Stocks Plummet, Treasury Yields Rise, and Gold Hits New Record High Amid Tariff Jitters and Fed Concerns

The Dow Jones Industrial Average fell over 500 points amid fresh tariff jitters, Treasury yields rose, and gold reached a new all-time high. The S&P 500 slipped 1.2%, and the Nasdaq Composite dropped 1.4%. Treasury yields jumped to 4.98% for the 30-year and 4.3% for the 10-year. Gold prices surged to $3,508 an ounce, a new all-time high. Investors await the August jobs report and watch for developments on tariffs and the Trump-Fed feud.

The U.S. stock market experienced significant volatility on Monday, with the Dow Jones Industrial Average (DJIA) dropping over 500 points, or 1.4%, to close at 30,834.89. The S&P 500 (^GSPC) fell 1.2%, while the tech-heavy Nasdaq Composite (^IXIC) dropped 1.4%. The decline was attributed to concerns over Federal Reserve Chair Jerome Powell's comments that interest rates could be lowered next month and the potential impact of tariffs [1].

Pharmaceutical firm Merck (MRK) and biotech company Amgen (AMGN) contributed to the decline. Merck reported an earnings per share (EPS) beat but saw its stock fall in pre-market trading. The company's EPS of $2.13 surpassed the forecast of $2.03, marking a 4.93% surprise, but revenue fell short of expectations at $15.81 billion, slightly below the forecast of $15.87 billion [2]. Despite the EPS beat, Merck's stock saw a 2.75% drop, influenced by the revenue miss and broader market volatility [2].

Treasury yields jumped on Tuesday, with the 10-year Treasury yield rising to 4.3% and the 30-year bond yield climbing to 4.98%. The 2-year Treasury yield moved to 3.652%. The benchmark 10-year Treasury yield rose more than 6 basis points to 4.287%, and the 30-year bond yield climbed over 6 basis points to 4.978%. The 2-year Treasury yield moved nearly 3 basis points higher to 3.652% [3].

Gold prices surged to a new all-time high of $3,508.50 per ounce, driven by a weaker dollar and expectations of a U.S. interest rate cut. Spot gold rose 0.5% to $3,492.26 per ounce as of 0157 GMT [3].

Investors are closely watching the August jobs report and developments on tariffs and the ongoing feud between President Donald Trump and the Federal Reserve. The market will also be monitoring the July PCE inflation report, scheduled for release on Friday.

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-slides-from-record-sp-500-nasdaq-fall-with-nvidia-earnings-looming-200049241.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-merck-q2-2025-results-beat-eps-forecast-stock-dips-93CH-4203951
[3] https://www.livemint.com/market/commodities/gold-surges-to-record-high-analysts-now-eye-3-700-target-silver-set-to-rally-to-48-11756782607244.html