Trump’s Tariffs Wipe Out S&P Gains, Silver Hits All-Time High

U.S. equities closed sharply lower on Tuesday, erasing year-to-date gains for both the S&P 500 and the Nasdaq. The S&P 500 ended down 2.1% at 6,796.86, while the Nasdaq slid 2.4% and the Dow Jones Industrial Average dropped 1.8%, shedding about 870 points. Investors reacted after President Donald Trump threatened to impose new tariffs on eight NATO allies tied to disputes over Greenland.

Trump said the countries would face 10% U.S. import tariffs starting February 1, followed by 25% tariffs beginning June 1 unless the U.S. secures what he called a “complete and total” purchase of Greenland. The remarks unsettled markets already on edge as earnings season begins. Tuesday’s decline marked a near three-week low for major indexes.

Greenland Dispute Fuels Trade War Fears

Over the weekend, Trump used his Truth Social platform to outline the tariff plan, intensifying concerns about a widening trade conflict between the U.S. and Europe. On Monday, he reinforced his stance as European Union officials discussed up to $108 billion in retaliatory tariffs. EU policymakers also considered deploying an anti-coercion instrument that could affect trillions of dollars in U.S. assets.

Tensions rose further after Trump threatened a 200% tariff on French wine following President Emmanuel Macron’s refusal to join Trump’s proposed “Board of Peace.” When reporters asked 

Trump on Tuesday how far he would go to acquire Greenland, he replied, “You’ll find out.” Such remarks injected fresh uncertainty into global markets. What happens when diplomacy collides with tariffs? Investors rarely wait for answers.

Source: X

Treasury Yields Jump as Bond Markets Feel Pressure

While equities fell, Treasury yields moved sharply higher. The yield on the 10-year Treasury rose about seven basis points to roughly 4.24% by late afternoon. Higher yields influence borrowing costs across the economy, including mortgages and consumer loans. A sell-off in Japanese government bonds added pressure to U.S. debt markets, pushing yields to their highest levels in four months.

Source: Barchart via X

The bond market reaction compounded investor anxiety, as higher yields often challenge equity valuations. Market participants now balance trade risks with concerns about fiscal stability and global capital flows.

Gold and Silver Surge to Unprecedented Levels

As stocks slid, investors shifted toward traditional safe havens. Gold climbed to a fresh record, breaking above $4,700 per ounce for the first time. Spot gold gained to roughly $ 4,884.89 per ounce, an all-time high. 

Source: CoinCodex

Silver also reached new territory. Prices briefly topped $95 per ounce, marking an all-time high, before easing slightly. The metal has surged about 147% over 2025 and has gained more than 32% since the start of 2026. Gold rose roughly 64% in 2025 and has added about 10% this year.

A softer U.S. dollar amplified the rally in precious metals, making dollar-priced commodities cheaper for overseas buyers. The greenback logged its largest daily decline in more than a month. At the same time, investors continued to price in two potential 25-basis-point interest rate cuts starting from mid-2026.

Attention also sharpened after U.S. Treasury Secretary Scott Bessent said Trump could name a new Federal Reserve chair as early as next week. Leadership uncertainty at the central bank added another layer of risk for markets navigating trade tensions and shifting policy signals.

Markets Brace for What Comes Next

With stocks under pressure, yields climbing, and metals surging, markets now face a volatile mix of geopolitical and financial risks. Gold traders have begun to eye $4,800 and $4,900 as near-term reference points, while $5,000 looms as a longer-term psychological level. For silver, $100 acts as the next psychological and near-term target before potentially climbing higher.

Can risk assets stabilize amid such headlines? For now, investors continue to reposition as global uncertainty drives sharp moves across asset classes.