US stock futures traded flat on Wednesday after a record-setting session for the Dow as investors looked to the next wave of earnings highlighted by Tesla (TSLA). Futures on the Dow Jones Industrial Average futures (YM=F) and the S&P 500 (ES=F) were little changed, while contracts on the tech-heavy Nasdaq 100 (NQ=F) slipped 0.1%. Netflix (NFLX) stock dropped more than 6% in premarket trading after the streaming giant's earnings missed expectations for profit and revenue. Shares in Mattel (MAT) fell about ...

Core Insights - Gold experienced its largest one-day percentage decline in a dozen years, dropping as much as 6% to approximately $4,120 per troy ounce after reaching an all-time high of nearly $4,400 [1][8] - Silver also saw a significant drop, falling over 8% to a low of $48.40 per troy ounce [2] - Despite the recent decline, gold remains up more than 50% for the year, with silver up 68% [3][6] Market Context - The rally in precious metals has been driven by global trade tensions, inflation concerns, and economic uncertainty, exacerbated by the ongoing U.S. government shutdown and fears of unsustainable global government debt [2][4] - Citi Research indicated that a resolution to the government shutdown and a potential U.S.-China trade deal could lead to a consolidation of gold prices in the coming weeks, maintaining a price target of $4,000 for the next 0-3 months [4] Investor Sentiment - The sharp decline in gold prices may reflect profit-taking by investors following substantial gains in precious metals this year [6] - The upcoming inflation report from the Bureau of Labor Statistics, delayed due to the government shutdown, may also be influencing market sentiment and gold's appeal as a safe-haven asset [7]

Kyle Mitchell tells MarketWatch it took him and some paid helpers more than four months to acquire the 5 million coins, which weigh almost 30 tons. ...

RT The Rollup (@therollupco)"If you were holding gold as a hedge against inflation from 1980 to 2019, you literally lost money against inflation."@scottmelker on why gold's current run is just a reversion catch-up trade. https://t.co/keXohQxnxd ...

Group 1: Market Overview - Gold experienced a significant decline of 6%, marking its largest drop since August 2020 and the second largest since 2013, following a year-to-date gain of nearly 70% [1] - U.S. stocks showed mixed performance, with the global momentum that had previously lifted several indices to new highs fading as investors reacted to the sharp fall in gold prices and ongoing U.S. government shutdown [5] - The mood at the IMF/World Bank meetings was less optimistic, with concerns over trade tensions and tariffs impacting market sentiment [1] Group 2: U.S.-China Trade Relations - Investors are optimistic that U.S.-China trade tensions will ease, as both nations appear to be stepping back from aggressive rhetoric and are likely to reach a mutually beneficial agreement [2] Group 3: Currency and Economic Interventions - The U.S. government has engaged in its first unilateral foreign exchange intervention to support the Argentine peso, a move that is unprecedented in the context of emerging market currencies [10][12] - The intervention is part of a broader strategy to support Argentina's economy, which has been characterized by significant volatility and economic challenges [9][12] - Argentina's economic situation remains precarious, with high inflation and a substantial debt to the International Monetary Fund, raising questions about the long-term effectiveness of U.S. support [16][17] Group 4: Argentina's Economic Policies - Argentina's new president, Javier Milei, has implemented aggressive reforms, including spending cuts and deregulation, which have led to a decrease in inflation from over 200% to 32% [17] - Despite these reforms, the country is facing renewed currency crisis pressures, with expectations of a potential devaluation of the peso [19]

The consumer-price index was above the 2.2% annual inflation economists had expected. ...

Core Insights - Rachel Reeves is facing a £28.5 billion increase in debt payments due to rising inflation, which is significantly higher than previous estimates [1][2][5] - Inflation in Britain has reached 4%, double the Bank of England's target, leading to increased scrutiny of the government's decision to link a large portion of its debt to inflation [2][3] - The growing cost of debt interest is expected to create challenges for the Chancellor as she attempts to address a £30 billion shortfall in public finances ahead of the upcoming Budget [7][8] Debt Servicing Costs - Interest payments on inflation-linked bonds are projected to total £28.5 billion this year, which is £2 billion more than earlier estimates and four times the forecasts from two years ago [2][6] - The Office for Budget Responsibility (OBR) had initially predicted a decrease in inflation-linked debt servicing costs to £7 billion for 2025-26, but this forecast has been revised upwards due to persistent inflation [5][6] - If inflation continues to exceed expectations, additional costs of £1.4 billion to £2.3 billion may be incurred, further straining public finances [6][7] Government Response and Criticism - The government's strategy of linking a significant portion of its debt to inflation has drawn criticism, especially as around 25% of UK gilts are tied to price increases compared to only 10% in the US and France [3] - Recent tax increases and minimum wage hikes have been cited as contributing factors to rising inflation, complicating the government's efforts to manage public finances [4][6] - The shadow Chancellor has criticized the current government for soaring borrowing levels, suggesting a loss of control over public finances [9]

The Dow closed at a fresh record on Tuesday as Wall Street welcomed the latest wave of quarterly results from the likes of General Motors (GM) and Coca-Cola (KO). Gains for the Dow Jones Industrial Average (^DJI) lifted the blue-chip benchmark 0.5%. Meanwhile, the S&P 500 (^GSPC) closed the session little changed, and the Nasdaq Composite (^IXIC) slipped roughly 0.1%. Investors are focused on the flood of major earnings reports due this week, headlined on Tuesday by streaming giant Netflix (NFLX) and GM ...

Bitcoin and Ethereum rose on Tuesday as gold’s price headed toward its biggest daily drop in over a decade, indicating renewed appetite for risk-taking among investors. Bitcoin was recently trading around $112,000, a 1% increase over the past day, according to CoinGecko. The largest crypto by market capitalization climbed as high as $114,000 earlier in the day. Ethereum, the second largest crypto by market value, was trading at about $4,000, a 0.7% gain over the same period of time. Ethereum traded as high ...

Core Insights - The recent market dynamics have been labeled as the "debasement trade," driven by concerns over budget deficits, high inflation, and the declining dominance of the US dollar [2][5]. Group 1: Market Dynamics - Investors are increasingly purchasing hard assets such as gold, silver, and cryptocurrencies, which are perceived as beneficiaries of a weakening dollar and persistent inflation [3]. - The selling side of the debasement trade includes a decline in currencies and government debt, particularly noted in Japan with the yen and sovereign bonds selling off due to political changes [4]. - Central bank stimulus globally is reinforcing the debasement narrative, as low interest rates and money printing raise inflation concerns [5]. Group 2: Inflation and Interest Rates - Rising inflation may lead to rate hikes, which could heighten concerns over sovereign debt, although the sell side of the debasement trade is not as pronounced in the US, where Treasurys have been rallying [6].