Last week marked an incredible contrast for risk assets. Early in the week, equities shrugged off the US government shutdown to reach new highs, only to flash crash on Friday when President Donald Trump announced 100% tariff hikes on Chinese imports and called China’s rare earth controls “hostile.” The result was the worst weekly loss for major indices since late May, as the Dow Jones went down as much as 2.7%. With the U.S. government shutdown halting key data releases, equities traded on positioning and h ...

Market Overview - US stocks are expected to open lower following the government shutdown, with stock futures showing declines across major indices [1][4] - The S&P 500 is down 0.4% at 6,712 points, the Dow Jones is down 0.2% at 46,585 points, and the Nasdaq is down 0.5% at 24,788 points [4] Economic Impact - Historical trends indicate that markets typically remain resilient during US government shutdowns, as evidenced by positive closes for major indices prior to the shutdown [2] - The shutdown is anticipated to delay the release of key economic reports, including the US nonfarm payrolls, which are crucial for assessing labor market conditions [2][3] - Analysts express concerns that prolonged shutdowns could lead to significant economic disruptions and complicate Federal Reserve policy decisions due to delayed inflation data [3] Commodity Market - Gold, a traditional safe-haven asset, reached a record high of $3,870 per ounce before experiencing a slight retreat [1][4] - The US Dollar Index has decreased by 0.2%, currently standing at 97.57 points [4]