Stocks Fall, GM Eyes Best Day In A Year, Gold Breaks Records, Silver Hits 12-Year Highs: What's Driving Markets Tuesday?

Wall Street traded lower for the second consecutive day on Tuesday, as investor sentiment turned cautious with the U.S. presidential election just two weeks away.

Concerns over U.S. fiscal policies and potential shifts in economic direction fueled the pause in risk-taking.

The International Monetary Fund (IMF) upgraded its U.S. growth forecasts for 2024 and 2025 in the latest World Economic Outlook, while also flagging rising concerns about the country's debt trajectory, warning that with current large fiscal deficits, “the U.S. public debt is not stabilized.”

Commodities were the standout performers on Tuesday, with both metals and energy experiencing notable gains.

Gold, tracked by the SPDR Gold Trust (NYSE:GLD), rose 0.8%, pushing further into record territory. This increase extended its year-to-date performance to 34%, positioning gold for its strongest annual gain since 1979. Gold miners, as represented by the VanEck Gold Miners ETF (NYSE:GDX), rallied for the ninth consecutive session, hitting their highest levels in over four years.

Silver, tracked by the iShares Silver Trust (NYSE:SLV), surged 2.8%, reaching levels not seen since October ...