term average of 15.8, according to LSEG Datastream.

“We came into the year with an expensive market coupled with high expectations. And now we’re getting uncertainty,” said Jack Ablin, chief investment officer at Cresset Capital. “Those … don’t work very well together.”

Tariff worries have compounded concerns about the US economic outlook. Investors will focus on the monthly US jobs report due on April 4.

Employment growth is expected to have slowed in March to 128,000 from 151,000 in February, according to a Reuters poll.

One focus on Wall Street is how much light the jobs data will shed on an effort led by Trump ally Elon Musk to reduce the federal government workforce.

The end of the first quarter on Monday could bring asset price fluctuations, as portfolio managers make last-minute adjustments. Investors also will begin eyeing the start of first-quarter earnings season, with reports arriving in earnest later in the month.

“We’re generally in a risk off environment. That’s been the tone since we’ve entered this correction phase,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “So it remains to be seen whether we’ve seen the bottom.”

(Reporting by Lewis Krauskopf and Carolina Mandl and additional reporting by Saqib Ahmed, in New York; Editing by Saqib Iqbal Ahmed, David Gregorio, and Richard Chang)

Oil slips on recession fears but posts 3rd weekly gain

NEW YORK – Oil prices fell on Friday on worries that US tariff wars could spark a global recession, but gained for a third consecutive week after Washington ratcheted up pressure on OPEC members Venezuela and Iran.

Brent crude futures fell 40 cents, or 0.5% to settle at USD 73.63 a barrel. US West Texas Intermediate crude futures (WTI) fell 56 cents, or 0.8%, to close at USD 69.36 a barrel.

US President Donald Trump plans to announce reciprocal tariffs targeting a wide range of imports, effective on April 2.

The trade war has investors worried about a potential recession, JPMorgan analysts told clients.

“Concerns about a trade war, coupled with elevated US policy uncertainty, are weighing heavily on sentiment,” they said.

Although the risk was elevated, high-frequency oil demand indicators have held up relatively well for now, JPMorgan noted.

Mid-week data from the Energy Information Administration showed US crude inventories fell by 3.3 million barrels to 433.6 million barrels last week, compared with analysts’ expectations in a Reuters poll for a 956,000-barrel draw.

On a weekly basis, Brent futures gained 1.9%, while WTI rose 1.6%. Since hitting multi-month lows in early March, Brent is up more than 7%, and WTI has rebounded over 6%.

“The key theme this week was the Trump administration ratcheting up the pressure on the Maduro regime in Venezuela,” Barclays analyst Amarpreet Singh said.

Trump on Monday announced new 25% tariffs on potential buyers of Venezuelan crude, days after US sanctions targeting China’s imports from Iran.

The measures could exacerbate an anticipated 200,000 barrel-per-day decline in Venezuelan crude oil output this year, Singh said.

It has compounded uncertainty for buyers and saw the trade of Venezuelan oil to top buyer China stall. Elsewhere, sources said India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports.

Oil markets are readjusting global supply expectations as a result of US sanctions against Venezuela and Iran, with Trump having promised to drive the latter’s oil exports to zero. The US has issued four rounds of sanctions targeting Iran’s oil sales since Trump’s return to the White House.

The second quarter should be tighter than originally thought, StoneX analyst Alex Hodes said. “If there are reductions in Venezuelan or Iranian crude oil barrels on the market, this would certainly be a bullish development.”

The OPEC+ group is set to begin its program of monthly increases in oil production in April. The group, which comprises OPEC and allies led by Russia, will likely continue to raise oil output in May, Reuters reported on Monday.

(Reporting by Shariq Khan in New York, Paul Carsten in London, and Siyi Liu in Singapore; Editing by Marguerita Choy and David Gregorio)

Deal slump hits US high-grade bond supply, pressures spreads

NEW YORK – The pipeline for US high-grade corporate bond issuance to fund mergers has fallen to the lowest levels in five years as President Donald Trump’s trade war deters deals, in what could be a boon for borrowers but a challenge for banks and investors.

Wall Street had expected the Trump administration’s policies such as deregulation and tax cuts to fuel a resurgence in deal activity and add USD 250 billion to USD 300 billion of investment-grade bonds to fund it this year, up from USD 179 billion in 2024, according to interviews with six debt capital markets bankers.

