Global markets today delivered a jarring reminder that nothing climbs forever. Investors watched Wall Street slumps unfold on Friday as the S&P 500 shed 0.4 per cent, closing at 6,939.03 points. The Dow Jones Industrial Average dropped 179 points, while the Nasdaq composite lost 0.9 per cent.
Figure 1: Gold bullion and coins amid falling price charts symbolising a sharp precious metals sell-off [Freepik]
But the real shock came from precious metals. Gold plunges latest update showed the yellow metal crashing 11.4 per cent to settle at $4,745.10 per ounce. Silver fared even worse, plummeting 31.4 per cent in a single session. For markets that had seen gold nearly double over twelve months, the reversal felt sudden and severe.
President Donald Trump nominated Kevin Warsh to lead the Federal Reserve. That single announcement sent ripples through global markets today, forcing investors to recalibrate their expectations for interest rates, inflation, and the dollar’s future.
Trump’s Fed Pick Rattles Investor Confidence
Markets do not like surprises, and Warsh’s nomination delivered exactly that. The former Federal Reserve governor brings a complicated reputation. He once criticised the central bank’s bond-buying programmes designed to keep interest rates low. That suggests a hawkish stance on monetary policy.
Yet Warsh has also recently voiced support for lower rates and criticised current Fed Chair Jerome Powell. Analysts at Macquarie Group noted that Warsh is not the Fed’s candidate but Trump’s. That distinction matters because it raises questions about the central bank’s independence.
The Federal Reserve traditionally operates separately from political pressures. It makes unpopular decisions when necessary, such as keeping interest rates high to control inflation. If that independence erodes, investors fear the long-term consequences for the economy.
Figure 2: U.S. dollar notes illustrated against declining value graphics reflecting currency volatility [Freepik]
The U.S. dollar rallied following the nomination, though it swivelled sharply before settling. Bond yields edged higher, with the 10-year Treasury yield climbing to 4.25 per cent from 4.24 per cent. Higher yields signal that bond prices are weakening, often a response to inflation concerns.
Wall Street Slumps 2026 Despite Tech Earnings Beats
Wall Street slumps 2026 despite some encouraging corporate results. Tesla climbed 3.3 per cent after recovering from Thursday’s losses. The electric vehicle maker had reported better-than-expected profits for the latest quarter, though earnings remained sharply lower year-on-year.
Apple added 0.5 per cent after delivering stronger-than-forecast quarterly profits. The iPhone maker’s performance offered a rare bright spot in an otherwise gloomy session.
Figure 3: Apple and Microsoft logos set against falling market charts highlighting tech stock pressure [CityAM]
Microsoft had weighed heavily on markets just a day earlier. The tech giant plunged 12 per cent on Thursday despite beating profit and revenue expectations. Investors focused instead on rising investment costs, slower Azure cloud growth, and uncertainty around artificial intelligence profitability.
ServiceNow dropped 11.6 per cent even after reporting solid earnings. Analysts praised the results, but the stock had been sliding since the summer. Investors remain cautious about valuations across the technology sector.
Meta Platforms bucked the trend, rallying 7.6 per cent. The Company behind Facebook and Instagram exceeded profit expectations while continuing heavy investments in artificial intelligence. IBM climbed 5.3 per cent after surpassing revenue and profit forecasts.
Gold Plunges Latest Update Stuns Precious Metals Investors
Gold plunges latest update revealed the most dramatic move in commodity markets. The yellow metal had topped $5,000 per ounce for the first time on Monday. By Thursday, it briefly touched $5,600 before reversing sharply.
Friday’s 11.4 per cent plunge erased weeks of gains in hours. Silver’s 31.4 per cent collapse stunned even seasoned traders. The precious metal had been riding a jaw-dropping rally alongside gold.
