Wall Street Stalls as Gold Plunges and Earnings Jitters Grip Global Markets

Reuters, Global markets hit a cautious pause as Wall Street digested a wave of mixed corporate earnings and rising geopolitical tensions. A sharp sell-off in gold and currency swings added to investor unease, keeping traders on edge midweek.

Gold, which had been on track for its best year since 1979, suffered a dramatic 5% fall on Tuesday the steepest one-day drop in five years before sliding further on Wednesday. Prices briefly approached the $4,000 per ounce mark before stabilizing. Analysts said the abrupt reversal signaled that speculative buying, rather than safe-haven demand, had fueled much of gold’s recent rally. The firmer U.S. dollar, strengthened by a falling yen amid reports of another major Japanese fiscal stimulus, also weighed on gold prices.

On Wall Street, the S&P 500 paused its recent advance, with futures showing little movement before Wednesday’s opening bell. Netflix’s stock tumbled nearly 6% in after-hours trading after the company missed third-quarter targets, citing a tax dispute in Brazil. Despite the setback, Netflix shares remain up 39% for the year.

Investors are now eyeing upcoming results from major firms including Tesla and IBM, as the broader U.S. earnings season continues to outperform expectations with roughly 9% year-on-year profit growth.

In the bond market, the yield on long-term U.S. Treasuries touched a six-month low ahead of a 20-year bond auction and Friday’s key inflation data. Across the Atlantic, British government bonds rallied sharply as UK inflation held steady at 3.8% in September, prompting speculation about another Bank of England rate cut this year. The pound weakened slightly against both the dollar and the euro following the report.

Overall, the combination of earnings volatility, currency shifts, and renewed geopolitical worries has left global investors treading carefully as the final quarter of the year unfolds.