04:59 PM EDT, 10/07/2025 (MT Newswires) -- The S&P 500 and the Nasdaq Composite fell from record highs as a federal government shutdown entered its seventh day on Tuesday, while gold prices rose above $4,000 for the first time amid rising global uncertainty.

The S&P 500 declined 0.4% to 6,714.6 following a seven-day advance. The tech-heavy Nasdaq fell 0.7% to 22,788.4, while the Dow Jones Industrial Average lost 0.2% to 46,603, the latter closing lower for a second consecutive session.

Among sectors, consumer discretionary saw the steepest decline, while staples led the gainers.

The government shutdown started Wednesday after US lawmakers failed to agree on a key spending bill. On Monday, the Senate for a fifth time failed to pass a House bill that would have temporarily funded the US government until Nov. 21, CNBC reported.

The shutdown continues to delay key US economic data, including the August trade report, which was slated for a Tuesday release.

"Apart from an escalation of the trade war, the biggest risk to the US expansion stems from a potential prolonged partial shutdown of the federal government," BMO Capital Markets said in a report.

A shutdown that lasts for five weeks would likely slow economic growth only moderately, but one that runs for a few months could lead to an economic contraction, Sal Guatieri, senior economist at BMO, wrote.

US Treasury yields were lower, with the 10-year rate decreasing 2.2 basis points to 4.13% and the two-year rate dropping 2.1 basis points to 3.58%.

Gold for December delivery was last up 0.7% at $4,004.90 per troy ounce in Tuesday trade. Spot gold gained 0.6% to $3,982.51 an ounce.

Gold prices are buoyed by investor hedging against economic and political risks amid expectations of more interest rate cuts from the Federal Reserve. In addition to the US government shutdown, political shakeups in France and Japan are fueling fiscal concerns, ING said in a report on Tuesday.

"With official data delayed, traders are relying on private reports for economic insight, while the central bank faces challenges in making monetary policy decisions," ING Commodities Strategist Ewa Manthey said in a separate note. "Still, markets are pricing in a quarter-point cut this month, which would further benefit gold, as it doesn't pay interest."

Silver fell 1.9% to $47.55 per ounce.

In economic news, US consumers' earnings growth expectations last month reached the lowest reading since April 2021, a survey by the New York Fed showed. The survey pointed to greater likelihoods of losing jobs, and a higher probability of an increase in overall unemployment.

Global trade growth in 2025 is expected to be stronger than previously projected amid rising demand for artificial intelligence-related products and front-loading of imports over tariff concerns, the World Trade Organization said. The organization lowered its growth outlook for next year.

West Texas Intermediate crude oil was up 0.6% at $62.03 a barrel in Tuesday late-afternoon trade.

In company news, Ford Motor ( F ) shares tumbled 6.1%, the second-steepest decline on the S&P 500. The company is among the automakers facing potential production disruptions following a recent fire at Novelis' Oswego aluminum plant in New York, The Wall Street Journal reported Monday, citing filings and unnamed sources.

Oracle (ORCL) shares dropped 2.5%. The cloud computing company is seeing thin profit margins in its fast-growing AI cloud server business, The Information reported Monday, citing internal documents.

McCormick ( MKC ) lowered its full-year earnings outlook Tuesday amid rising commodity costs and incremental tariffs, even as the spices and seasonings producer reported fiscal third-quarter results above market estimates. The company's shares lost 3.9%.

Dell Technologies ( DELL ) raised its long-term annual growth targets for earnings and revenue amid rising AI demand. The computer maker's shares rose 3.5%