LIVE MARKETS- Wall Street stock indexes turn red after NY Fed report; gold futures cross $4000/oz mark

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WALL STREET STOCK INDEXES TURN RED AFTER NY FED REPORT; GOLD FUTURES CROSS $4000/OZ MARK

Wall Street main stock indexes turned into red territory, reversing earlier gains in the session, as worries over the job market mounted following a report from the Federal Reserve Bank of New York, while U.S. gold futures surged past the historic $4,000 per ounce milestone.

Americans grew more worried about the future of the job market in September, while at the same time bumping up projections for the future path of near-term inflation, a report from the Federal Reserve Bank of New York said on Tuesday.

The New York Fed report, which is crucially watched for short-term inflation outlook, has attracted more attention from investors as key economic data remain in hibernation mode due to the government shutdown extending into its seventh day.

The report comes in the heels of recent reports indicating a softening in the labor market.

With limited economic indicators to dig in, traders are currently betting on a 94.6% for the Fed to cut interest rates by 25 bps at this month's policy meeting, according to CME's Fedwatch Tool.

On the other hand, spot gold prices XAU= touched new record highs and inched closer towards the $4000/oz mark, which gold futures GCcv1 hit earlier in the day.

Adam Turnquist, chief technical strategist for LPL Financial in Charlotte, North Carolina said in a note that the $4,000 mark "also lines up near resistance from the upper end of a longer-term rising price channel," and a breakout above " would be a bullish sign for a continuation of the accelerating uptrend" while a failure could signal the melt-up in the commodity could be ready for a pause or retreat.

Among individual stocks, Tesla TSLA.O was down nearly 1.3% ahead of an event where it is expected to unveil a more affordable version of its best-selling Model Y SUV.

Fed Governor Stephen Miran on Tuesday said that the bond market’s current relative calm as measured by long-term interest rates supports a push to lower interest rates aggressively.

Federal Reserve Bank of Minneapolis President Neel Kashkari on Tuesday said that he is skeptical of the "grand declarations" by companies that can use artificial intelligence to rapidly replace workers, noting that previous technological developments took a long time to work their way into regular use in the economy.

Here's a market snapshot at 13:00 ET:

(Siddarth S)

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