Stock Market Today: Stocks end lower, gold leaps as uncertainty grips markets

Updated at 4:38 PM EDT by Rob Lenihan

Stocks finished lower Tuesday, after two days of gains, while gold prices powered to a fresh all-time high, as the tech rout resumed.

The Dow Jones Industrial Average fell 260.32 points, or 0.62%, to end the session at 41,581.31, while the S&P 500 lost 1.07%, nearing correction territory and closing at 5,614.66, and the tech-heavy Nasdaq shed 1.71% to end the day at 17,504.12.

Tesla, Palantir and Nvidia were some of the big tech names ending in the red.

“The recent downturn in equity markets has heightened fears of a looming recession among investors,” said Lawrence Gillum, chief fixed income strategist for LPL Financial. 

“Factors such as newly imposed tariffs by the new presidential administration, concerns about an economic slowdown, and persistent inflationary pressures have all contributed to the prevailing bearish sentiment," he added.

While equities have declined in recent weeks, credit spreads — the gap between corporate bond yields and U.S. Treasury bond yields — have widened. 

"This widening is seen by some as a potential recession signal, reflecting greater risk aversion and unease about the economic outlook," Gillum said.

While the move higher in spreads has frightened some investors, he added, that LPL Research’s Strategic and Tactical Asset Allocation Committee (STAAC) believes this move may be more of a correction scare than a recession scare. 

"Key economic indicators, such as employment rates, consumer spending, and corporate earnings, have not shown the sharp declines that usually accompany a recession," Gillum said. "This suggests that the widening spreads may reflect localized market adjustments and potential repricing of risk rather than systemic economic weakness."

Updated at 11:35 AM EDT

Historic vote

Germany's lower house of parliament formally approved a huge spending increase proposed by new Chancellor Friedrich Metz in a vote that represents an historic change in fiscal ambitions for Europe's powerhouse economy.

The bill, which must still be agreed by federal state leaders in the upper house, would pave the way for a $550 billion defense and infrastructure fund while easing a so-called debt brake that has limited Germany's fiscal spending for more than three decades.

Germany's DAX performance index hit a fresh all-time peak prior to the vote before closed 0.72% higher at 23,320.97 points, extending its year-to-date advance to around 16.4%.

BREAKING: German lawmakers have passed a historic infrastructure and defense spending package. 

The measures include a €500bn infrastructure fund, and the removal of borrowing limits to fund a massive increase in defense spending.https://t.co/sZXSBTsCrI pic.twitter.com/yFlTJOlOpy— DW Politics (@dw_politics) March 18, 2025

Updated at 10:13 AM EDT

Speeding lower

Stocks are starting to accelerate earlier declines in early trading, with the S&P 500 now down 60 points, or 1.06% on the session and the Nasdaq off 320 points, or 1.8% 

Gold, meanwhile, added to overnight gains and was last marked at a fresh all-time high of $3,029.22 per ounce. 

US President Donald Trump’s unpredictable trade policy has been the key driver for gold so far in 2025," said ING's commodities strategist Ewa Manthey.

"We see uncertainty over trade and tariffs continuing to buoy gold prices – and if trade tensions intensify and we see more retaliatory measures, safe-haven demand for gold will only continue," she added. "Despite this relentless rally, gold is still a long way from its all-time inflation-adjusted peak, which it hit in 1980 and equates to about $3,800/oz, driven by weak economic growth, rising inflation and geopolitical uncertainty and instability."

#gold #crudeoil #sugar #copper
Gold hit a new record above USD 3,017 an ounce amid rising Middle East tensions and US economic concerns. Bullion rose after Israel's military strikes on Hamas in Gaza threatened a fragile truce, while Trump has increased pressure on Iran to…— Ole S Hansen (@Ole_S_Hansen) March 18, 2025

Updated at 9:33 AM EDT

Soft open

The S&P 500 was marked 26 points, or 0.46% lower in the opening minutes of trading, with the Nasdaq falling 150 points, or 0.83%.

The Dow fell 87 points while the mid-cap Russell 2000 index traded 12 points, or 0.6% lower.

S&P 500 Opening Bell Heatmap (Mar. 18, 2025)$SPY -0.42%