Global stocks rebounded Tuesday after investors stepped back from the rush to safety that gripped markets late last week, even as gold notched a fresh record above $4,000 an ounce.
The turn in sentiment came as U.S. and European equity benchmarks advanced and the dollar drifted lower, easing financial conditions and encouraging dip buyers to wade back in.
Spot gold briefly topped $4,070, extending a year-to-date surge that has been underpinned by central bank demand, geopolitical jitters, and growing expectations for Federal Reserve rate cuts.
In Europe, the Stoxx 600 edged higher after a two-session slide, with banks and industrials pacing gains.
The move followed a positive handoff from U.S. markets, where the S&P 500 and Nasdaq rallied Monday as traders reassessed the risk of a deeper U.S.–China rupture and rotated back into large-cap technology.
U.S. equity futures pointed to further gains, with investors betting that a softer dollar and slightly lower Treasury yields can stabilize risk assets near recent highs.
The 10-year yield hovered near 4.05 percent, down from last week’s levels, removing some pressure from equity valuations that had wobbled when long rates jumped.
The dollar index slipped toward the 99 handle, extending Monday’s pullback as traders priced a less aggressive policy path and a cooler tone in trade headlines.
A weaker greenback typically supports commodities and non-U.S. earnings, and it arrived on the same day bullion printed its latest milestone.
Gold’s relentless climb has accelerated this month, with spot prices pushing beyond prior peaks and futures trading north of $4,090 intraday.
Oil steadied after a sharp downdraft, with Brent futures recovering into the mid-$60s as traders weighed supply risks against a softer global growth pulse.
Crude’s bounce added to the broader risk-on mood without fanning inflation worries, since prices remain well below summer levels.
The rally did not erase all concerns. Market breadth remains uneven, and concentration risk in mega-cap technology is still a talking point for portfolio managers heading into the next leg of earnings season. For context, our coverage of the Nasdaq hits new all-time high
examined how leadership has narrowed around AI-linked winners. Meanwhile, gold’s surge has revived interest across the mining complex, echoing themes we explored when Sprott launches an active metals and miners fund
The rally did not erase all concerns. Market breadth remains uneven, and concentration risk in mega-cap technology is still a talking point for portfolio managers heading into the next leg of earnings season. For context, our coverage of the Nasdaq hits new all-time high examined how leadership has narrowed around AI-linked winners.
Meanwhile, gold’s surge has revived interest across the mining complex, echoing themes we explored when Sprott launches an active metals and miners fund. Those dynamics can amplify swings if growth data or policy signals surprise.
A softer dollar and easier yields tend to ease financial conditions and support cyclicals, while record gold underscores persistent demand for hedges against macro shocks.
Canadian equities, with heavier weight in energy and materials, typically track both oil and bullion. If crude stabilizes and metal prices hold firm, the TSX could find a tailwind even if global risk appetite remains selective.