U.S. stocks also climbed despite the political impasse, with the S&P 500 gaining 0.26% to 6,661.22 points, the Nasdaq Composite rising 0.48% to 22,592.06, and the Dow Jones Industrial Average advancing 0.15% to 46,316.71. Technology stocks provided the biggest boost as investors bet on continued Federal Reserve rate cuts.
Vice President JD Vance declared after a White House meeting with congressional leaders that the government appeared "headed to a shutdown" after talks with Democrats yielded no progress. The funding deadline expires at midnight on Tuesday, with Republicans and Democrats showing little willingness to compromise on a temporary spending solution.
A shutdown would threaten the release of critical economic data, including Friday's jobs report, potentially leaving the Federal Reserve without key information when it meets in late October. The uncertainty has pushed traders to price in a 90% probability of a 25-basis-point rate cut at the next Fed meeting, while the dollar index weakened 0.3%, further supporting gold's appeal to international investors.
Post a Comment