S&P 500 erases gains after CPI relief fades, gold breaks down

Wall Street's attempt at a bounce from in-line consumer price index data quickly unraveled, leaving the S&P 500 with a fourth consecutive daily decline and sending gold below a key technical level.

The S&P 500 initially erased a 45-point drop after the CPI report matched expectations, offering a brief sigh of relief. But the buying faded as President Trump threatened to hit Iran "very hard" and technology stocks struggled ahead of the SpaceX IPO on Friday. Nvidia fell 3.3% and Tesla dropped 3.7%, while selling spread beyond tech: Caterpillar slumped 6.2%, and automakers and financials also declined. Energy and consumer staples were among the few gainers. The four-day, 4% slide is the worst such stretch since late 2025.

For currency and commodity traders, the breakdown in gold is a notable signal. The metal had been supported by safe-haven demand amid geopolitical uncertainty, but the failure to hold support suggests a shift in risk sentiment. A stronger dollar, buoyed by the relative resilience of the US economy compared to peers, has also weighed on gold. Traders can monitor gold's price action on NowPrice's real-time dashboard to track whether the break is sustained or triggers a reversal. The broader sell-off in equities may also support the dollar as a haven, putting further pressure on commodity currencies like the Australian and New Zealand dollars.

Looking ahead, the market's focus turns to the SpaceX IPO on Friday, which could influence tech sentiment. Also on the calendar are weekly jobless claims and producer price index data, which will provide further clues on the inflation trajectory. Any escalation in US-Iran tensions could amplify risk-off moves, potentially driving further flows into the dollar and yen, while weighing on emerging market currencies.