Equities Begin Week With Modest Gains – US Market Wrap
Stocks notched modest advances on Monday as anxiety grew over a potential US government shutdown that could delay the release of critical labor-market figures — data that may offer insight into how quickly the Fed will trim interest rates. Treasury yields declined across the curve.
The S&P 500 closed up 0.3%. The Nasdaq 100 gained 0.4% after rising nearly 1% earlier. The DXY index cut back losses after pending home sales in August jumped to the strongest level in five months.
The US 10-year Treasury yield slipped to 4.14% — shutdowns are often linked to bond gains due to their tendency to restrain growth. Gold, seen as a haven asset, reached a record high.
Market participants remain concerned that the threat of a US government shutdown could block the release of vital economic data. That includes Friday’s nonfarm payrolls report, which would shed light on the labor market’s resilience and guide the Fed in determining how many more cuts to deliver this year.
Trade-policy uncertainty lingers as Trump pledged to impose new tariffs to support the domestic film and furniture sectors through sweeping — but murky — proposals.
Separately, economists pushed back against Fed Governor Stephen Miran’s first major policy address, where he argued that Trump administration initiatives have sharply reduced the level of interest rates required to keep inflation in check. Miran nevertheless reiterated his position, warning that the Fed risks harming the economy by failing to move swiftly with rate cuts.
