U.S. Shutdown Sends Ripples Through Wall Street and Global Markets
The U.S. government shutdown affected financial markets globally, with Wall Street futures falling and gold reaching new highs. Crucial job data releases could be delayed, influencing interest rate forecasts. Amidst these challenges, the shutdown's duration may further impact employment and inflation data, with potential global ramifications.
On Wednesday, Wall Street faced setbacks as futures declined and gold prices peaked, influenced by the U.S. government's partial shutdown. The impasse, which could delay key job data releases, raised concerns over interest rates and broader economic implications.
Both S&P 500 and Nasdaq futures dropped by 0.5%, while European markets remained relatively stable. Gold soared to a historic $3,875 per ounce. Analyst Kyle Rodda emphasized two primary market concerns: the job data delay and potential labor market disruptions due to extended government inaction.
With futures projecting a high likelihood of a Federal Reserve rate cut, other global markets displayed mixed reactions. Japanese and South Korean exchanges showed varied performances, with Japan experiencing a downturn, while South Korea saw gains as economic data indicated positive export trends.
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