U.S. stocks plummet over 12% in 2025 as gold prices soar to record highs above $3,400

The S&P 500 has suffered a sharp decline of 12.3% in 2025 while gold prices hit an all-time high, reflecting economic uncertainty amid Trump’s tariffs.

Sources:
BloombergApnewsCnbc+3
Updated 3h ago
Section 1 background
Cause And Effect

Trump's tariffs drive financial turbulence and market volatility

President Donald Trump’s aggressive tariff increases will profoundly change the U.S. economy and affect other nations.
J.D. Vance
Vice President
Independent
the ‘rebalancing’ from aggressive tariffs would ‘produce great benefits for American workers’
J.D. Vance
Vice President
Independent
Decline of S&P 500 index below past high
16%
1
Decline of Nasdaq Composite below past high
21%
1
Key Facts
  • Trump's tariff policy has led to a sharp decline in U.S. stocks, which fell to 16% below their record high.1
  • Political uncertainty continues to contribute to a flight from the dollar and instability in financial markets.Cnbc

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Section 2 background
Future Outlook

Risks of currency devaluation loom for emerging markets

Emerging markets face high inflation, debt, and capital flight risks, making devaluation dangerous.
Wael Makarem
Financial Markets Strategist Lead at Exness
Cnbc
Percent of participants anticipating dollar decline
61%
Cnbc
Key Facts
  • Emerging markets are at risk of currency devaluation as they face mounting challenges such as inflation and debt.Cnbc
Section 3 background
Background Context

The decline of stocks and surge of gold amidst economic turmoil

Decline of S&P 500 index in 2025
13%
1
Decline of U.S. dollar in 2025
9%
Apnews
Gold price per troy ounce
$3,343
1
Key Facts
  • In 2025, the S&P 500 index has declined more than 12.3% as investors react to economic uncertainty caused by Trump's tariffs.
  • Gold prices have surged significantly, with New York spot gold reaching a record high of $3,343 per troy ounce.1
  • The U.S. dollar has weakened by 9% against a basket of currencies amidst rising economic concerns.2Apnews

Other Facts in these Reports

Gold prices surged as Asian demands increased due to economic instability.
Bloomberg
Defensive investment options are becoming attractive amidst market declines.
Global financial markets have become unpredictable amidst U.S. political changes.
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