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Shutdown Threat Puts Markets on Edge as Gold Sets Records and Oil Falls

A potential delay to jobs data could complicate the Federal Reserve’s October rate‑cut plans.

Overview

  • With the new fiscal year starting Wednesday, talks at the White House yielded no deal to avert a funding lapse and congressional leaders reported major differences after meeting President Donald Trump.
  • U.S. futures and major indexes slipped on Tuesday and global shares were mostly lower after a modest advance on Monday, reflecting rising caution over a possible shutdown.
  • Gold surged to fresh all‑time highs above $3,800 an ounce before easing, reflecting safe‑haven demand and a softer dollar.
  • Oil prices declined as flows resumed on the IraqTurkey pipeline from Kurdistan and reports indicated OPEC+ may approve further production increases.
  • Economists warned a shutdown could delay Friday’s jobs report and other BLS releases, clouding the Fed’s outlook, while Cleveland Fed President Beth Hammack emphasized the need to keep policy restrictive to contain inflation.