Tech Stocks Drag Wall Street Lower as Gold and Silver Rebound

NEW YORK (JN) – Wall Street retreated on Tuesday as weakness in major technology stocks outweighed gains across much of the broader market, pulling key U.S. indexes further from recent record highs. At the same time, gold and silver prices staged a strong rebound after last week’s abrupt and volatile sell-off that rattled commodities markets.

The session reflected a split mood among investors: caution toward richly valued technology shares that have driven much of the market’s rally in recent years, and renewed interest in traditional safe-haven assets following sharp corrections. The divergent moves underscored how quickly sentiment can shift across asset classes when expectations about interest rates, currencies, and economic risks come into play.

While most stocks in the S&P 500 advanced, heavy declines in a handful of influential companies were enough to tip the index into its fourth loss in five days, highlighting the outsized impact of the largest technology names on overall market direction.

Big Tech declines weigh on major indexes

The S&P 500 fell 0.8% to 6,917.81, retreating further from the all-time high it set last week. The Dow Jones Industrial Average slipped 166.67 points, or 0.3%, to 49,240.99, while the Nasdaq composite, which is heavily weighted toward technology companies, dropped 1.4% to 23,255.19.

Nvidia fell 2.8% and Microsoft dropped 2.9%, contributing significantly to the Nasdaq’s decline. The pullback reflected ongoing concerns among investors that the stock prices of some of the market’s largest technology firms have become stretched after years of dominance fueled by enthusiasm around artificial intelligence and digital infrastructure.

Companies viewed as potentially vulnerable to AI-driven competition also faced pressure. ServiceNow fell 7%, extending its decline for the year to more than 28%. The losses in such stocks came despite broader gains across the index, illustrating how performance among a few mega-cap names can shape overall market outcomes.

Palantir Technologies was among the exceptions. Its shares rose 6.8% after reporting quarterly profit that exceeded analysts’ expectations and forecasting revenue growth of 61% for the year, well above consensus estimates.

Gold and silver prices bounce back

Some of the most pronounced moves of the day were in precious metals markets. Gold rose 6.1% to settle at $4,935 per ounce, while silver climbed 8.2%, recovering part of the steep losses recorded late last week.

Gold and silver had been on a prolonged rally for more than a year as investors sought perceived safety amid concerns about tariffs, a weaker U.S. dollar, and rising government debt levels worldwide. Gold in particular had surged dramatically, at one point roughly doubling in value over a 12-month period.

That rally faltered sharply last week. Gold fell from near $5,600 to below $4,500 by Monday, and silver experienced even sharper volatility, plunging more than 31% in a single session on Friday.

Traders have pointed to shifting expectations around U.S. monetary policy as a trigger for the reversal. Some believe that anticipation surrounding President Donald Trump’s nominee to lead the Federal Reserve, and expectations that interest rates could remain elevated to combat inflation, altered the outlook for metals and the dollar. Others say the decline was a natural correction after rapid and crowded gains.

Strategists at Barclays noted that the recent moves “underscored how stretched anti-USD positioning had become,” suggesting that many investors had heavily bet against the dollar while favoring gold.

Mixed corporate earnings reactions

Several companies saw sharp moves following earnings updates and corporate announcements.

PayPal plunged 20.3% after reporting weaker quarterly results than analysts had expected. The company also announced a leadership change, saying that the “pace of change and execution” over the past two years had not met the board’s expectations.

Pfizer fell 3.3% despite reporting stronger quarterly profit than anticipated. Investors focused instead on the company’s outlook for 2026, where the midpoint of its forecasted profit range fell below market expectations.

Banco Santander’s U.S.-traded shares dropped 6.4% after the Spanish bank announced plans to acquire Webster Financial in a cash-and-stock deal valued at about $12.3 billion. Webster’s shares rose 9% on the news.

On the positive side, PepsiCo gained 4.9% after reporting quarterly profit and revenue that slightly exceeded analysts’ forecasts. The company also said it plans to cut prices this year on products such as Lay’s and Doritos in an effort to attract customers who have been strained by inflation.

DaVita surged 21.2% after the dialysis and healthcare services provider posted better-than-expected quarterly profit.

Bond yields ease, global markets rebound

In the bond market, the yield on the 10-year U.S. Treasury note eased to 4.26% from 4.29% late Monday, reflecting modest demand for government debt.

Markets in Asia rebounded from sharp losses recorded the previous day. South Korea’s Kospi jumped 6.8% for its strongest performance since the early months of the COVID-19 market turmoil in 2020, after falling 5.3% a day earlier. Samsung Electronics, a major component of the index, rose 11.4%.

Japan’s Nikkei 225 advanced 3.9%, while stocks gained 1.3% in Shanghai and 0.2% in Hong Kong. European indexes were more subdued, with France’s CAC 40 edging down by less than 0.1%.

Market mood reflects shifting investor focus

Tuesday’s trading illustrated how investor attention can pivot quickly between concerns over equity valuations and renewed interest in traditional safe-haven assets. Even as most stocks in the S&P 500 advanced, the concentration of market value in a handful of large technology firms made the broader indexes vulnerable to their declines.

At the same time, the sharp rebound in gold and silver after a rapid correction highlighted the ongoing volatility in commodities markets tied to expectations about interest rates, currency movements, and global economic risks.

For investors, the session served as a reminder that leadership in financial markets can rotate swiftly, particularly when sentiment toward high-growth sectors and safe-haven assets shifts in response to evolving economic signals.