Wall Street Holds Near Records as Gold Surges Past $4,000/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. markets remained steady near record highs Tuesday, even as gold prices broke $4,000 per ounce for the first time. The S&P 500, Dow Jones, and Nasdaq all drifted slightly lower, with investors balancing optimism over AI-driven growth against global and economic uncertainty from the U.S. government shutdown. Analysts say tech stocks and gold now serve as twin hedges for a volatile economy.
Wall Street Quick Looks
- S&P 500: Down 0.1%, easing after seven-day rally
- Dow Jones: -66 points (-0.1%)
- Nasdaq: -0.1%, slightly below record highs
- Gold Futures: Record $4,000 per ounce, up 50% in 2025
- 10-Year Treasury Yield: 4.14%, down from 4.18%
- Top Gainers: IBM, Dell, AMD, Constellation Brands
- Biggest Loser: Tesla falls after product speculation
- Shutdown Impact: Economic data delayed, keeping markets cautious
Wall Street Holds Near Records as Gold Surges Past $4,000
Deep Look
NEW YORK — U.S. stocks held their ground near record levels on Tuesday as investors absorbed the news of gold’s historic climb above $4,000 per ounce, signaling a growing divide between optimism in technology and anxiety over global instability.
The S&P 500 edged down 0.1%, snapping a seven-session winning streak. The Dow Jones Industrial Average dipped 66 points (0.1%), while the Nasdaq composite slipped 0.1%, reflecting a quiet trading session across Wall Street.
Markets were largely subdued following weeks of strong gains fueled by expectations that the Federal Reserve will continue to cut interest rates and the economy will avoid a severe downturn.
“After such a long winning streak, this feels like a natural pause,” said Melissa Grant, senior equity strategist at JP Morgan Private Wealth. “But the tone remains cautiously optimistic — the AI trade is still driving sentiment.”
Gold’s Record-Breaking Rally
The biggest headline came from the commodities market, where gold futures topped $4,000 per ounce for the first time in history. The milestone underscores a flight to safety amid the ongoing U.S. government shutdown, geopolitical tensions, and inflationary pressures.
Gold has now gained more than 50% since January, bolstered by expectations of lower interest rates, record global debt, and rising political instability.
“Optimists are betting on AI, pessimists are betting on gold — and some are betting on both,” said Thierry Wizman, strategist at Macquarie Group, in a client note.
Silver futures have also surged nearly 60% in 2025, further highlighting the global demand for hard assets.
AI Continues to Fuel Market Gains
Despite minor pullbacks Tuesday, artificial intelligence remains the driving force behind the market’s rally.
- IBM gained 4% after announcing a new partnership with Anthropic to integrate the Claude AI chatbot into enterprise software.
- Dell Technologies rose 2%, buoyed by upbeat commentary from executives touting AI-fueled growth at an investor conference.
- Advanced Micro Devices (AMD) jumped 4.5%, extending Monday’s surge after striking a landmark deal with OpenAI to supply chips for its expanding AI infrastructure.
“AI has become Wall Street’s golden ticket,” said Erik Langford, a technology analyst at Wedbush Securities. “But like every boom, it carries the risk of inflated valuations.”
Without major gains in productivity, some economists warn the AI-driven rally could add inflationary pressure, especially as governments accumulate record debt.
Shutdown and Market Data Delays
The ongoing federal government shutdown is also shaping market sentiment. With many agencies closed, critical data — including the monthly jobs report — remains delayed.
Analysts say the lack of fresh information could actually help keep volatility low in the short term.
“Investors don’t have new data to react to, so they’re sitting tight,” said Grant. “It’s a case of ‘no news is good news’ for now.”
Still, prolonged shutdowns can dent confidence, disrupt spending, and slow hiring if they drag on for weeks.
Corporate Movers
- Constellation Brands rose 1.9% after its quarterly results beat expectations despite a year-over-year decline in beer sales. CEO Bill Newlands pointed to a “challenging socioeconomic environment” that continues to weaken consumer demand.
- Intercontinental Exchange (ICE) added 0.8% after announcing plans to invest up to $2 billion in Polymarket, a growing platform for political and financial prediction markets.
- Tesla slipped 1.2%, giving back some of Monday’s 5.4% rally following social media buzz about a possible product announcement.
In Canada, Trilogy Metals shares soared 216% after the White House approved a 10% federal equity stake and authorized the 211-mile Ambler Road project in Alaska, unlocking access to key mineral deposits including copper, cobalt, and gold.
Global and Bond Market Moves
In Europe, France’s CAC 40 recovered slightly — up less than 0.1% — after tumbling Monday following Prime Minister Sébastien Lecornu’s resignation, which deepened political uncertainty in Paris.
Meanwhile, the 10-year U.S. Treasury yield eased to 4.14% from 4.18%, signaling modest demand for bonds as investors balanced growth optimism with inflation concerns.
Investor Outlook
With gold hitting record highs and AI stocks driving Wall Street’s climb, investors appear to be hedging both hope and fear — betting on innovation while protecting against turbulence.
“It’s a tale of two markets,” said Langford. “Tech investors are chasing progress, while gold buyers are guarding against chaos. That’s the split personality of 2025.”
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