US equity markets experienced a downturn on Thursday, closing lower across major indices. The Dow Jones Industrial Average finished at 45,947 points, representing a 0.4% decrease from the previous trading day.
The broader S&P 500 slipped to approximately 6,605 points, marking a 0.5% decline, while the Nasdaq 100 registered at around 24,397 points, down 0.4% at the close.
Several factors contributed to the market’s performance. Concerns have emerged within the Federal Reserve regarding the necessity of a second interest rate reduction this year. Furthermore, ongoing discussions surrounding a potential “AI bubble” and rising fears of a US government shutdown have instilled caution among investors. The possibility of a shutdown appears increasingly likely as Republican and Democratic lawmakers have yet to engage in substantive negotiations to address the ongoing budget crisis. Reports indicate that the administration is preparing for potential widespread employee furloughs within federal agencies.
Adding to the uncertainty, reports have surfaced detailing a gathering of numerous generals and admirals convened by the Secretary of Defense in Virginia for next week without stated purpose, potentially linked to the impending shutdown.
In currency markets, the Euro weakened against the US dollar, trading at $1.1660, or €0.8576 per dollar.
Gold prices benefited from the market volatility, rising to $3,750 per fine ounce, a 0.4% increase. This translates to €103.41 per gram.
The price of crude oil also saw an increase. Brent crude futures were valued at $69.65 per barrel late Thursday, up 34 cents, or 0.5%, compared to the previous day’s closing price.
