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Time of India
11 hours ago
- Business
- Time of India
US stocks end lower as conflict between Israel and Iran adds caution
U.S. stocks declined on Tuesday amid escalating tensions in the Middle East, as the Israel-Iran conflict intensified and the U.S. military increased its presence in the region. Investors also reacted to disappointing U.S. retail sales and factory production data, while awaiting the Federal Reserve's monetary policy decision. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads U.S. stocks ended lower on Tuesday as the Israel-Iran conflict raged on for a fifth day and kept investor anxiety high, with the U.S. military moving fighter jets to the Middle added to losses in afternoon trading. The Cboe Volatility index reported, citing three U.S. officials, that the U.S. military is deploying more fighter aircraft to the Middle East and extending the deployment of other Donald Trump called for Iran's "unconditional surrender." The war began on Friday when Israel attacked Iran's nuclear facilities."We're in a period where visibility is not great, uncertainty is high, and the wall of worry is under construction," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, the Middle East conflict, investors are closely watching for any new information on Trump's tariffs, his tax-cut bill and U.S. interest Federal Reserve is expected to announce a monetary policy decision on Wednesday, although policymakers are expected to leave rates unchanged. All of the major S&P 500 sectors were lower except for energy , which gained along with sharply higher oil prices. Investors have worried that the conflict could create bottlenecks for oil exports from the oil-rich Middle to preliminary data, the S&P 500 lost 51.06 points, or 0.85%, to end at 5,982.05 points, while the Nasdaq Composite lost 180.12 points, or 0.92%, to 19,521.09. The Dow Jones Industrial Average fell 305.20 points, or 0.72%, to 42, Tuesday, data showed U.S. retail sales dropped more than expected in May, while factory production barely rose last month."A data-dependent Fed is going to have a lot of explaining to do about why it's not responding to the data," said Brian Jacobsen, chief economist at Annex Wealth declining stocks, solar stocks fell after U.S. Senate Republicans late on Monday unveiled proposed changes to Trump's tax-cut bill, including a phase-out of solar, wind and energy tax credits by of Enphase Energy and Sunrun dropped. Eli Lilly shares eased after it agreed to acquire Verve Therapeutics for up to $1.3 billion. Shares of Verve surged.
Yahoo
15-03-2025
- Business
- Yahoo
Gold prices are smashing record highs but it's still a risky bet — ‘You're not sending gold to buy your Domino's pizza,' finance expert warns
Gold is traditionally viewed as an age-old hedge against inflation and market volatility, and the precious metal's price has surged amid President Donald Trump's on-again, off-again tariff threats. Finding liquidity can still be tricky, however, and the risks are particularly high for smaller investors. It turns out tariffs are good news for goldbugs. As trade policy uncertainty and recession fears rattle markets, surging demand for safe-haven assets helped briefly drive the precious metal's spot price above the milestone $3,000 mark for the first time on Friday, though it declined later in the day. A historic buying spree of bullion by central banks has helped spur a rally in recent years, but traders have been rewarded for their bets on the metal for some time. Gold prices have risen about 10-fold since 2000, per Bloomberg, while the S&P 500 has merely quadrupled. As interest in the metal picks up, however, smaller investors may especially want to think twice before adding bullion to their portfolios. Gold isn't as liquid as it's often made out to be, Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management, told Fortune. After all, it's probably a stretch to say the metal is easily convertible into cash and exchangeable for other goods and services. 'You're not sending gold to buy your Domino's pizza,' he said. In that same vein, the metal can be harder for smaller investors to buy and unload at a competitive price compared to institutions, which often have better access to gold markets and larger quantities of bullion to sell. Nonetheless, gold has long held appeal as a hedge against inflation and market volatility. Preliminary results from the University of Michigan's famous consumer sentiment survey showed respondents are more pessimistic about the U.S. economy than they've been since 2022. Many consumers, including Republicans, said 'frequent gyrations in economic policies' have made it difficult to plan financially, noted survey director Joanne Hsu. Beyond President Donald Trump's on-again, off-again tariff threats, a general dearth of earnings news from companies has also helped cultivate an increasingly uncertain environment, Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management, told Fortune. 