The Trump administration threatened more tariffs this weekend
Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) futures are pointed above breakeven this morning, while Nasdaq-100 Index (NDX) futures are lower. President Donald Trump threatened to impose a 100% tariff on Canadian goods if the country makes a trade deal with China, though Canadian Prime Minister Mark Carney said he had “no intention” of doing so.
Traders are also weighing a potential government shutdown after federal immigration agents fatally shot a second U.S. citizen in Minnesota, Alex Pretti, with several Democratic Senators refusing to clear a $1.2 trillion package if it includes Homeland Security funding. Earnings are in focus as well, with the Federal Reserve's interest rate decision due out this week.
- Intel stock's tumble from four-year highs.
- Recapping a volatile week on Wall Street.
- Plus, government takes USA Rare Earth stake; NEM surging alongside gold prices; and why UAL is lower.
5 Things You Need to Know Today
- The Cboe Options Exchange saw over 2.6 million call contracts and more than 1.5 million put contracts traded on Friday. The single-session equity put/call ratio rose to 0.58, while the 21-day moving average remained at 0.58.
- Shares of USA Rare Earth Inc (NASDAQ:USAR) are 21.1% higher premarket, following news that the Trump administration took a massive stake in the company. In exchange for a $1.3 billion loan as well as $277 million in federal funding, the rare earths miner will issue the Commerce Department 16.1 million shares in addition to 17.6 million in warrants. USAR already boasts a 109% year-over-year lead.
- Newmont Corporation (NYSE:NEM) stock is up 4.1% before the bell, as gold prices continue to notch record highs amid higher demand for safe-haven assets. Earlier today, the yellow metal topped $5,100 for the first time. NEM has tacked on 130.5% over the last nine months.
- United Airlines Holdings Inc (NASDAQ:UAL) shares are down 1.2% in electronic trading, as the sector struggles with flight cancellations and delays related to Winter Storm Fern. UAL still sports a 58% nine-month lead.
- The Federal Reserve's interest rate decision is on tap this week.
Geopolitics Weigh on Asian, European Bourses
Asian markets finished mostly lower today, as traders evaluated ongoing geopolitical concerns. Focus remained on Japan, after Prime Minister Sanae Takaichi warned that authorities are prepared to step in against speculative market moves after Friday’s yen surge. Japan’s Nikkei declined 1.8%, Hong Kong’s Hang Seng added 0.06%, South Korea’s Kospi sank 0.8%, and China’s Shanghai Composite fell 0.09%.
European bourses are a mixed bag, as investors weigh geopolitical developments. At last look, the French CAC 40 is down 0.2%, while London’s FTSE 100 is up 0.2%, and the German DAX is down 0.06%.