By mid-morning, the Dow slipped below the 49,000 mark, down nearly 200 points. The S&P 500 fell close to 0.8%, while the Nasdaq dropped more than 1%, weighed down by weakness in large-cap technology and semiconductor stocks. The selling pressure followed several days of steady declines as investors reassessed valuations after a strong rally and reacted to a fast-changing global backdrop.
The mood turned defensive as fears grew over potential US military action against Iran. President Donald Trump escalated warnings after reports of violent crackdowns on protests in Iran, prompting Tehran to threaten retaliation. The US decision to pull some personnel from regional bases added to market unease. Oil prices jumped to a two-month high, reigniting concerns that higher energy costs could push inflation back up.
On the corporate front, earnings from major banks offered mixed signals. Bank of America and Wells Fargo reported strong profit growth driven by trading revenue, but financial stocks still dragged the Dow lower. Citigroup shares jumped after an 84% surge in advisory fees, while results from JPMorgan Chase earlier in the week failed to excite investors.
Economic data added another layer of complexity. Softer wholesale inflation, combined with mild consumer price readings, strengthened expectations that the Federal Reserve will hold interest rates steady in January. Retail sales for November beat forecasts, showing consumers remain resilient, but not strong enough to offset broader market worries.
As stocks fell, money rushed into safe havens. Gold climbed above $4,600 an ounce, while silver briefly crossed $90 for the first time ever. Analysts say the surge reflects a mix of geopolitical risk, falling bond yields, and growing doubts over long-term monetary stability.
Dow, S&P 500, Nasdaq slip as geopolitical fears, earnings, and Fed signals collide
The Dow Jones Industrial Average dropped 180.36 points, or 0.37%, to sit at 49,011.63 by mid-morning. Similarly, the S&P 500 slid 0.78% to 6,909.47, while the tech-heavy Nasdaq Composite bore the brunt of the selling, tumbling 1.25% to 23,414.26. This downward move follows a volatile Tuesday where financial stocks pulled back from their peaks. Markets are currently grappling with a “triple threat” of rising military tensions in the Middle East, a landmark bankruptcy in the luxury retail sector, and looming Supreme Court decisions regarding presidential tariff authority. Specifically, threats of US military action against Iran pushed oil prices to a two-month peak, further complicating the inflation outlook. While the Federal Reserve is widely expected to hold interest rates steady in January following muted wholesale and consumer inflation data, the flight to safety has sent precious metals to unprecedented heights.
Silver remarkably breached the $90 per ounce threshold for the first time, reflecting a 5.64% surge on the day, while Gold climbed to a record $4,625.60.
Geopolitical risk has surged to the forefront of the trading floor as President Trump escalates military rhetoric against Iran. This shift follows a violent crackdown on public protests within Iran, leading to heightened fears of a direct regional conflict. Oil markets responded immediately, with prices hitting a two-month high after Iranian officials warned of retaliation against any American strikes.
The US has already begun withdrawing non-essential staff from regional bases, signaling a high state of alert. This instability is fueling a massive “risk-off” trade, where investors abandon equities in favor of tangible assets. Consequently, silver prices skyrocketed by over 5%, briefly trading above $90, while gold continues to set daily records.
Investors are also looking toward Washington D.C. as the Supreme Court prepares to issue a ruling on a critical challenge to the President’s authority to unilaterally set tariffs. President Trump has framed this legal battle as a matter of national security, warning that a ruling against his administration would be catastrophic for his economic agenda. Because Wednesday is a scheduled opinion release day, traders are bracing for a decision that could fundamentally alter international trade dynamics.
The uncertainty surrounding this case has added another layer of volatility to an already nervous market, as a loss for the administration could invalidate existing trade barriers and reshape the competitive landscape for US manufacturers.
Bank earnings in focus as financial stocks send mixed signal
The corporate sector provided a stark contrast between financial resilience and retail despair. Banking giants Bank of America and Wells Fargo reported quarterly results that exceeded expectations, driven largely by a surge in trading activity. Citigroup saw its stock price jump after reporting a staggering 84% growth in financial advisory fees. These strong performances offered a reprieve after JPMorgan Chase opened the earnings season with results that many analysts found underwhelming.
The strength in financial services, however, was overshadowed by the news that Saks Global, the parent company of luxury icons Saks Fifth Avenue and Bergdorf Goodman, has filed for Chapter 11 bankruptcy.
The Saks bankruptcy marks a defining moment for the luxury retail landscape. The company has struggled to manage the $2.7 billion acquisition of Neiman Marcus finalized in late 2024. After missing a $100 million interest payment on Tuesday, the company secured $1.75 billion in debtor-in-possession financing to keep operations running. In a surprising leadership shakeup, Richard Baker stepped down as CEO after only two weeks in the role, replaced by former Neiman Marcus head Geoffroy van Raemdonck.
While all store locations remain open, the filing highlights a broader trend of consumer fatigue. Higher prices are pushing even affluent shoppers toward off-price retailers. Saks joins a growing list of retailers, including Macy’s and Kohl’s, that are shuttering doors or restructuring to survive a shifting economic environment.
Top stocks today
Intel Corporation traded higher, rising to $48.06, up 1.64%, with more than 41 million shares changing hands. The stock hovered near its 52-week high of $48.96, signaling renewed optimism around chip demand and Intel’s turnaround efforts. Investors rotated selectively into semiconductors, even as the Nasdaq remained under pressure.
The standout mover of the day was High Roller Technologies. Shares surged an extraordinary 270% to $13.04, driven by explosive speculative volume of over 32 million shares. The stock has now rocketed far above its $1.16 low, putting it firmly on momentum traders’ radar. Analysts cautioned that such sharp rallies often come with extreme volatility.
On the downside, NVIDIA slid again, falling 2.44% to $181.28 on 31 million shares traded. The pullback came as investors locked in profits after a historic rally. Despite the decline, Nvidia remains well above its 52-week low and continues to be a long-term leader in AI-related growth.
China-linked tech name Autozi Internet Technology gained nearly 29%, closing at $3.90 with strong volume above 21 million shares. The move reflected renewed speculative interest in smaller international tech stocks, though volatility remains elevated.
Medical device maker ENvue Medical dropped sharply, falling more than 21% to $1.82, as heavy selling pressure pushed the stock closer to its recent lows. Biotech and medical names continued to face investor caution amid risk-off sentiment.
Trip.com Group was among the biggest large-cap losers, tumbling nearly 15% to $64.57. The stock faced selling after recent strength, as concerns around global travel demand and China-linked equities resurfaced.
In financials, Bank of America slid 4.34% to $52.17, despite reporting strong earnings earlier in the week. Bank stocks broadly weighed on the Dow, as investors questioned how sustainable trading-driven profits will be in coming quarters.
Crypto-linked equity CleanSpark bucked the market trend, rising nearly 5% to $13.17. The gain tracked strength in Bitcoin prices, which stayed near record levels, supporting mining stocks.