U.S. Stocks Dip as Government Shutdown Begins, Gold and Bitcoin Surge
U.S. stocks opened lower today as teh government officially shut down, causing some market jitters. The Dow Jones Industrial average fell by 80 points, while the S&P 500 and Nasdaq Composite slipped by 0.5% and 0.6%, respectively.
Investors are concerned about the impact of the shutdown on the economy and the release of key macroeconomic data. The Bureau of Labour Statistics, which was set to release the U.S. jobs report for September on Friday, is among the agencies affected.
The ADP private payrolls report, which showed a decline of 32,000 jobs in September, is now under greater scrutiny. This missed estimates of a 50,000 gain.
Meanwhile, the dollar slipped, causing gold and Bitcoin to soar. Gold hit a record high of $3,895 an ounce, while Bitcoin broke above $116,890. The flight to safe havens is due to the shutdown, geopolitical uncertainty, and economic concerns.
Analysts say the dollar’s weakness could lead to further losses, with Bitcoin perhaps outpacing gold. Mohamed El-Erian, president of Queens’ College, Cambridge, and Allianz advisor, noted that the DXY dollar index has depreciated to a two-week low.
- U.S.stocks opened lower as the government officially shut down.
- The ADP private payrolls report showed a decline of 32,000 jobs in September.
- Gold and Bitcoin surged as safe havens gained.
