Stock Market Update

[BRIEFING.COM] The major averages have peeled off, now at session lows with the tech-heavy Nasdaq Composite (-3.32%) down 557 points; the market is down in reaction to comments from Fed Chair Powell, who struck a cautious tone in his comments at the Economic Club of Chicago, warning that rising tariffs and global supply chain disruptions could lead to more persistent inflation than previously expected. While the labor market remains solid and wage growth is sustainable, Powell noted growing downside risks to growth and sentiment, suggesting the Fed is prepared to wait for greater clarity before adjusting policy.

Gold futures settled $106 higher (+3.3%) at $3,346.40/oz, reaching a new record high. The rally comes as trade tensions between the U.S. and China continue to escalate, including fresh U.S. export restrictions on AI chips and China's retaliatory suspension of Boeing aircraft deliveries, which have heightened investor anxiety and driven demand for safe-haven assets like gold. Additionally, a weakening U.S. dollar has made gold more attractive to international investors.

Meanwhile, the U.S. Dollar Index is now down about -0.7% to $99.47.