Dow hits record as funding deadline nears and gold surges

U.S. stocks rose Tuesday as investors shrugged off the immediate threat of a government funding lapse and shifted focus to incoming economic data, while gold surged to fresh highs. The S&P 500 and Nasdaq posted gains and the Dow Jones Industrial Average closed at a record, even as lawmakers approached a midnight deadline for government funding and traders prepared for a closely watched monthly jobs report later in the week.

Equities climbed as Treasury yields eased from recent highs and investors rotated into defensive and value-oriented sectors. The S&P 500 rose about 0.4 percent, the Nasdaq added roughly 0.3 percent and the Dow gained about 0.2 percent to finish at a record level, buoyed by gains in industrial and defense names such as Lockheed Martin and Boeing. The dollar was slightly weaker, with EUR USD trading near 1.171 and USD JPY around 148.7, and major currencies showed little movement ahead of key developments this week.

Precious metals led the day’s moves, with gold jumping nearly 2 percent to trade above $3,800 an ounce and silver testing levels above $47 as buyers sought safe-haven assets. Traders said expectations for further Federal Reserve easing, uncertainty...