Markets Stir Amid Government Shutdown and Global Economic Shifts

Global markets showed mixed reactions amid the U.S. government shutdown and economic uncertainties. Investors anticipated Federal Reserve rate cuts, while U.S. Treasury yields fell. The Dow rose but heavyweights dragged Nasdaq down. Airline stocks rose amid hopes for normalcy post-shutdown. Oil prices dropped on oversupply concerns, and gold prices rose.

Amid the ongoing U.S. government shutdown, global markets remained tentative, with MSCI's global equities index ticking up slightly. Investors monitored U.S. Treasury yields, which dipped as the Federal Reserve signaled potential rate cuts. The yen fell to nine-month lows against the dollar, prompting reactions from Japanese officials.

In the U.S., investors diversified portfolios, shifting from technology to value stocks, as the Dow Jones climbed while the S&P 500 and Nasdaq fluctuated. The longest government closure has disrupted essential services and led to market uncertainty, with hopes pinned on a resolution to reenable economic data updates.

Airline stocks buoyed the Dow's performance amid optimism for restored air travel services post-shutdown. Oil prices fell due to oversupply forecasts, while gold climbed as markets anticipated pivotal economic data and possible December interest rate cuts. The dollar strengthened against global currencies like the yen and euro.

(With inputs from agencies.)