'That's where people seek safe havens,' he said, 'and gold can be seen as that.' Haworth is somewhat skeptical of the metal's long-term prospects, but he noted inflation expectations in the Michigan survey spiked to 4.9%, up from 4.3% in February and the highest reading since November 2022. On the other hand, he said, fears of an economic contraction could weigh on gold prices. 'Because everyone just needs liquidity at that point, right?' he said. 'Everyone needs cash.' While bullion's nominal spot price has just reached an all-time high, gold's inflation-adjusted peak of $3,800 came in 1980. That's when America found itself in the throes of 'stagflation,' or the unusual malaise of both runaway inflation and flagging growth. Central bank buying has fueled gold's rally in recent years. As countries like China continue to push for de-dollarization, or weaning themselves off the world's reserve currency, it likely serves as a massive tailwind for the metal. The U.S. dollar has weakened in recent weeks, which makes gold cheaper for foreign buyers since the metal's price is quoted in greenbacks. Purchasing sprees from the likes of China, Poland, India, and Turkey have coincided with less foreign buying of U.S Treasuries, Haworth noted. Meanwhile, if tariffs force targeted nations to export less to America, he explained, they will have even less money to spend on U.S. debt. 'So that trend probably continues' Haworth said, 'And it appears to be a goal, right, of current U.S. policy.' As the Trump administration, which appears fixated on America's trade deficits with other countries, attempts to reshape global trade, some investors also tout gold's ability to preserve value amid macroeconomic turmoil. 'We've seen that over centuries gold has been able to—despite the volatility—always mean-revert and always maintain its purchasing power, all while providing significant liquidity,' Thomas Kertsos, co-portfolio manager at First Eagle Investment Management, told Bloomberg. But Haworth isn't sure bullion provides that function for investors. That may be something to think about before rushing to Costco to buy more gold bars. This story was originally featured on
Reuters
11-03-2025
- Business
- Reuters
Trump tariffs live: US stock markets set for subdued open, Trump to meet top CEOs
Recap: What happened on Monday? 5 minutes ago 09:15 EDT Stephen Culp U.S. stocks plunged on Monday as relentless tariff wrangling and mounting anxieties from a possible federal government shutdown gave rise to fears that the U.S. economy could be careening into recession. The previous week's steep selloff resumed, gathering momentum as the session progressed. All three major U.S. indexes suffered sharp declines. The S&P 500 had its biggest one-day drop since December 18 and the tech-loaded Nasdaq slid 4.0%, its biggest single-day percentage drop since September 2022. The S&P 500, coming off of its biggest weekly percentage drop since September, is 8.6% below its record closing high reached less than a month ago. "It's a material drop for one day but we're seeing the normal sort of drawdown that you see in an upmarket," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. "Concerns are mounting and investors are moving to the sidelines, but we haven't seen growth worries manifest in data yet." 09:15 EDT Heather Timmons Wall Street's main indexes were set for a subdued open on Tuesday following sharp losses on Wall Street in the previous session. Global markets have been gripped by a sense of risk aversion ever since U.S. President Donald Trump triggered a tit-for-tat tariff war between the U.S. and its trade partners, which analysts have said could stoke inflationary pressures and trigger an economic slowdown. Trump's latest tariffs, on steel and aluminum, are set to kick in at midnight in Washington (0400 GMT). They are expected to impact billions of dollars worth of machinery, auto parts and other goods, driving up costs for US companies and consumers. Markets plummeted Monday on worries about Trump's broader tariffs plans. Last week's one month reprieve for most Canada and Mexico tariffs raises the question: Could Trump suspend these, too? Trump will meet the chief executives of America's biggest companies later in the day. We'll bring you the latest developments as we get them.
