Stocks Fall as Plunging Metals Fan Global Selloff – Europe Market Wrap
Stocks fell globally, with S&P 500 futures pointing to a fourth day of losses, as investors liquidated all kinds of risky assets amid a precious metals collapse. Bitcoin was trading near $77,500 following weekend losses.
The S&P 500 was expected to open 0.6% down, while Nasdaq 100 contracts were down 0.9%. The losses were more severe in Asia, with South Korea’s Kospi, a benchmark for the AI trade, falling 5.3%. European stocks increased marginally.
Markets were focused on extreme volatility in commodities. Gold pared losses after dropping by up to 10%. Silver fell 16% before recovering the majority of its losses. Brent fell almost 5% after Trump announced that Washington is in talks with Iran.
Monday’s actions are helping to unwind gains in some of the year’s top performers, such as Asian tech stocks, emerging-market assets, and commodities. Those trades had risen as investors sought alternatives amid uncertainties over US policies and concerns about the Fed’s independence.
Bitcoin reversed losses after falling about 13% since the beginning of the year, a drop that momentarily drove it back to levels seen before Trump retook the White House. The largest cryptocurrency has now fallen for four months in a row, with the selloff driven by a lack of buyers and dwindling confidence in its function as an alternative asset.
