Markets Teeter Amid Political and Economic Crossroads
Global financial markets saw a downturn as major stock indexes fell, amid political turmoil in France and Japan and a U.S. government shutdown. Meanwhile, gold prices hit an unprecedented $4,000 an ounce, driven by economic uncertainty, while tech-driven optimism propped up U.S. stocks to record highs.
On Monday, major stock indexes experienced a downward trend, with the S&P 500 retreating slightly from its recent record highs as investors watched political unrest unfold in France and Japan, along with concerns over a prolonged U.S. government shutdown. Concurrently, gold futures reached a remarkable $4,000 an ounce for the first time.
The surge in gold prices is partly attributed to the uncertainty surrounding the U.S. shutdown. U.S. gold futures for December delivery ascended 0.6% to $3,998.50, peaking at $4,009.00. In France, the euro depreciated against the U.S. dollar for the second consecutive day, following Prime Minister Sebastien Lecornu's resignation, which prompted fiscal concerns.
Despite the ongoing U.S. government shutdown, major U.S. stock indexes maintained record closing highs, boosted by optimism regarding potential Federal Reserve interest rate cuts and advances in AI-related deals. Jake Dollarhide, CEO of Longbow Asset Management, remarked on the high peaks in both tech stocks and gold, questioning which trend will prevail in the near future.
(With inputs from agencies.)
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