Key Takeaways
- Gold prices surged nearly 1% to a record $4,474.53 per ounce, as geopolitical uncertainty and trade tensions drove investors toward safe-haven assets.
- Meta Platforms (META) has repeatedly delayed the release of its Muse Spark AI API, with the Wall Street Journal reporting no fixed date for its availability.
- The U.S. Trade Representative (USTR) has proposed 10% tariffs on Malaysia following a forced labor investigation, though Malaysian officials state no duties will be applied until a formal ruling is finalized.
- TSMC (TSM) leadership reaffirmed a focus on profitability and dismissed competitive threats from Intel (INTC), despite the latter's progress in advanced packaging technology.
- Analysts slashed price targets for healthcare and software leaders Medtronic (MDT) and Veeva Systems (VEEV), citing peer multiple contraction and cautious forward guidance.
Commodities and Regional Markets
Spot gold reached a historic high of $4,474.53 an ounce on Thursday, gaining nearly 1% as market volatility intensified. The rally comes amid a broader retreat in industrial metals, with Shanghai nickel futures plunging more than 3% in recent trading sessions. Investors appear to be rotating out of industrial commodities and into precious metals as global trade risks mount.
In Asia, the Singapore equity benchmark (STI) slipped 1.2% to 5,076.81 points. The decline reflects broader regional jitters following the latest U.S. trade proposals. Market participants are closely monitoring the impact of potential tariffs on export-heavy economies in Southeast Asia.
Trade and Geopolitics
The Malaysian trade ministry addressed concerns regarding a USTR investigation into forced labor allegations. While the U.S. has proposed an additional 10% duty on Malaysian products, the ministry clarified that tariffs will not be applied until a formal ruling is made. Malaysia intends to maintain ongoing engagement with U.S. officials across all levels to resolve the dispute.
The USTR's investigation is part of a broader Section 301 probe that could affect up to 60 economies. Malaysian officials emphasized that the U.S. has not yet reached a final tariff determination. The uncertainty surrounding these trade barriers has already begun to weigh on regional manufacturing sentiment.
Technology and Artificial Intelligence
Meta Platforms (META) is facing internal hurdles with its Muse Spark AI API. According to the Wall Street Journal, the company has delayed the release multiple times, leaving developers without a clear timeline for access. The delays raise questions about Meta's ability to quickly monetize its latest frontier AI models in a highly competitive landscape.
Meanwhile, TSMC (TSM) CEO C.C. Wei told shareholders that while customers are viewed as partners, maintaining profitability remains essential. The company's Co-COO also addressed Intel’s (INTC) EMIB packaging technology, calling it one of several "challenging" alternatives. TSMC remains confident in its market leadership, asserting it is "unafraid of competition" from rival foundries.
Analyst Actions and Corporate Earnings
Financial analysts are adopting a more conservative stance on several large-cap stocks. Needham lowered its target price on Medtronic (MDT) to $101, down from $120, despite the company beating Q4 earnings estimates. The cut reflects a broader contraction in valuation multiples across the medical device sector.
Similarly, Raymond James reduced its price target for Veeva Systems (VEEV) to $225 from $275. Although Veeva recently reported strong fiscal Q1 results, analysts remain wary of the company's long-term growth trajectory and peer valuations. Both companies are navigating a market environment where investors are demanding higher margins and more conservative guidance.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.