Stock rally cools at Asian open, gold below $4,000

The record-setting advance in global equities took a breather in early Asian trading Tuesday, as markets braced for a flurry of megacap technology earnings and policy announcements from major central banks this week.

Equity gauges in Japan and South Korea retreated from record highs set Monday, while shares in Australia also fell at the open. US indexes closed at all-time highs as Chinese and US trade negotiators lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week. An index of US-listed Chinese shares rose 1.6%.

Gold steadied after slumping more than 3% to trade below $4,000 an ounce while a gauge of the dollar edged lower for a second day. Technology stocks will be in focus after Amazon.com Inc. planned to cut as many as 30,000 jobs, Reuters reported. Treasuries inched higher early Tuesday.

Easing trade tensions had boosted appetite for risk while American companies appeared fairly unscathed by tariffs, with firms protecting margins through price hikes and cost cuts. That optimism faces a reality check this week as investors look to the Federal Reserve meeting for clues on the path of rate cuts, while major technology firms including Amazon.com and Microsoft Corp. reveal whether earnings momentum can be sustained.

“With the Fed on track to cut rates, extending the run would appear to hinge on this week’s lineup of high-profile earnings releases,” said Chris Larkin at E*Trade from Morgan Stanley. “And it may, barring any surprises in US-China trade negotiations.”

The S&P 500 topped 6,875 — notching its best three-day rally since May. Qualcomm Inc. shares rose to their highest price in 15 months after unveiling chips and computers for the lucrative AI data center market, aiming to challenge Nvidia Corp. in the fastest-growing part of the industry.

On Wednesday and Thursday, five firms that account for about a quarter of the US benchmark — Microsoft Corp., Alphabet Inc., Meta Platforms Inc., Amazon.com and Apple Inc. — will report results. A gauge of the “Magnificent Seven” megacaps jumped 2.6%.

On trade, Trump told reporters on Monday that “I really feel good” about a deal with China, after officials unveiled a slew of agreements to ease tensions.

While markets cheered the latest developments, some analysts cautioned the deal now teed up for Trump and Xi to sign in South Korea ignored thorny issues.

Fundamental fights over national security appeared untouched, they said, along with Trump’s stated core mission of rebalancing trade. Making that harder, Chinese investment into America remains heavily restricted.

“While these developments have lifted market spirits, analysts remain skeptical that the underlying issues — such as national security and tech competition — will be fully resolved,” said Fawad Razaqzada at City Index and Forex.com. “Nevertheless, traders have embraced the risk-on mood.”