Market Overview: S&P 500 index futures fell 0.2%, gold surpassed $3,700

U.S. stocks may retreat from historical highs as traders reduce risk exposure at the start of a relatively quiet week on the event calendar. Gold prices have reached new highs.

S&P 500 futures fell 0.2%. Previously, the benchmark index hit a new high over the weekend due to market expectations of a series of interest rate cuts. European stocks were mostly flat. Asian markets rebounded as concerns eased over the Bank of Japan's plans to reduce its exchange-traded fund holdings.

With the Federal Reserve's first interest rate cut of the year, this week's data calendar appears thin, with the core inflation indicator preferred by policymakers set to be the main data highlight on Friday. Given that the Fed's dovish stance is largely influenced by a weakening labor market, next week's non-farm payroll report and the earnings season starting next month will become more significant catalysts.

Joachim Klement, a strategist at PamuL Lieberum, stated, "From a macro perspective, this week is overall the calmest of the month. With the earnings season ending, market movements may be swayed by rumors and market sentiment. Although the Fed has restarted interest rate cuts, investor optimism about the U.S. stock market's six-month outlook is growing, but we believe this is a manifestation of collective overconfidence."

Gold prices have surpassed $3,700 per ounce, with ETF inflows reaching a three-year high. Silver prices have also risen to their highest level since 2011. Low interest rates typically push up the prices of non-yielding precious metals, coupled with market expectations of nearly two more rate cuts this year, as well as safe-haven demand driven by geopolitical risks and trade tensions, gold prices have accumulated over a 40% increase in 2025.

Catherine Brooks, head of research at XTB Limited, noted, "As the world's oldest inflation hedge and with the Fed preparing to embark on a new round of monetary policy easing, gold is expected to continue to receive strong support."

Goldman Sachs strategist Sharon Bell believes European stocks will achieve a "moderate" increase.

Corporate News

Banco Sabadell has raised its acquisition offer from Banco de España by about 10% and proposed increasing the share payment ratio in an effort to persuade investors of the smaller competitor to accept the acquisition proposal.

Pfizer is set to finalize a deal to acquire obesity treatment startup Mesera for approximately $7.3 billion.

Reports indicate that Samsung Electronics has received approval from NVIDIA for the use of its advanced memory chips, a breakthrough that has driven Samsung's stock price up by over 5%.

Officials from the Trump administration plan to link the active ingredient in Tylenol to autism on Monday.

Following the release of Apple's latest iPhone, consumer buying frenzy has driven up the stock prices of its suppliers listed in Asia