US stocks falter as traders weigh political turmoil - RTHK
A A A
Temperature Humidity
News Archive Can search within past 12 months

US stocks falter as traders weigh political turmoil

2025-10-08 HKT 06:36
Share this story facebook
  • Bets on the Federal Reserve cutting interest rates this month and the political crisis in France are adding to the allure of gold, a safe-haven asset. Photo: Reuters
    Bets on the Federal Reserve cutting interest rates this month and the political crisis in France are adding to the allure of gold, a safe-haven asset. Photo: Reuters
Wall Street stocks turned lower on Tuesday and gold closed in on US$4,000 per ounce as investors weighed the US government shutdown and political turmoil in France.

Wall Street equities opened higher, but stumbled into negative territory soon thereafter, with some seeing signs of a fatigued market after a heady run.

"The momentum is beginning to dry up," said FHN Financial's Chris Low. "It just feels to me like this is primarily profit-taking, we need another catalyst."

All three major indices finished the day lower.

The Dow Jones fell 0.2 percent to 46,602, the S&P 500 lost 0.4 percent to 6,714, and the Nasdaq declined 0.7 percent to 22,788.

Spot gold prices came within US$10 of hitting US$4,000 per ounce as futures markets topped the benchmark.

"Gold has benefited from multiple catalysts this year, including tariff uncertainty, stubborn inflation, and a falling US dollar," said analyst Bret Kenwell at eToro.

The US government shutdown stretched into a seventh day, with Republicans and Democrats appearing no closer to an agreement.

Bets on the Federal Reserve cutting interest rates this month and the political crisis in France are adding to the allure of gold, a safe-haven asset.

Among individual companies, Tesla slid 4.5 percent after the company unveiled revamped versions at modestly lower price points. Analysts expressed disappointment that the pricing cut was not more significant, in light of the demise of a federal tax credit.

Ford tumbled 6.1 percent following a fire in an Oswego, New York, aluminium plant that is expected to reduce supplies to the auto giant for months. (AFP)

US stocks falter as traders weigh political turmoil