Market Quakes: S&P 500 Wavers, Gold’s Rally Falters—What’s Next?

U.S. Stocks Dip Amid Government Shutdown Fears

U.S. stocks took a hit on Tuesday, with major indexes slipping. The Dow Jones opened 20 points lower,while the S&P 500 and Nasdaq lost 0.1% and 0.16%,respectively. This downturn follows Monday’s negative close,as investors worry about a potential government shutdown.

gold prices also cooled, pausing their record rally. The precious metal, which recently hit $3,900, fell to around $3,843, down 0.31%.

Stocks and crypto had edged up as the dollar dipped on Monday, but the brief uptick has a muted outlook early Tuesday as Bitcoin (BTC) pares gains from above $114,000 to mirror the major U.S.gauges.

Markets weigh potential US government shutdown

The slight downturn for markets comes as investors show jitters around a possible government shutdown. Wall Street had looked to edge higher at open on Monday, but saw the uptick dissipate after Trump failed to secure a deal from Democratic and Republican congressional leaders. Leaders pointed to a lack of consensus during the White House meeting on Monday.

Vice President JD Vance,Senate Democratic Leader Chuck Schumer,and Senate Republican Leader John Thune all pointed to major differences after the Oval Office meeting,adding to fears of the first partial government shutdown since 2019.

If Trump fails to secure a last-minute deal, the shutdown will begin at 12:01 a.m. ET on Wednesday. Polymarket puts the odds of a federal government shutdown in 2025 at over 85%. Odds of this happening on oct. 1, 2025, are at 79%. Investors see a shutdown as likely to impact the release of key macroeconomic data and potentially the Federal Reserve’s anticipated interest-rate cut.

alongside the looming government shutdown, U.S. stocks are faltering amid investor reaction to President Donald Trump’s latest tariffs on lumber. Trump also threatened fresh tariffs on foreign-made movies on Monday.

Jobs data out on Friday

Investors will watch for market insights from the Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday at 10:00 a.m. ET. The Bureau of Labor Statistics report will offer details on U.S. job openings in August, and forecasts have vacancies dipping slightly to 7.1 million, off July’s 7.181 million.

The market will be keen on a deal that keeps the government operational ahead of the anticipated nonfarm payrolls report for September, set for release on Friday.