GLOBAL MARKETS-Stock indexes climb,? gold gains further above $4,000 amid rate cut hopes

(Updates to midday)

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Gold shows no sign of stopping

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Yen at lowest since February; intervention risk rises

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U.S. stock higher; Fed minutes ahead

By Caroline Valetkevitch and Amanda Cooper

NEW YORK/LONDON, Oct 8 (Reuters) - Major stock indexes rose on Wednesday as investors waited for minutes from the last Federal Reserve meeting, while gold extended its recent rally above $4,000 an ounce as a prolonged U.S. government shutdown and expectations of further U.S. interest rate cuts drove demand for the safe-haven asset.

Gold, which is traditionally seen as a store of value during times of instability, is up 54% year-to-date, after gaining 27% in 2024. Spot gold was last up 1.41% at $4,039.81 an ounce, while U.S. gold futures for December delivery gained 1.5% to $4,063.70.

Shares of gold miners also rose, including U.S.-listed shares of Gold Fields, up 3.8%.

The Japanese yen reached its weakest level since mid-February against the dollar as investors worried about an increase in fiscal spending in Japan, while the euro fell on ongoing political uncertainty in France. On Wall Street, stocks rebounded from Tuesday's declines, with technology shares leading the way higher. Nvidia (NVDA) shares were up 1.6%.

"It's rebounding nicely, led by Nvidia (NVDA) and AI-related stocks. It comes down to investors have been optimistic since April, and that optimism continues to be expressed in spite of a government shutdown, a slowing employment market or any other red flags that would normally detract investors," said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut.

Investors have been without most U.S. economic data as the federal government remains shut. But the Fed will release minutes from its September meeting later on Wednesday, which will be scoured for any new clues on Fed policy. The central bank is widely expected to cut rates by 25 basis points at its October 28-29 meeting, according to the CME Group's FedWatch Tool.

The Dow Jones Industrial Average rose 53.16 points, or 0.11%, to 46,656.14, the S&P 500 rose 26.47 points, or 0.39%, to 6,740.96 and the Nasdaq Composite rose 152.53 points, or 0.67%, to 22,940.90. MSCI's gauge of stocks across the globe rose 3.05 points, or 0.31%, to 995.21. The pan-European STOXX 600 index rose 0.84%. In France, caretaker Prime Minister Sebastien Lecornu said on Wednesday a deal could potentially be reached on the country's budget by year-end, making the risk of a snap election more remote.

His cautiously optimistic tone helped a modest rally in French bonds, leaving OAT yields down 5.3 basis points on the day at 3.52%, but the euro extended recent declines and last down 0.39% at $1.161.

In Japan, the surprise election of Sanae Takaichi to lead the country's ruling Liberal Democratic Party on Saturday has dented the yen on expectations of greater government stimulus. Against the yen, the dollar was last up 0.45% at 152.59. It earlier reached 152.99, the highest since February 14.

The yield on benchmark U.S. 10-year notes was down 1.4 basis points to 4.113%, versus 4.127% late on Tuesday.

Oil prices were higher. U.S. crude rose 1.8% to $62.84 a barrel and Brent rose to $66.45 per barrel, up 1.53% on the day.