Market Turbulence: Government Shutdowns, Record Gold, and Weakening Dollar

Wall Street stumbled as gold hit record highs amid a U.S. government shutdown disrupting economic data releases. The shutdown's impact on federal operations and employment data led to uncertainty in interest rate forecasts. European markets defied the trend with healthcare sector gains, while the dollar weakened.

Wall Street faced a downturn on Wednesday as the dollar weakened and gold soared to a historic high. The disruption stems from a U.S. government shutdown, which has postponed critical jobs data releases, clouding interest rate forecasts and raising concerns about the U.S. labor market's health with a surprise drop in private payrolls.

The ongoing government shutdown complicates the Federal Reserve's ability to assess the economy, making it more challenging to decide on future rate cuts. Meanwhile, European shares showed resilience, driven by gains in the healthcare sector following a deal with Pfizer that alleviated tariff concerns.

Globally, market responses have varied. While the dollar continues to fall, European stocks are on the rise, bolstered by easing political risks in healthcare. Investors are closely monitoring the situation, with future Fed rate cuts looking increasingly likely amid ongoing uncertainty.

(With inputs from agencies.)