Instead, economic uncertainty due to Trump’s policies, especially the threat of tariffs on US imports, has thrown markets into turmoil, and prompted executives to hit “pause” on deals while they await clarity. US M&A volume in the first quarter fell 3%, Dealogic data shows.

Meghan Graper, global head of debt capital markets at Barclays, said only USD 8 billion of acquisition financing is currently in the pipeline for the market, compared with roughly USD 100 billion at the same point last year, the lowest since June 2020.

Overall, investment-grade bond issuance volumes were expected to average USD 1.65 trillion in 2025, some USD 150 billion more than a year earlier, according to Informa Global Markets.

Daniel Botoff, RBC Capital Markets global head of debt capital markets, said he had expected some 20% of issuance volumes this year to comprise M&A financing. “But that expectation is looking optimistic,” he said.

Some bankers and analysts said the lower issuance to finance deals could put tightening pressure on credit spreads, the premium over Treasuries that issuers pay to investors.

If the M&A slump continues, experts said it could also hit banks’ bottom lines, potentially leading to job losses in the industry.

Daniel Krieter, a strategist at BMO Capital, said he now expects overall investment-grade volumes for the year to end up closer to USD 1.5 trillion, the same as in 2024, the second-busiest year ever for issuance.

But that volume of issuance may not be enough to satisfy investors who are expected to be flush with cash.

Investors will get back nearly USD 1 trillion this year – which is unusually high – in interest payments and as bonds mature. Most of that amount is expected to be reinvested, according to a JP Morgan research note and analyst estimates.

This will be on top of the already-persistent investor demand to lock in the high yields on the highest-rated bonds before expected cuts in US interest rates this year.

Credit spreads have tightened nearly 6 basis points since touching their widest levels for the year in March when markets turned volatile, according to ICE BAML data. But at 91 basis points, they are only 14 basis points away from their lowest levels in over a decade.

Without a burst of bond issuance to fund M&A activity, spreads may remain at these tight levels or narrow further even if the economy slows and risk in these bonds increases.

“Growth is almost certain to slow as a result of Trump’s trade and tariff policies, but a recession appears unlikely in the medium term,” said Edward Marrinan, macro credit strategist at SMBC Nikko Securities.

“We do not expect credit spreads to move materially wider from current levels — unless our view on recession changes,” said Marrinan.

The comedown in expectations of issuance has been dramatic. At one point in the first quarter it looked like they were on the right track with some big deals announced.

In March, for example, nearly USD 49 billion was raised by investment-grade companies to fund acquisitions, including a USD 26 billion eight-part bond offering by candy giant Mars to finance its USD 36 billion takeover of Pringles maker Kellanova – the largest M&A financing in two years – and a USD 10 billion six-part bond offering by design-software maker Synopsys to support its USD 35 billion purchase of Ansys.

But Barclays’ Graper said that the trend has not held up, and the pipeline has dried.

Volatility is “putting a dampener on dealmaking activity with buyers reluctant to pay what sellers want in an uncertain macro environment,” said Sandeep Desai, co-head of leveraged debt markets for North America at Deutsche Bank.

With a lag between announcement and financing, the absence of an outsized pipeline already in place does not bode well for the year.

“New M&A that will need financing this year would have to be struck in the next few months,” said Victor Forte, head of investment-grade capital markets and syndicate at Mizuho. “But that progression has been delayed because of the macroeconomic uncertainty.”

(Reporting by Shankar Ramakrishnan and Anirban Sen in New York; Editing by Paritosh Bansal and Matthew Lewis)

Oil approaches one-month highs as investors assess supply, trade war risks

NEW YORK – Oil prices edged higher on Thursday as traders assessed a tightening of crude supplies along with new US tariffs and their expected effect on the world’s economy.

Brent crude futures gained 24 cents, or 0.3%, to settle at USD 74.03 a barrel. US West Texas Intermediate crude futures rose 27 cents to USD 69.92.

On Wednesday, oil prices rose about 1% to their highest since February.

