The S&P 500 was set to open 0.7% lower after sliding as much as 1.5%. Gold headed for its biggest three-day drop since 1980 as a record-breaking rally unraveled at breakneck speed. Silver extended losses by 40% over the same period.

Treasuries posted modest gains, with the 10-year yield falling two basis points to 4.22%. The dollar held on to Friday’s gains. Bitcoin continues near $77,0000 after a week of trading.

“The markets are nervous,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “We have seen a broad sell-off across markets in Asia, Europe and the US. With increased volatility in gold, but also in silver, investors need to de-risk.”

The MSCI All Country World Index fell 0.5% while the Asian benchmark fell 2.1%. South Korea’s Kospi – a bellwether for the AI ​​sector – fell 5.3%. Losses in European stocks were more muted.

Monday’s price action pointed to growing volatility after a prolonged rally in metals and a string of record highs in equities, driven by billions in AI investments. At the same time, investors are reassessing valuations and recalibrating expectations for monetary policy under a potential Warsh-led Fed.

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With the election of Warsh — an economist known for his fierce criticism of the central bank as much as his views on monetary policy — the debate suddenly shifted from short-term rates to the Fed’s $6.6 trillion balance sheet and its role in markets.

If confirmed by the Senate, the former Fed governor will replace Jerome Powell when his term ends in May. Warsh, 55, has aligned himself with Trump in 2025 by arguing publicly for lower rates, at odds with his longtime reputation as an inflation hawk. The US president said on Friday that he had not asked Warsh to commit to the cuts.

“Investors are worried about ‘higher for longer,'” Francis Tan, Asia chief strategist at Indosuez, said about US interest rates. “However, the confusion in the market is whether Trump will add pressure to send more doves to the market channel through Warsh. This will cause volatility in asset classes and geographies. “Play Video

Technological losses came later Nvidia The Chief Executive Officer of Corp. that Jensen Huang said the company’s proposed $100 billion investment in OpenAI is “never a commitment” and that the company will consider any funding rounds “one at a time.”

“Jensen’s comments are likely to have a near-term impact on sentiment, especially for AI-exposed names that have rallied strongly,” said Gary Tan, a portfolio manager at Allspring Global Investments. “The comments mainly served as a profit-taking factor as we saw some stalling in many trades across the market.”

In political news, the US government stumbled on a partial shutdown Saturday while waiting for the House to approve a funding agreement Trump worked with Democrats after a national uproar over the killing of Border Patrol agents of a US citizen in Minneapolis.

Brent crude oil ran out of oil up to 7.4%, while COPPER decreased more than 5%.

“Sentiment has become defensive – but it’s mainly risk-cutting – not so much panic,” said Billy Leung, an investment strategist at Global X Management. “The general sentiment is weak.”