NextFin news, On Tuesday, October 7, 2025, US stock markets declined amid growing economic worries and uncertainty surrounding the ongoing US government shutdown. The shutdown, which entered its seventh day, has disrupted the release of key economic data, leaving investors to rely on secondary indicators and fueling market volatility.
The Dow Jones Industrial Average closed down 131 points, or 0.28%, at 46,563.97. The Nasdaq Composite fell 156.30 points, or 0.68%, to 22,785.36, while the S&P 500 dropped 29.97 points, or 0.44%, to 6,710.31. The declines ended recent winning streaks for the major indices.
Market participants cited concerns over the government shutdown's impact on economic data availability and corporate earnings margins, notably from technology companies such as Oracle, which led tech stocks lower. The shutdown is primarily linked to disputes over Affordable Care Act tax credits and healthcare funding.
In contrast to equities, gold prices surged to a historic high, surpassing $4,000 per troy ounce for the first time ever. This rise reflected increased investor demand for safe-haven assets amid the current economic and political uncertainties.
Bond markets saw yields decline, with the 10-year Treasury yield falling by 2 basis points to 4.13% and the 2-year yield also dropping 2 basis points to 3.58%. A $58 billion 3-year note auction experienced weaker demand.
Meanwhile, US President Donald Trump reportedly engaged in trade talks with Canada’s Governor Mark Carney, signaling ongoing diplomatic and economic discussions despite the domestic political impasse. However, details of these talks remain limited.
The government shutdown, which began on October 1, 2025, has raised concerns about its broader impact on the US economy and financial markets, as uncertainty persists over when lawmakers will reach an agreement to reopen the government.
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