Markets in Turmoil: Trade Tensions Shake Wall Street

Wall Street ended mixed amid soaring gold prices as the IMF and Federal Reserve Chair offered economic optimism, clashing with renewed U.S.-China trade tensions. Gains in the Dow were offset by declines in the S&P 500 and Nasdaq, amidst fluctuating oil prices and treasury yields.

Wall Street wrapped up Tuesday's trading session on a mixed note, with gold hitting record highs, as investors processed conflicting signals. Upbeat economic assessments from the International Monetary Fund (IMF) and Federal Reserve Chair Jerome Powell contrasted with escalating U.S.-China trade tensions.

Despite early losses, the Dow reversed course to post modest gains, while the S&P 500 and the Nasdaq closed in red. Federal Reserve Chair Jerome Powell noted the U.S. economy might be on a firmer trajectory than expected but cautioned about potential risks in policy navigation. This was in line with an IMF report raising the global growth outlook.

New rounds of tit-for-tat tariffs between the U.S. and China continued to unsettle markets, accompanied by a sell-off in crude prices. Treasury yields eased slightly, reflecting the economic uncertainties, while key financial institutions kicked off a promising earnings season. Meanwhile, the dollar weakened, and gold benefited from safe-haven demand.

(With inputs from agencies.)