Stocks Slide as Inflation Fears Weigh on Wall Street; Gold and Oil Rally

U.S. equities closed lower Tuesday as inflation worries and questions over the resilience of major technology firms weighed on investor sentiment. The Dow Jones Industrial Average shed 249.19 points, or 0.55%, to close at 45,295.7. The S&P 500 fell 44.72 points, or 0.69%, ending at 6,415.54, while the Nasdaq Composite dropped 175.92 points, or 0.82%, to 21,279.6.

The declines came despite strong gains in commodities. Gold futures for December delivery advanced $78.50, or 2.23%, to $3,594.60, extending their haven appeal. Crude oil futures for October rose $1.55, or 2.42%, to $65.56, reflecting continued strength in energy demand.

Technology remained in focus, with Salesforce’s strategy under scrutiny when it reports earnings after the bell on Wednesday. CFRA senior analyst Angelo Zino warned that while the company has posted steady results, its long-term trajectory depends on how it navigates artificial intelligence disruption. “More importantly is going to be the AI strategy that they articulate, right? And if Salesforce can continue to show that they are witnessing greater momentum for their agentic AI platform, which we think they are, that’s going to help the story, especially at these valuations,” Zino told AInvest’s Adam Shapiro.

Broader macroeconomic concerns kept pressure on stocks. Torsten Slok, Chief Economist at Apollo Global Management, cautioned that “the risks are rising that we could see another ‘inflation mountain’ emerge over the coming months,” citing tariff pressures, dollar depreciation, and divisions within the Federal Reserve over inflation versus employment.

Labor market shifts added to the picture. Bank of America Institute data showed men's labor force participation has outpaced women’s so far in 2025, reversing a six-year trend. Meanwhile, job-to-job transitions have cooled since their 2022 peak, and pay gains for job hoppers have moderated, suggesting softer labor mobility.

Taken together, Tuesday’s moves reflected investors’ caution in the face of rising inflation risks, moderating labor market dynamics, and uncertainty over how leading companies will adapt to an AI-driven economy. With gold and oil rallying, investors signaled a shift toward defensive positioning as September trading began.