Wall Street Falters, Magnificent Seven Hit 7-Month Lows, Gold Rockets On Haven Demand: What's Driving Markets Tuesday?

Volatility returned to Wall Street on Tuesday, with all major indexes trading in negative territory by midday in New York. Investors weighed the economic impact of potential tariffs from the Trump administration while questioning whether the long-standing dominance of U.S. equities has peaked.

The S&P 500 fell 1.1%, while the tech-heavy Nasdaq 100 dropped 1.5%. Blue-chip stocks provided no relief with the Dow Jones down 0.8%.

Data from Bank of America's Global Fund Manager Survey, released Tuesday, signaled a significant shift in asset allocation. Investor exposure to U.S. equities plunged 40 percentage points month-over-month to a net 23% underweight, the lowest level since June 2023.

The Federal Reserve is set to hold its second policy meeting of the year on Wednesday. While markets widely expect interest rates to remain at 4%-4.25%, investors brace for updated economic projections that may ...