Wall Street saw a sharp dip at the open on Tuesday as stocks shed gains amid fresh tariff jitters, while Treasury yields rose and gold reached a new all-time high.
Summary
- Dow Jones Industrial Average fell more than 500 points as stocks dipped amid fresh market concerns.
- Treasury yields spiked and gold rose to a new all-time high, while Bitcoin mirrored stocks.
The Dow Jones Industrial Average shed more than 500 points, or 1.1%, and the S&P 500 slipped 1.2%, as Wall Street’s holiday-shortened trading week began on a negative note. The Nasdaq Composite led the major gauges lower, sliding about 1.4% at the open and continuing the downbeat move noted at last week’s close.
Cryptocurrencies have also mirrored stocks, with Bitcoin (BTC) struggling below $110k and Ethereum (ETH) pared gains despite increased corporate treasury moves.
Treasury yields rise, gold hits new high
While U.S. stocks dipped, Treasury yields rose and gold marched to a new all-time high. The 30-year U.S. Treasury yield jumped to 4.98%, while the benchmark 10-year yield climbed to near 4.3%.
Elsewhere, gold prices surged to a new all-time high of $3,508 an ounce, with the uptick sending the precious metal past its previous peak hit in April.
Gold’s rally comes amid market anticipation around interest rates. Investors have increased the odds of a Federal Reserve interest-rate cut in September following Fed Chair Jerome Powell’s hint at the move in his speech at the Jackson Hole event in August.
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Wall Street eyes on Fed, tariffs
The week ahead will provide key insights into the stock market sentiment after last week’s dip on hot inflation data. For the short trading week, the main focus will be the August jobs report set for release on Friday. Ahead of this, investors will have more to digest with U.S. manufacturing, job openings, and private payrolls data.
Investor focus is also on the tariffs front, with President Donald Trump’s trade policy receiving a legal blow after a federal appeals court ruled that most of Trump’s reciprocal tariffs are unconstitutional. The matter is likely headed to the Supreme Court, and markets will be keen on this development.
Notably, U.S. Treasury Secretary Scott Bessent has said Trump has a “plan B” should the Supreme Court uphold the appeals court’s ruling.
Meanwhile, Trump’s escalated feud with the Fed is causing fresh jitters among investors. As Wall Street considers what the Trump–Fed feud means for the central bank’s independence, an earlier marker could be the ruling on the “removal” of Fed governor Lisa Cook.
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