US equity markets experienced a downturn Thursday, closing with losses across key indices. The Dow Jones Industrial Average finished at 45,947 points, a decline of 0.4% from the previous day’s close. The broader S&P 500 was down 0.5% at approximately 6,605 points shortly before the market’s close, while the Nasdaq 100 registered a 0.4% decrease, standing at around 24,397 points.
Several factors contributed to the market’s negative performance. Concerns have emerged within the Federal Reserve regarding the necessity of a second interest rate reduction this year, fueling investor caution. Re-emerging discussions surrounding a potential “AI bubble” also added to the apprehension. Furthermore, the increasing likelihood of a US government shutdown is weighing on sentiment. Negotiations between Republicans and Democrats remain stalled, complicating efforts to resolve the budget crisis. Reports suggest that the administration is preparing for potential workforce reductions across federal agencies.
Adding to the uncertainty, reports surfaced concerning a gathering of hundreds of military generals and admirals in Virginia next week, convened by US Secretary of Defense Pete Hegseth without publicly stated reasons, linking to the potential shutdown.
The euro weakened against the dollar, trading at $1.1660, or €0.8576 per dollar.
Gold saw a modest rally, fetching $3,750 per fine ounce, a 0.4% increase. This equates to approximately €103.41 per gram.
Oil prices also rose, with a barrel of Brent crude costing $69.65, an increase of 34 cents, or 0.5% compared to the previous day’s closing price.