Wall Street Steadies After Overnight Chaos in Global Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. financial markets stabilized Monday morning after sharp overnight swings in global trading. The S&P 500 and Nasdaq saw slight declines, while the Dow gained as investors processed volatility in metals and tech stocks. Precious metals rebounded after dramatic drops, while oil fell on potential U.S.-Iran diplomatic progress.
Quick Look
- U.S. stocks mixed: Dow +0.2%, S&P 500 -0.1%, Nasdaq -0.3%
- Tech drag: Nvidia drops 2.2%
- Asia selloff: South Korea’s Kospi plunges 5.3%
- Metals rebound: Gold and silver recover from overnight crash
- Gold dips to $4,500 overnight, rebounds to $4,725
- Silver swings from -9% to +3% after Friday’s 31% drop
- Trump nominates Kevin Warsh as Fed Chair
- Oil down 4% on easing U.S.-Iran tensions
- Bond yields steady: 10-year Treasury at 4.25%
Deep Look: Wall Street Steadies After Overnight Chaos in Global Markets
Wall Street calmed early Monday after a turbulent night across global markets, with investors digesting dramatic movements in tech stocks, precious metals, and oil.
The S&P 500 slipped just 0.1% and the Nasdaq dropped 0.3%, weighed down by losses in big tech, including a 2.2% decline in Nvidia. The Dow Jones Industrial Average rose 0.2% (111 points), reflecting cautious optimism.
Overnight chaos was felt most in Asian markets, where South Korea’s Kospi plunged 5.3%—its worst day in nearly a year—driven by a nearly 9% drop in chipmaker SK Hynix. Japan’s Nikkei 225 dropped 1.3%, and China’s Shanghai and Hong Kong indexes fell 2.5% and 2.2%, respectively.
The biggest story, however, was the volatility in precious metals. Gold plummeted below $4,500 per ounce overnight—a more than $1,000 drop from recent highs—before rebounding to $4,725, still down 0.5% from Friday. Silver mirrored the chaos, swinging from a 9% loss to a 3% gain within hours.
This followed Friday’s 31.4% collapse in silver prices after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair. Warsh’s reputation raised expectations of tighter monetary policy, which would reduce the appeal of gold and silver as inflation hedges. However, many analysts believe Trump expects Warsh to cut interest rates, aligning with his long-standing criticism of high borrowing costs.
Fed decisions are pivotal, impacting global bond yields, inflation forecasts, and equity valuations. The 10-year Treasury yield dipped slightly to 4.25%, signaling investor confidence in U.S. debt.
The wild swings in gold and silver may have been amplified by high-leverage trading, according to Darrell Cronk of Wells Fargo Wealth & Investment Management, who cited margin calls and a trader washout as key causes of the plunge, rather than a fundamental shift in market demand.
Meanwhile, oil prices sank more than 4% after Trump said Iran is “seriously talking to us”, raising hopes for diplomatic progress and easing fears of oil supply disruption. Any thaw in U.S.-Iran relations could lead to increased supply and lower prices.
European markets rebounded modestly, up nearly 1%, as investors looked to stabilize following Asia’s rout. The global outlook remains fragile amid uncertainty over U.S. monetary policy, geopolitical tensions, and speculative trading behaviors.
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