Market participants were weighing escalating trade war risks. US President Donald Trump unveiled his plan on Wednesday to implement 25% tariffs on imported cars and light trucks effective next week, while those on auto parts begin on May 3.

“The biggest headwind for oil right now are the concerns about tariffs, and tariffs might slow demand,” said Phil Flynn, senior analyst with Price Futures Group.

Trump on Tuesday imposed new 25% tariffs on potential buyers of Venezuelan crude.

India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports following the tariff announcement, sources said on Wednesday.

Asian bank DBS does not expect prices to return to the higher levels seen in early 2025 as uncertainty over US policy and the prospect of tariff wars weigh on demand, the bank’s energy sector team lead Suvro Sarkar said.

Data on US crude inventories on Wednesday showed tighter US supplies, as stockpiles fell by 3.3 million barrels last week versus expectations for a 956,000-barrel draw.

Meanwhile, the number of Americans filing new applications for unemployment benefits slipped last week.

(Reporting by Stephanie Kelly in New York and Enes Tunagur in London; Editing by Gareth Jones, Ros Russell, Rod Nickel, Diane Craft, and Kevin Liffey)

Long-term yields soar after auto tariffs, curve steepens

NEW YORK – US Treasury long-term yields rose to their highest levels in over a month on Thursday as investors weighed the inflationary impact of President Donald Trump’s latest tariff moves alongside fresh data showing continued economic resilience.

Trump unveiled late on Wednesday his plan to implement 25% tariffs on imported cars and light trucks effective next week, while the duties on auto parts are expected to begin from May 3. Investors are also bracing for a wave of reciprocal tariffs he plans to unveil next week, though the US president has hinted there may be room for flexibility in the final policy.

Meanwhile, in a sign the labor market is holding up, the number of Americans filing new applications for unemployment benefits slipped last week, while the jobless rate appeared to have held steady in March, Labor Department data showed on Thursday.

That data followed other strong readings earlier this week, including the services sector in S&P’s PMI index for March and the durable goods orders report for February, which were both stronger than anticipated.

“Yields are starting to feel a bit of a trend here as US economic data is coming in better than expectations,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management. “Maybe there is a bit of an inflation input priced in, but growth isn’t as bad as we thought.”

Treasury yields, which move inversely to prices, declined marginally after the release of fourth-quarter gross domestic product growth data.

While the headline figure was revised to 2.4%, higher than the consensus estimate of 2.3% in a Reuters poll, the data also showed consumer spending growth in the last three months of 2024 was revised lower by two-tenths of a percentage point to 4%. An analyst at BMO Capital Markets said in a note that the specifics within the fourth-quarter economic growth data were likely to tilt first-quarter GDP estimates lower.

But for the time being, the overall economic picture remained encouraging, said Ryan O’Malley, head of portfolio management at Ducenta Squared Asset Management.

“The economy is still growing at a fairly steady pace, inflation is still above target but growth remains positive,” he said.

Benchmark 10-year yields were last at about 4.371%, over three basis points higher than on Wednesday. They earlier hit an intra-day high of 4.4% – the highest level since February 24. Two-year yields, which more closely reflect market expectations for changes in monetary policy, were last at 4%, roughly one basis point lower on the day.

That meant the closely watched yield curve that plots the premium of 10-year yields over two-year yields widened to about 37 basis points, the widest since mid-January. The so-called bear steepening of the curve, bad for long-term bond prices, indicates the market expects interest rates to remain high due to ongoing resilience in the economy.

Longer-dated 30-year yields touched a high of 4.755%, the highest level since February 20.

The breakeven rate on five-year US Treasury Inflation-Protected Securities (TIPS) was last at 2.65%, versus 2.61% on Wednesday. The 10-year TIPS breakeven rate was last at 2.39%, up from 2.38% on Wednesday, indicating the market sees inflation averaging about 2.39% a year for the next decade.

On the supply side, the Treasury sold USD 44 billion seven-year notes on Thursday with a high yield of 4.233%, slightly higher than the market at the time of bidding, which suggests investors demanded higher compensation to absorb the issuance.

A two-year note sale on Tuesday was well-received, while a five-year note issuance on Wednesday also met lukewarm demand.

