đź“° U.S. Stocks Slide as Gold Surges Amid Rising Trade Tensions
Wall Street stocks turned sharply lower on Tuesday, while Treasury yields slipped as renewed trade tensions between Washington and Beijing, combined with the ongoing U.S. government shutdown, weakened investor confidence.
All three major U.S. indexes fell deep into negative territory in early trading. Tech giants dragged the Nasdaq lower, crude oil prices declined, and gold — the ultimate safe-haven asset — surged above the $4,100 mark.
Losses were trimmed later in the day after a report from the International Monetary Fund (IMF) raised its global growth forecast. The IMF said that tariff shocks and financial conditions have been less severe than expected, though it warned that a prolonged U.S.-China trade war could still slow global output.
“Investors are eager to take profits and protect their gains,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. “The recent sell-off reminds markets that trade disputes and global instability remain key risks, especially with the government shutdown limiting access to key data.”
🔥 Trade War Escalates Between Washington and Beijing
On Tuesday, the United States and China imposed new tit-for-tat port fees, escalating tensions further. The trade war, which has shaken global markets throughout the year, intensified last week when China tightened controls on rare earth exports. President Donald Trump responded by threatening to raise tariffs on Chinese imports to triple-digit levels.
Despite the tension, investors appeared to overlook the start of the third-quarter earnings season, with major U.S. banks such as JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo posting largely positive results.
Meanwhile, the ongoing government shutdown continues to delay official economic data releases. However, a report from the National Association of Independent Business (NFIB) revealed that small business sentiment weakened as inflation fears returned.
📉 Market Performance: Wall Street and Global Indices
- Dow Jones Industrial Average: fell 59.24 points (0.13%) to 46,008.34
- S&P 500: dropped 34.74 points (0.52%) to 6,619.98
- Nasdaq Composite: lost 229.87 points (1.01%) to 22,464.74
Across the Atlantic, European markets also retreated. Renewed U.S.-China tensions and disappointing guidance from Michelin, which cut its annual forecast, pushed the STOXX 600 down 0.35%, while the FTSEurofirst 300 slipped 0.32%.
Global sentiment was broadly negative, with MSCI’s world index falling 0.53% to 975.92. Emerging markets and Asian shares mirrored the decline — Japan’s Nikkei dropped 2.58%, and MSCI Asia-Pacific ex-Japan fell 1.08%.
đź’° Treasury Yields and Commodities
Treasury yields eased but recovered from earlier lows after the IMF’s growth update calmed some fears.
- 10-year yield: down 0.7 bps to 4.044%
- 30-year yield: up 0.6 bps to 4.6397%
- 2-year yield: down 2.1 bps to 3.502%
Oil prices weakened on trade worries and a new International Energy Agency (IEA) report forecasting increased supply and reduced demand.
- U.S. crude: down 1.92% to $58.35
- Brent crude: down 2.02% to $62.04
🪙 Dollar, Cryptocurrencies, and Gold
The U.S. dollar slipped as investors sought safety in the Swiss franc and Japanese yen. The dollar index fell 0.11% to 99.19, while the euro gained 0.18% to $1.1589. The dollar also weakened 0.2% against the yen to 151.97.
In cryptocurrencies, Bitcoin fell 3.45% to $111,804.60, and Ethereum dropped 7.14% to $3,983.21.
Meanwhile, gold prices broke above $4,100, fueled by rising expectations of Federal Reserve rate cuts and renewed safe-haven demand amid escalating trade risks.
- Spot gold: up 0.47% to $4,129.56/oz
- U.S. gold futures: up 0.32% to $4,121.80/oz
