NEWS

The S&P 500 rose slightly during trading on Tuesday, October 7, as Wall Street awaited further developments from the United States regarding the current US government shutdown, which has entered its second week.

The S&P 500 rose 0.05%, and the Nasdaq Composite rose 0.1%. The Dow Jones Industrial Average fell about 0.02%.

This comes after hopes for reopening the US government were dashed on Monday after the Senate failed, for the fifth time, to pass a House bill that would fund the government through November 21. The chamber voted mostly along party lines. At least eight Democrats need to join Republicans to reach the 60 votes needed to pass the legislation.

US President Donald Trump again blamed Democrats for the government shutdown in a post on Truth Social on Monday evening, writing that he was "happy to work with Democrats on their failed policies on health care, or anything else, but first they must allow our government to reopen."

Trump had indicated earlier that day that talks with Democrats were ongoing and yielding results. Democrats are demanding that any temporary funding measure include an extension of Obamacare's enhanced tax credits.

"We are currently in negotiations with Democrats that could lead to very positive results. And I'm talking positive results on health care," the US president said in the Oval Office.

However, Senate Minority Leader Chuck Schumer, a Democrat, later denied this, saying in a post on his X Monday account: "This is not true."

Schumer added: "If Republicans are finally willing to negotiate on health care for American families, Democrats will be there—ready to make it happen."

The uncertainty surrounding the government shutdown prompted investors to avoid riskier bets and turn to safe-haven assets, sending gold futures above $4,000 an ounce for the first time.

The government shutdown, which extended into its seventh day on Tuesday, delayed the release of key economic data, such as the September jobs report, which was expected on Friday. This limited the amount of information available to the Federal Reserve before its next interest rate decision. The prolonged shutdown, coupled with the lack of data, comes at a time when labor market risks and inflation remain top priorities for Wall Street investors.

This could further draw investor attention to the minutes of the latest Federal Reserve meeting, scheduled for release on Wednesday, as well as comments expected this week from several Fed officials, including Vice Chair Michele Bowman, Member Stephen Merrin, and Minneapolis Fed President Neel Kashkari.