Global Markets Fluctuate Amid Political Unrest and Economic Uncertainty

Major stock indexes fell as political unrest in France and Japan, coupled with a U.S. government shutdown, created economic uncertainty. Gold prices soared due to increased demand for safe-haven assets, as investors anticipate a Federal Reserve rate cut. Tesla stock declined after unveiling affordable versions of its vehicles.

Major stock indexes plunged on Tuesday, with the S&P 500 closing lower following recent record highs. Investors are closely observing political upheavals in France and Japan, contrasted by the ongoing U.S. government shutdown, while gold futures hit an unprecedented $4,000 an ounce amidst the turmoil.

The demand for safe-haven gold, driven by concerns over the U.S. government shutdown and expectations for a Federal Reserve interest rate cut, saw U.S. gold futures for December closing at $4,004.4, a 0.7% increase. Meanwhile, the euro dipped against the U.S. dollar as France faced fiscal uncertainty following the resignation of Prime Minister Sebastien Lecornu.

Tesla shares waned by 4.4% after the company introduced lower-priced versions of its Model Y SUV and Model 3 sedan, amid diminishing sales and market share challenges. The consumer discretionary index dropped 1.4%, leading declines among S&P 500 sectors. Global market dynamics remain tense as French President Emmanuel Macron confronts mounting pressure to address political instability.

(With inputs from agencies.)