Stocks Slip From Post-Fed High as Gold Hits Record: Markets Wrap

(Bloomberg) — US stocks are set to pull back from all-time highs as traders search for new catalysts to drive markets at the start of a relatively quiet week on the event calendar. Gold hit a fresh record.

Futures for the S&P 500 slipped 0.3% after interest-rate cut optimism pushed the benchmark to a fresh high at the end of last week. Cryptocurrencies sank as traders saw more than $1.5 billion in leveraged long positions liquidated. Porsche AG fell the most on record after scaling back its electric-vehicle plans. The dollar and US Treasuries were little changed.

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After the Federal Reserve cut rates for the first time this year, this week’s data calendar looks thin, with Friday’s release of policymakers’ preferred gauge of underlying inflation the main item. With the central bank’s dovish stance largely shaped by a weakening labor market, next week’s payrolls report looms as the bigger catalyst, alongside the start of the earnings season next month.

“This week is overall the calmest week of the month on the macro front and with the earnings season over, markets will likely drift on hearsay and sentiment,” said Panmure Liberum strategist Joachim Klement. “Investors are increasingly bullish on the six-month outlook for US stock markets as the Fed has restarted its cuts, but we think this is a case of collective overconfidence.”

Gold powered past $3,700 an ounce as ETF inflows hit a three-year high. Silver rose to the highest since 2011. With lower rates typically boosting non-interest bearing precious metals, market bets for almost two more cuts this year — alongside haven demand from geopolitical risks and trade tensions — have fueled a rally of more than 40% in bullion for 2025.

“As the world’s oldest inflation hedge and with the Fed poised to embark on another monetary policy loosening cycle, gold is likely to remain well supported,” said Kathleen Brooks, research director at XTB Ltd.

Friday’s personal consumption expenditures price index, excluding food and energy, is expected to slow down in August, giving the Fed more room to address labor market weakness. Traders will also parse remarks from several Fed officials, including Chair Jerome Powell on Tuesday and new Governor Stephen Miran.

The speakers will likely “give their own spin on a complicated FOMC last week where the dots were a little all over the place,” wrote Jim Reid, global head of macro research and thematic strategy at Deutsche Bank AG. “The global flash PMIs tomorrow will be the other main highlight, but it’s not likely to be a major mover with most main economies seemingly fairly stable at the moment.”

Corporate News:

Pfizer Inc. agreed to buy the obesity startup Metsera Inc. for an enterprise value of about $4.9 billion as it seeks to catch up in a booming market after terminating the development of its own weight-loss pill for safety reasons. Oracle Corp. would recreate and provide security for a new US version of TikTok’s algorithm under a deal taking shape to sell the popular Chinese-owned app to a consortium of American investors, a White House official said. Oracle promoted two executives, Clay Magouyrk and Mike Sicilia, to the joint role of chief executive officer. Safra Catz, who has led the company since 2014, will become the executive vice chair of the board. Kenvue Inc. extended losses in premarket trading, following a Washington Post report that the Trump administration plans to link the active ingredient in Tylenol to autism Monday. Treasuries and the dollar were little changed. Compass Inc. and Anywhere Real Estate Inc. struck a deal to merge, building a company with a roughly $10 billion enterprise value and cementing Compass’s status as the largest residential brokerage in the US. T-Mobile US Inc. will elevate its chief operating officer, Srini Gopalan, to the chief executive officer spot on Nov. 1, replacing Mike Sievert, who has held the job for nearly six years BBVA SA has increased the value of its takeover bid for Banco Sabadell by about 10%, offering more of its shares as it looks to convince investors in its smaller rival to accept its offer. BYD Co. shares dropped the most in three weeks after a report that Warren Buffett’s investment firm offloaded its stake in the Chinese electric-vehicle maker. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.3% as of 8:18 a.m. New York time Nasdaq 100 futures fell 0.4% Futures on the Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 was little changed The MSCI World Index was little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.3% to $1.1777 The British pound rose 0.2% to $1.3494 The Japanese yen was little changed at 147.88 per dollar Cryptocurrencies

Bitcoin fell 2.3% to $112,712.36 Ether fell 6.5% to $4,188.61 Bonds

The yield on 10-year Treasuries was little changed at 4.13% Germany’s 10-year yield was little changed at 2.74% Britain’s 10-year yield declined one basis point to 4.70% Commodities

West Texas Intermediate crude fell 0.6% to $62.30 a barrel Spot gold rose 0.9% to $3,718.95 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sagarika Jaisinghani.

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