By Johann M. Cherian and Pranav Kashyap (Reuters) – US stock index futures saw an uptick on Friday, signaling a break in the week-long decline driven by concerns over a slowdown in growth due to the unpredictable trade policies of the Trump administration. Meanwhile, gold stocks surged as the precious metal crossed the $3,000 mark. The global financial scene experienced volatility throughout the week, with the S&P 500 entering correction territory and shedding $4 trillion. Investor interest turned to safe-haven assets, with gold reaching an unprecedented milestone. US-listed gold mining stocks also saw gains in premarket trading, with Barrick Gold increasing by 1.3% and Gold Fields up by 2%. According to Paul Williams, managing director of Solomon Global, the surge in gold prices is a direct reaction to escalating trade tensions and the resulting economic uncertainty. Concerns about the ramifications of President Trump’s tariff policies have clouded investment outlooks, potentially leading to high inflation and sluggish growth in the US economy. The ongoing trade disputes have sparked retaliatory actions from Canada and the European Union, with the possibility of additional reciprocal tariffs looming. Several brokerages have downgraded US stocks, and numerous companies have issued pessimistic forecasts citing economic uncertainties. All three major indexes are on course for weekly losses, with the benchmark index heading for its lengthiest weekly downturn in seven months. At 07:28 a.m. ET, Dow E-minis were up by 197 points, S&P 500 E-minis rose by 40.5 points, and Nasdaq 100 E-minis gained 191 points. The recent market downturn has pushed US stock valuations down, with various technical indicators indicating that the S&P 500 has entered oversold territory. Analysts are optimistic about a potential rebound in US equities. Large-cap and chip stocks, which were hit hard by the recent decline, saw gains. Tesla bounced back by 1.7% after a 3% drop the previous day. The company announced plans to introduce a more affordable version of its popular Model Y in Shanghai to recapture market share in China. The US Senate was close to passing a temporary spending bill to avoid a government shutdown following a standoff over Trump’s efforts to reduce the federal workforce. In terms of upcoming events, the University of Michigan’s consumer sentiment survey is expected to be released at 10 a.m. ET. Economists anticipate a further decline in the index. The Federal Reserve’s upcoming policy decisions are also in focus, with traders predicting that interest rates will remain unchanged. Crown Castle saw a 7.4% jump after announcing the sale of its fiber assets for $8.5 billion, a move influenced by activist investor Elliott Investment Management. (Reporting by Johann M. Cherian and Pranav Kashyap in Bengaluru; Editing by Pooja Desai)
