BY COMFORT OGBONNA
U.S. stock futures moved lower on Friday while European markets opened higher, reflecting a cautious and uneven global trading session as investors digested weakness across Asian markets and awaited a possible announcement from President Donald Trump on his nominee to replace Jerome Powell as chair of the Federal Reserve. The prospect of a change at the top of the U.S. central bank has added a fresh layer of uncertainty to markets already grappling with geopolitical risks, trade tensions and stretched equity valuations.
Futures tied to the S&P 500 dropped 0.8%, while contracts for the Dow Jones Industrial Average fell 0.7%, signaling a weaker open for Wall Street. Investors remain wary of how a shift in Federal Reserve leadership could influence monetary policy, especially after years of friction between Trump and Powell over interest rate decisions. Trump appointed Powell in 2017 but has repeatedly criticized him for not cutting rates as aggressively as the administration desired. Any replacement would still require confirmation by the U.S. Senate, but speculation alone has been enough to weigh on sentiment.
In contrast, European equities found some support early in the session. Germany’s DAX climbed 0.8% to 24,506.41, France’s CAC 40 gained 0.4% to 8,107.50, and Britain’s FTSE 100 edged up 0.2% to 10,189.05. The firmer European open suggested investors there were more focused on regional factors and relative value after recent volatility elsewhere.
Asian markets, however, broadly retreated, with notable moves across several major economies. In China, stocks pulled back sharply. Hong Kong’s Hang Seng Index slid 2.1% to 27,387.11, dragged down in part by shares of CK Hutchison Holdings, which plunged 4.6% after Panama’s Supreme Court ruled that a concession held by one of its subsidiaries to operate ports at both ends of the Panama Canal was unconstitutional. The decision advanced U.S. efforts to limit Chinese influence over the strategic waterway and underscored rising geopolitical frictions that continue to ripple through global markets. On the mainland, the Shanghai Composite Index fell 1% to 4,117.95.
Japan’s market also softened, with the Nikkei 225 slipping 0.1% to 53,322.85. Losses were concentrated in technology-related stocks tied to artificial intelligence, a sector that has powered much of the market’s recent gains. Testing equipment maker Advantest dropped 4.5%, while chip equipment manufacturer Disco Corp. fell 1.7%, reflecting profit-taking and growing caution toward high-flying AI plays.
South Korea’s Kospi managed a marginal gain of 0.1% to 5,224.36 but finished well off its earlier highs. Sentiment cooled after local media reported that the first day of talks with U.S. Commerce Secretary Howard Lutnick aimed at easing trade tensions had failed to produce an agreement. Negotiations are set to continue, but uncertainty remains elevated, especially after Trump earlier in the week warned that tariffs on South Korean exports could be raised if a previously negotiated trade deal is not swiftly ratified.
Elsewhere in the region, Australia’s S&P/ASX 200 declined 0.7% to 8,869.10, Taiwan’s benchmark index dropped 1.5%, and India’s Sensex slipped 0.3%, adding to the generally cautious tone across Asia.
Indonesia stood out as a rare bright spot. Jakarta’s benchmark index gained 1.2% after the chief executive of the country’s stock exchange, Imam Rachman, resigned, citing a commitment to addressing recent market conditions. The market had been trading at record highs before tumbling 7.4% on Wednesday and a further 1.1% on Thursday, following warnings from MSCI about risks including a lack of transparency. Investors appeared to welcome the leadership change as a step toward restoring confidence.
On Wall Street, trading on Thursday was relatively subdued despite sharp intraday swings. The S&P 500 ended down 0.1% after briefly hovering near a record high earlier in the day before sliding as much as 1.5%. The Dow Jones Industrial Average inched up 0.1%, while the Nasdaq composite fell 0.7%, weighed down by technology shares.
Beyond equities, commodities saw notable moves. Gold prices slid 5% early Friday after briefly surging to nearly $5,600 an ounce the previous day, following a powerful rally that pushed the metal above $5,000 for the first time earlier in the week. Silver, which had also been soaring, suffered an even sharper pullback, tumbling 11%. Despite the drop, precious metals remain up significantly, having benefited from demand for safer assets amid concerns about expensive equity markets, political instability, tariff threats and heavy government debt worldwide.
Oil prices also moved lower after strong gains a day earlier. U.S. benchmark crude fell 59 cents to $64.83 per barrel, while Brent crude slipped 61 cents to $68.98 per barrel. On Thursday, prices had jumped more than 3% on worries that escalating tensions between the United States and Iran could disrupt crude supplies. Those concerns were reinforced by comments from Defense Secretary Pete Hegseth, who said the U.S. military would be prepared to act as directed by the president, shortly after Trump urged Iran to “make a deal” on its nuclear program.
Currency markets reflected similar crosscurrents. The U.S. dollar, which has weakened over the past year amid many of the same risks that boosted gold, traded at 154.14 Japanese yen, up from 153.09 yen. The euro eased to $1.1922 from $1.1971.
Looking ahead, investors are expected to keep a close eye on developments at the Federal Reserve, particularly any signal about who may lead the central bank next. Corporate earnings will also remain a major driver of market direction in the days ahead, as companies face mounting pressure to justify lofty stock prices by delivering solid profit growth.
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