The Standard & Poor’s 500 Index rose following its first three-day slump since September, while gasoline and oil rallied and gold and silver slid. Emerging market stocks fell as a gauge of Chinese manufacturing missed estimates and the Federal Reserve said it may reduce stimulus.
The markets are getting prepared for a turning point in the ongoing government shutdown as well as the impending debt ceiling. The VIX has spiked, the bonds are looking tired and the stock market seems to be facing up to reality.
Gas soared on Friday on a string of refining issues. Gasoline went crazy as wholesalers were stunned by strong demand. Despite near record production, supplies are tightening and refining issues are making things jumpy.
Saudi Arabia, the world’s biggest oil exporter, is booking the most tankers in years to supply the U.S., a sign the kingdom is fulfilling a pledge to compensate for a decline in Iranian sales, according to Dahlman Rose & Co.