(Reporting by Davide Barbuscia; Editing by Paul Simao and Deepa Babington)

Hedge funds short Nvidia, Tesla and AMD, Morgan Stanley says

NEW YORK – Hedge funds are increasingly betting against stocks, with Nvidia, Advanced Micro Devices, and Tesla as their top three shorts placed on Wednesday, a Morgan Stanley note showed on Thursday.

Wednesday was the third largest day of single stock selling by hedge funds this year, according to the bank’s institutional equity division, led by the technology sector.

Hedge funds mostly added short positions, or bets that stock prices will fall, to their portfolios, although they also slightly trimmed long exposures, Morgan Stanley added.

The hedge funds’ move illustrates how hedge funds are becoming more bearish about the stock market after back-to-back years of gains of over 20% in the S&P 500. The index is down 2.6% this year, as concerns about US trade policy weigh.

Their targeted short bets on companies such as Nvidia and Tesla also underscore hedge funds seeing at least some of the once popular Magnificent Seven shares of the biggest US tech firms as expensive.

Except for Meta Platforms, shares in all other Mag-stocks are underperforming the S&P, with Elon Musk’s carmaker Tesla down over 31% this year, while Nvidia fell more than 16%. AMD, which is not part of that group, is down over 12%.

Still, Morgan Stanley showed funds unwound short bets on Apple and Alphabet on Wednesday.

Data analytics firm Ortex showed that overall short interest in the Magnificent Seven has picked up, although it remains lower than at the beginning of the year.

On Tuesday, short interest in the Magnificent Seven rose 8%, to 1.19%, to slightly retreat in the following day, according to Ortex. The uptick was mostly driven by additional bearish bets on Tesla, in which short interest is close to 3%.

Data from the European Automobile Manufacturers Association (ACEA) showed on Tuesday that Tesla’s market share in Europe continued to shrink in February as its sales dropped. Still, shares rose 3.45% on that day.

Hedge funds’ bearishness is not only concentrated in the United States. Portfolio managers net sold European construction materials-focused companies, as well as financials and energy.

(Reporting by Carolina Mandl in New York; Editing by Alison Williams, William Maclean)

Gold hits record high as US tariffs spark trade tensions

Gold scaled a record peak on Thursday, as investors sought the safe-haven asset in response to escalating global trade tensions and tumbling equity markets, following US President Donald Trump’s announcement of new auto tariffs.

Spot gold climbed 1% to USD 3,050.32 an ounce as of 01:40 p.m. ET (1740 GMT) after hitting an all-time high of USD 3059.30. Bullion has hit 17 record highs this year.

US gold futures climbed 1.3% to settle at USD 3,061, also hitting an all-time high of USD 3,071.30 earlier in the session.

“Looks like we’re going to see (gold futures hit) USD 3,100 here shortly, and the main catalyst is safe-haven buying,” driven by uncertainty around Trump’s tariff plans, said Bob Haberkorn, senior market strategist at RJO Futures.

Governments from Ottawa to Paris threatened retaliation after Trump unveiled a 25% tariff on imported vehicles, set to come into effect the day after he plans to announce reciprocal tariffs, aimed at the countries he says are responsible for the bulk of the US trade deficit.

Global stock markets fell as shares in some of the world’s biggest carmakers tumbled.

Gold is also seeing support from strong central bank inflows and ETF demand, said Phillip Streible, chief market strategist at Blue Line Futures.

Investors are now awaiting the US Personal Consumption Expenditures data due on Friday to gauge the trajectory for further rate cuts, after the Federal Reserve’s decision last week to hold its benchmark interest rate steady.

Gold is traditionally seen as a hedge against economic and political uncertainty and often thrives in a low-interest rate environment.

Goldman Sachs on Wednesday raised its end-2025 gold price forecast to USD 3,300 per ounce from USD 3,100, citing stronger-than-expected ETF inflows and sustained central bank demand.

Spot silver rose 1.7% to USD 34.27 an ounce after hitting their highest level since October 2024 earlier in the session.

Platinum was up 0.7% at USD 981 per ounce, and palladium added 0.3% to USD 971.25.

(Reporting by Anmol Choubey in Bengaluru; Editing by Shailesh Kuber, Maju Samuel, and Vijay Kishore)

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