US European Markets Edge Higher as Gold Slumps and Tech Stocks Rebound

• Tech sector leads recovery: Intel surges 7% post-earnings, boosting Nasdaq toward weekly gains.

• Gold prices decline 0.9% to $4,086.46 per ounce, marking the largest weekly drop since November 2024.

• Base metals rally, with copper nearing $11,000 per ton and aluminum hitting three-year highs at $2,883.50 per ton.

US stock markets open higher Friday amid tech recovery and metals gains, despite gold slump and oil volatility from sanctions. Stay informed on key economic shifts influencing global investments today.

What drove US markets to open higher on Friday?

US markets opened higher on Friday as traders adopted a cautious optimism following a turbulent week marked by inflation concerns, gold price slumps, and corporate layoffs. Dow futures dipped minimally by 0.04%, while S&P 500 and Nasdaq futures saw slight upticks of 0.06% and 0.2%, respectively, according to data from CNBC. This modest recovery reflects renewed interest in technology stocks ahead of critical US inflation reports.

How are tech stocks recovering amid broader market pressures?

Technology stocks spearheaded the rebound, with Intel shares jumping 7% in after-hours trading on Thursday after reporting stronger-than-expected third-quarter sales, drawing investor focus back to major tech firms. Target also edged higher following its announcement of an 8% corporate workforce reduction, the first significant layoffs in a decade. Other companies like Applied Materials and Rivian announced headcount cuts, contributing to a sector-wide adjustment. The major US indexes closed positively on Thursday, with the Dow Jones rising 0.3% or 144 points, the S&P 500 advancing 0.6%, and the Nasdaq Composite gaining 0.9%. These gains erased Wednesday’s losses and positioned the indexes for weekly increases: S&P 500 up 1.1%, Nasdaq and Dow each at 1.2%. Inflows into tech giants like Nvidia and Oracle underscored building momentum as earnings season intensifies, per market analyses.

Frequently Asked Questions

What impact are US sanctions on Russian oil companies having on global energy prices?

New US sanctions targeting Rosneft and Lukoil are prompting traders to anticipate supply disruptions, driving Brent crude prices up 7% to just under $66 per barrel, the highest since June, while West Texas Intermediate hovers below $62. This volatility adds to weekly market pressures but supports energy sector stability.

Why is the dollar strengthening affecting other currencies this week?

The dollar index rose 0.37% for the week to 99.04, marking its third consecutive session of gains and pressuring currencies like the euro, which fell 0.11% to $1.1606 and 0.4% weekly, and sterling, flat at $1.3322 but down 0.9% since Monday. This trend reflects investor shifts toward safe-haven assets amid economic uncertainties.

Key Takeaways

• Stable market open signals resilience: Minimal futures dips indicate traders’ reluctance to overreact before US inflation data, fostering a balanced start to the trading day.
• Tech and metals show strength: Intel’s earnings boost and base metals’ advances, including copper’s 0.6% rise to $10,919.50 per ton, highlight sector-specific optimism.
• Watch commodities and currencies: Gold’s 3.8% weekly decline and dollar gains underscore the need to monitor inflation and geopolitical risks for investment decisions.

Conclusion

Overall, US markets opening higher on Friday encapsulates a week of recovery amid tech stocks’ resurgence and metals’ upward trajectory, tempered by gold’s slump and oil’s sanction-driven surge. European indexes like the Stoxx 600 also climbed 0.3%, aligning with Wall Street’s cautious positivity. As inflation data looms, investors should track these dynamics for informed strategies, positioning for sustained growth in volatile conditions.

European markets mirrored the positive sentiment, with the pan-European Stoxx 600 advancing 0.3% at the close. The FTSE 100, DAX 40, and CAC 40 each rose about 0.1% in early sessions, while Italy’s FTSE MIB gained 0.3%. Broad sector gains emerged as earnings reports flowed in, encouraging selective re-entry by traders.

Commodities presented a mixed picture. Gold continued its downward trend, with spot prices falling 0.9% to $4,086.46 per ounce and on track for a 3.8% weekly loss—the steepest since November 2024. December US gold futures dropped 1.1% to $4,101.80. In contrast, base metals gained ground amid supply concerns and demand optimism. Copper’s three-month futures climbed over 1% to near $10,970 per ton in London trading, approaching last year’s record of $11,000. At press time, copper traded 0.6% higher at $10,919.50 per ton. Aluminum reached $2,883.50 per ton, its highest in over three years since May 2022, poised for a fourth straight weekly increase. Zinc and tin also posted advances during the session.

The strengthening dollar exacerbated pressures on global assets. Sitting at 99.04 after a 0.37% weekly rise, the index weighed on the euro to $1.1606—a 0.4% weekly decline—and kept sterling steady at $1.3322 despite a 0.9% drop from Monday. These currency movements, combined with earlier inflation fears and corporate downsizing, had initially soured sentiment, but Friday’s open suggested a pivot toward stability.