Figure 4: Gold and silver bars displayed side by side representing extreme volatility in precious metals markets [Freepik]
When Warsh’s nomination suggested the Fed might maintain some independence, those fears eased slightly. Investors unwound positions, triggering a cascade of selling. Mining stocks bore the brunt. Newmont sank 11.5 per cent, while Freeport-McMoRan fell 7.5 per cent.
The gold plunges latest update serves as a reminder that even safe-haven assets can experience violent corrections. Nothing in financial markets moves in one direction indefinitely.
Federal Reserve Independence Concerns Persist
The Fed’s independence has become a flashpoint for global markets today. Trump has repeatedly pushed for lower interest rates, which typically stimulate economic growth but can also fuel inflation.
The central bank paused rate cuts on Wednesday after three consecutive reductions to close out 2025. The Fed is trying to support employment without letting inflation spiral. The latest data showed wholesale inflation running hotter than expected in January, complicating the Fed’s task.
Figure 5: Kevin Warsh [PBS NewsHour]
Warsh’s nomination requires Senate approval. Until then, uncertainty will linger. Some analysts see Warsh as a defender of Fed independence given his previous service. Others note his recent alignment with Trump’s preference for lower rates.
Thierry Wizman, a strategist at Macquarie Group, warned that Warsh may cut rates more quickly when conditions allow. That could undermine inflation control efforts and weaken the dollar further.
Global Markets Today Show Mixed International Performance
Global markets today showed varied responses across regions. European indexes rose across most major markets. Asian markets delivered mixed results, with South Korea’s Kospi climbing 1 per cent to another record. Chipmaker SK Hynix helped lift the index.
Indonesia’s stock market gained 1.2 per cent in Jakarta after the CEO of the country’s stock exchange resigned. The resignation followed warnings from MSCI about market risks, including transparency concerns. Stocks had stumbled in prior sessions on those worries.
Figure 6: Global market volatility visualised through a world map with real-time financial pulse indicators [Freepik]
The U.S. dollar edged higher against the British pound and some other currencies. The dollar had weakened over the past year due to the same risks that drove gold higher. Warsh’s nomination provided a temporary boost as investors reassessed Fed policy direction.
International investors are watching U.S. developments closely. The Federal Reserve’s decisions ripple through global markets today by influencing capital flows, currency values, and commodity prices. A more independent Fed could mean higher rates for longer, strengthening the dollar but potentially slowing growth.
What Comes Next for Investors?
Global markets today face rising uncertainty as the Warsh nomination adds fresh risk to an already fragile outlook marked by high valuations and persistent inflation.
Wall Street slumps 2026 could extend if earnings weaken or the Federal Reserve signals rates will remain higher for longer, keeping pressure on technology stocks.
The gold plunges latest update does not rule out a rebound, but the sharp correction highlights how quickly crowded trades can unwind. For now, investors are in wait-and-watch mode, tracking bond yields, economic data, and Fed signals to determine whether this move was a brief reset or the start of a broader shift.
Also read: Culpeo Minerals Reveals High-Grade Copper Hits in December 2025 Quarterly Activities Report
FAQs
Q1. Why did Wall Street slumps occur on Friday?
Ans. Wall Street fell after President Trump nominated Kevin Warsh to lead the Federal Reserve, raising concerns over interest rates and Fed independence. The S&P 500 slipped 0.4%, while the Nasdaq dropped 0.9%.
Q2. What caused the gold plunges latest update?
Ans. Gold slid 11.4% as investors exited safe-haven trades after a sharp year-long rally. Reduced fears over Fed independence triggered heavy selling.
Q3. How did global markets today perform outside the United States?
Ans. Global markets were mixed. European stocks rose, while Asian markets varied. South Korea’s Kospi gained 1%, and Indonesia’s index jumped 1.2%.
Q4. Will the Federal Reserve cut interest rates soon?
Ans. The Fed has paused rate cuts after higher-than-expected inflation data. Future decisions may depend on economic data and Warsh’s confirmation.
