Wall Street strategists are recalibrating their outlooks, citing a growing probability of further Federal Reserve rate hikes. This sentiment follows recent commentary from Chairman Kevin Warsh and persistent inflation data, which economists at Bank of America Global Research described as an unambiguously worsening problem. The brokerage subsequently raised its forecast for potential rate increases this year.

Precious metals bore the brunt of the market volatility. Gold futures dropped $52 to settle at $4,129.90 per troy ounce, a 1.2% decline that extends the metal's slide to more than 22% below its record peaks. Silver faced even steeper pressure, shedding $3.51—or 5.4%—to finish at $62.02, marking the commodity's lowest closing price since December.