Wall Street’s main indices spent the entire session in the red, while Frankfurt’s DAX index declined 2.3% while London shed 0.9%

Stock markets dropped and gold hit a record high Tuesday as investors fled to safe havens over concerns about US President Donald Trump’s fight with the country’s central bank, tariffs uncertainty and Europe’s public finances.

Wall Street’s main indices spent the entire session in the red after investors returned from the Labor Day holiday, while European stock markets lost significant ground at the close.

The borrowing costs of the US, France and Britain rose as the yield on their sovereign bonds jumped.

Frankfurt’s DAX index declined 2.3% while London shed 0.9%.

September can be a strange month for financial markets, as stocks historically tend to underperform, noted Kathleen Brooks, research director at XTB traders.

However, a selloff in the bond market and a rush to the dollar and gold are signs that investors are rushing into safe havens and liquid assets, she added.

Chris Beauchamp, chief market analyst at investing and trading platform IG, said that markets often see a burst of volatility after US holidays, but today seemed to have something more about it, as European markets nosedived in early trading and bond yields continued to rise.

Around 2030 GMT, gold was at $3,536.56 an ounce Tuesday, easily topping its previous record of $3,500.10 in April.

Wall Street analysts pointed to the drag from a US court ruling Friday blocking many of Trump’s tariffs. The US president has vowed to appeal.

We’re thrown back in that place of uncertainty regarding trade, said Art Hogan of B. Riley Wealth Management.

The court decision, and Trump’s appeal, prolongs the end or the exit from this trade war, said Hogan, dashing hopes the trade war was nearing an end.