US Stock Market Outlook: Tensions in Trade, Futures Drop, Precious Metals Rise

US Stock Futures Decline Ahead of Market Open

As of Tuesday morning, all three major US stock index futures are down. The Dow futures have dropped by 1.24%, Nasdaq futures by 1.69%, and S&P 500 futures by 1.38%.

Major Tech Stocks Underperform

Prominent tech stocks are experiencing declines in pre-market trading.

Google (GOOGL), Amazon (AMZN), and Meta Platforms (META) have all fallen over 2%. Tesla (TSLA), Nvidia (NVDA), and AMD are down nearly 2%.

Chinese Stocks Struggle

Most Chinese stocks are also weak in pre-market trading.

Pinduoduo (PDD) has dropped over 4%, Xpeng Motors (XPEV) nearly 3%, and Alibaba (BABA) close to 2%. JD.com (JD) and TSMC (TSM) have seen slight declines, while UMC (UMC) has surged over 14%.

Gold and Silver Mining Stocks Rise

Gold mining stocks are generally up, with spot gold surpassing $4737 per ounce.

Iamgold (IAG) has risen nearly 8%, Harmony Gold (HMY) by almost 6%, and Pan American Silver (PAAS) by nearly 5%.

AppLovin Faces Major Drop

AppLovin (APP) has plummeted over 7% after Capital Watch reported systemic compliance risks and significant financial crime allegations within its core capital structure.

Oracle and Netflix Updates

Oracle (ORCL) is down over 2% due to a lawsuit from bondholders regarding undisclosed debt increases for AI infrastructure. Conversely, Netflix (NFLX) has gained over 1% after revising its acquisition offer for Warner Bros Discovery (WBD) to a cash-only deal at $27.75 per share.

Other Notable Movements

CoreWeave (CRWV) is down nearly 5% amid concerns over its high-leverage business model. RAPT Therapeutics (RAPT) has surged nearly 64% following GlaxoSmithKline's (GSK) acquisition announcement at $58 per share.

UMC has also seen a significant rise of over 14% due to the launch of its new embedded SuperFlash technology.

Global Economic Developments

Davos Forum Highlights

The world is focused on the upcoming Davos Forum, scheduled for January 19-23, with a record attendance expected.

Trump's Greenland Ambitions

President Trump reiterated his ambition to acquire Greenland, causing a stir among NATO allies and EU leaders.

EU's Response to US Tariffs

Denmark's economy minister stated that the EU is prepared to impose counter-tariffs on US goods worth €93 billion in response to Trump's threats.

Treasury Secretary's Remarks

US Treasury Secretary Mnuchin dismissed claims of European selling of US debt as "false narrative" and confirmed that Trump may announce a new Federal Reserve chair soon.

Conclusion

The market is facing significant volatility with various factors influencing stock performance, including geopolitical tensions and economic policies. Investors are advised to stay informed and cautious.