US stocks slump during opening trade amid renewed trade war fears

Haresh Menghani FXStreet

Major US equity indices slumped during the opening hour of trade on Thursday amid signs of escalating US-China trade tensions.

Fears of a full-blown trade war between the world's two largest economies returned to the spotlight after the US President Donald Trump proposed 25% tariffs on $200 billion worth of Chinese imports, up from an original 10%.

Subsequent response from Beijing, saying that it was ready to escalate the trade war added to the latest development in the trade battle and rattled global financial markets, overshadowing a batch of better-than-expected corporate results.

As has been the case in the recent past, shares of trade-sensitive companies were hit the most, with a decline in the so-called FAANG group of stocks further collaborating to the early weakness.

Today's decline comes after the Fed's upbeat outlook for the domestic economy, which reaffirmed expectations that the central bank will raise interest rates at least two more time by the end of this year.

On the economic data front, the US initial weekly jobless claims rose by 1,000, albeit remained near their lowest levels since the 1970s as market focus turns to Friday's highly anticipated monthly jobs report.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD bulls seem hesitant above 0.6950 amid Mideast jitters

AUD/USD struggles to capitalize on the previous day's bounce from the weekly low, consolidating above mid-0.6900s during the Asian session on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. However, geopolitical risks and a hawkish Fed limit deeper losses for the safe-haven buck, capping spot prices amid receding RBA rate hike bets.

USD/JPY retakes 158.00 after Japan's weak Household Spending data

USD/JPY reclaims 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties. This, along with BoJ rate-hike bets and intervention fears, limits JPY losses and keeps the pair confined in a familiar range.

Gold extends range play around $4,150 as bullish USD undertone caps gains

Gold trades with a positive bias for the second straight day on Friday, though it lacks bullish conviction and remains confined in a range held over the past two weeks or so. The overnight decline in US bond yields keeps the US Dollar depressed below an 18-month high, allowing the non-yielding bullion to recover further from a two-month low. However, the Fed's hawkish outlook and Iran risks favor USD bulls, capping the commodity.

Hyperliquid drops to $84 as Hyperliquid Labs begins $330 million OTC distribution

Hyperliquid Labs distributed 3.75 million HYPE tokens, worth about $330 million, through an over-the-counter (OTC) arrangement with an undisclosed institution, rather than selling the tokens on public exchanges. According to onchain data shared by OnchainLens on Wednesday, the tokens completed a seven-day unstaking period before the full allocation was credited to Hyperliquid Labs’ spot balance.

War should be bullish for Gold. Right now it's capping it

Oil is up by more than a third since the US and Israel went to war with Iran on February 28. Gold is down by about a fifth over the same stretch. The war reaches Gold through the Federal Reserve (Fed) rather than through fear. Every jump in Oil adds to the case for higher US interest rates, and higher rates make a metal that pays nothing more expensive to hold.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.