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Stocks showed mixed results as concerns grew over a potential US government shutdown. The S&P 500 rose 0.2% as of midday in New York, while the NASDAQ 100 advanced 0.5%. The Dow Jones Industrial Average slipped 0.1%. In Europe, the Stoxx 600 gained 0.2%, and the MSCI World Index added 0.3%.
In Canada, the S&P/TSX composite index rose by 160.68 points to 29,921.96, supported by gains in base metal stocks. In New York, the Dow Jones fell 57.90 points to 46,189.39, while the S&P 500 increased 19.96 points to 6,663.66, and the NASDAQ Composite gained 138.89 points to 22,622.96.
Investors paid attention to the upcoming US shutdown that could delay economic data releases, including the closely watched nonfarm payrolls report. Analysts pointed out that past shutdowns had little long-term impact on the market, but uncertainty still influenced sentiment.
Currency markets reflected cautious trading. The Bloomberg Dollar Spot Index fell 0.3%. The euro rose 0.2% to $1.1729, while the British pound strengthened by 0.2% to $1.3432. The Japanese yen advanced 0.6% to 148.58 per dollar.
Bond markets saw yields edge lower. The US 10-year Treasury yield declined four basis points to 4.14%. Germany’s 10-year yield fell to 2.71%, and Britain’s dropped five basis points to 4.70%. Analysts suggested the declines reflected increased demand for safer assets amid political uncertainty.
Gold surged to new records, supported by weaker dollar conditions and rising investor caution. Spot gold rose 1.9% to $3,830.11 an ounce, while the December futures contract gained $46.80 to $3,855.80. The metal’s climb pushed U.S. Treasury gold holdings above $1 trillion.
Oil prices fell sharply. West Texas Intermediate crude dropped 3.7% to $63.27 a barrel, and the November contract slipped to $63.49. Brent crude also retreated, pressured by reports of additional OPEC+ supply. Analysts noted that resumed flows from northern Iraq added further downward pressure.
Cryptocurrencies gained ground. Bitcoin rose 2.8% to $113,945.61, while Ether advanced 2.9% to $4,168.89.
Attention remains on upcoming labor market reports, including the JOLTs data on Tuesday and Friday’s nonfarm payrolls release. Economists warn that any delay in the reports due to a government shutdown could complicate the Federal Reserve’s policy outlook.
Federal Reserve officials, including Alberto Musalem and Raphael Bostic, are scheduled to speak this week. Market pricing suggests two potential rate cuts by January, reflecting concerns over slowing job growth.
Analysts from major banks suggested that although shutdown risks cause short-term volatility, expectations for robust corporate earnings, global fiscal easing, and Fed rate cuts could support equities through the end of the year.
Also Read: US Stock Market Today: Dow Jones falls 0.4%, S&P 500 and NASDAQ drop 0.7%, Tesla slips 4%
