Dow Jones Update: Stock Futures Dip as Geopolitical Risks Rise; Gold Hits $5,000 Ahead of Fed & Big Tech Earnings

Stock futures pointed to a weaker open Monday as Wall Street braced for a packed week of tech earnings and the Federal Reserve’s policy decision, while gold futures surged past $5,000 an ounce for the first time.

Nasdaq 100 futures fell 0.2% and S&P 500 futures dipped 0.1%, while Dow Jones Industrial Average futures hovered near flat. The three major indexes logged their second consecutive losing week after a mixed close Friday.

Markets were rattled by President Donald Trump’s threat of a 100% tariff on Canadian imports if Prime Minister Mark Carney strikes a deal with China, alongside the risk of a U.S. government shutdown after Senate Democrats rejected a funding package tied to Homeland Security provisions following a deadly protest in Minneapolis.

Gold futures climbed above $5,000 amid geopolitical tensions, trading near $5,090 after briefly topping $5,100. Silver futures spiked 9% to a record above $110.

The U.S. dollar index slipped 0.5% to 97.15, weakening further against the yen as officials in Washington and Tokyo signaled readiness to intervene.

Treasury yields edged lower, with the 10-year note at 4.22%, while Bitcoin traded around $87,900 after overnight lows near $86,000. West Texas Intermediate crude futures ticked up to $61.15 a barrel.

Airline stocks, including Delta, United, American, and Southwest, traded lower after storms forced more than 20,000 flight cancellations nationwide over the weekend and into Monday.

Intel shares dropped 1.5% in premarket trading after a 17% plunge Friday, as the chipmaker warned of weak supply and issued a soft outlook.

USA Rare Earth stock surged over 20% before the bell after securing $1.6 billion in federal funding and $1.5 billion in private investment, issuing millions of shares and warrants to the Commerce Department as part of the deal.

USA Rare Earth (USAR) surged 21% in premarket trading after confirming a non-binding agreement with the U.S. Department of Commerce. The deal grants the agency 16.1 million shares and 17.6 million warrants in exchange for $1.6 billion in federal funding, signaling strong government backing for the Stillwater, Oklahoma-based company.

The company also raised $1.5 billion in private investment through a PIPE transaction led by Inflection Point, with participation from major mutual fund groups. Executives highlighted the strategic importance of USAR’s mine-to-magnet platform in closing the rare earth and critical mineral supply gap vital to U.S. national security, semiconductors, advanced manufacturing, and other critical technologies.

Reports over the weekend indicated the Trump administration planned to secure a 10% stake in USAR, fueling a 35% rally earlier Monday. Shares have more than doubled in 2026, opening the week at $24.77 apiece.

Bill Gates has cautioned investors that the AI sector is becoming “hypercompetitive,” warning that not all companies will emerge as winners. The Microsoft (MSFT) cofounder told CNBC in December that a “reasonable percentage” of today’s expensive AI stocks cannot justify their valuations, adding that some will inevitably decline.

His remarks come as hyperscalers including Microsoft, Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META), and Oracle (ORCL) poured $400 billion into infrastructure in 2025, with spending expected to rise by another third in 2026. Gates, speaking at Abu Dhabi Finance Week and later at Davos, emphasized that stretched valuations could leave investors exposed if speculation continues to drive prices higher.

Market analysts note that the sheer scale of hyperscaler investment has fueled Wall Street enthusiasm, but also heightened concerns that AI stocks are trading at unsustainable levels. Gates’ warning underscores the risks of chasing momentum in a sector where valuations may not align with long-term fundamentals.

Wall Street is entering the week under pressure, with stock futures subdued and safe-haven assets surging. Geopolitical risks from Trump’s tariff threats to shutdown fears are weighing on sentiment, while gold and silver hit historic highs as investors seek shelter. With the Fed decision and Big Tech earnings looming, markets are bracing for volatility that could set the tone for the weeks ahead.