If it's going to be a September to remember for stocks, we'll need more days like today. The Nasdaq Composite (+0.94%) and S&P 500 (+0.37%) were both higher at last check while the Russell 2000 (-0.21%) and Dow (-0.32%) notched modest declines.
Of course, nobody much cares about stocks today (sorry!). The real object of investors' affection today is gold. Yesterday, Comex continuous gold contracts eclipsed $3,600 for the first time. The yellow metal is smashing through those levels today, hitting a record $3,629. Spot gold also surpassed $3,550 for the first time. Demand for the precious metal shows no signs of abating. It's up 35% YTD.
Now, this is great if you're a precious-metals enthusiast, but it's not if you own just about anything else. The Dollar Index has fallen nearly 10% year-to-date in the face of tariff problems, renewed inflation worries, and increased concern that the US government might shut down due to the usual budget disputes. And some additional uncertainty: Challenges to President Trump's signature tariff policy are about to reach the Supreme Court. If the administration loses, the U.S. will have to refund billions in tariffs.
Wednesday Reading
In all this, investors pick up a new worry: fiscal complications. Millions of businesses are slowly adjusting to the new tariff normal. If Scotus ultimately rules against the president, businesses will have to prepare for a new battle: The budget will be (further) out of sorts and the U.S. will likely need to raise more short-term funding (much like the $100 billion of four-week notes it's running off right now).
We'll have to wait for the call from the justices. Meantime, tomorrow we get a glimpse of payrolls through ADP's monthly report, foreshadowing the big jobs report from the Bureau of Labor Statistics on Friday. That's been heralded as a make-or-break factor for the Fed's decision at its next policy meeting.
TurboTax Via TheStreet
-- Noah Weidner, markets reporter
