Market Mayhem: Precious Metals Plunge Sends Ripples Across Wall Street

A steep decline in precious metals rattles Wall Street as investors face a rocky start to the week, with economic data and corporate earnings in focus. Gold and silver tumble as CME Group raises margin requirements, while tech stocks drop amid policy uncertainty and changes in Federal Reserve leadership.

Wall Street braced for a shaky opening on Monday following a turbulent sell-off in precious metals, unsettling investors as a week rife with corporate earnings and vital economic data begins. Gold plummeted 6%, while silver nosedived 10%, after the CME Group escalated margin requirements post a historic Friday crash.

This market upheaval forced leveraged investors to rethink strategies as they scrambled to meet margin calls. Equity investors grappled with shifting leadership, notably affecting gold and silver miners like Harmony Gold and Sibanye Stillwater, which fell in premarket trade.

The volatility was further accentuated by policy jitters following Kevin Warsh's nomination as Federal Reserve chair, leading to a downslide in tech and energy stocks, with companies like Exxon Mobil and Chevron feeling the pressure.

(With inputs from agencies.)