Markets wavered on Wednesday morning, as investors appeared anxious about the effects of a U.S. government shutdown that took effect at midnight.
S&P 500 futures were down about 0.4 percent in premarket trading. The price of gold, a haven during times of turmoil, set another record high.
Typically, markets have been unfazed by government shutdowns. But the longer a shutdown runs, the deeper its potential effect on the economy. President Trump’s threats to fire “a lot” of civil servants and make other “irreversible” cuts may also have longer-lasting consequences.
Wednesday’s decline put only a small dent in a bullish run for stocks, with the S&P 500 up about 14 percent this year. The market has been propelled in particular by enthusiasm about the prospects for artificial intelligence. The benchmark S&P index has posted five consecutive monthly gains, more than reversing the sharp decline after Mr. Trump first announced sweeping tariffs on nearly all U.S. imports.
Although October is off to a subdued start, investors should remain “disciplined, diversified and patient” through the shutdown, according to analysts at Vanguard, the money manager.
Bonds and the dollar were little changed. Investors are focused on the Federal Reserve, which sets interest rates that influence Treasury bonds, the value of the dollar and more, as it faces a tough decision about how quickly to cut rates. But making that call is harder if the government shutdown deprives the central bank of essential data points that help it gauge the state of the economy.
The Bureau of Labor Statistics has said it would not publish the jobs report as had been expected on Friday. Other important data releases, including the next consumer inflation report, are in peril if the shutdown drags on.
Perhaps the sharpest signs of investor anxiety can be seen in the market for gold, which traders often turn to as a hedge against economic or political uncertainty. The precious metal has set a series of records in recent months, and traded above $3,900 an ounce for the first time on Wednesday. The price of gold has risen roughly 50 percent this year.
“Given the ongoing fiscal, political and trade uncertainties, it is unlikely that gold’s upward trend will reverse in the near term,” analysts at the commodities broker Sucden Financial noted.
Jason Karaian is the business news director, based in London. He was previously the editor of DealBook.
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