Global equity indices declined amid renewed concerns over trade tariffs, while gold hit a new record high. The S&P 500 and Nasdaq posted losses, with energy and materials sectors under pressure, as the U.S. dollar strengthened.
- S&P 500 declined 1.2%, Nasdaq Composite dropped 1.5%
- QQQ fell 1.6%, XLE down 2.1%
- Gold hit record $2,430/oz, GLD up 2.8%
- U.S. Dollar Index (DXY) rose to 107.3
- Materials sector declined 1.8%, financials down 0.4%
- Trade policy uncertainty remains a key market driver
Global equity markets closed lower on Monday as escalating trade tensions reignited investor anxiety. The S&P 500 dropped 1.2%, while the Nasdaq Composite fell 1.5%, led by losses in technology and energy stocks. The QQQ index declined 1.6%, reflecting growing concerns over the impact of tariffs on high-growth sectors. Meanwhile, the U.S. Dollar Index (DXY) rose to 107.3, signaling stronger demand for safe-haven assets. Gold surged to a new peak of $2,430 per ounce, with the SPDR Gold Trust (GLD) gaining 2.8% and closing above its previous record high. The rally in gold reflects a flight to safety amid mounting geopolitical risks and uncertainty over global trade policy. Analysts note that renewed tariff threats have increased expectations of inflationary pressures and supply chain disruptions, particularly affecting materials and industrial sectors. Energy stocks were among the hardest hit, with the XLE index falling 2.1% as oil prices fluctuated amid trade-related supply concerns. The broader materials sector declined 1.8%, underscoring the sensitivity of commodity-dependent industries to protectionist policies. Financials posted modest losses, with the sector down 0.4%, as bond yields rose slightly on heightened risk aversion. Market participants are now closely monitoring upcoming trade negotiations and central bank commentary, particularly from the Federal Reserve, for signals on inflation management and monetary policy direction. The combination of elevated gold prices and declining equities suggests a shift in investor sentiment toward caution and risk mitigation.