US gas prices set a record for the Labor Day holiday, which is bad for drivers, travel spending, and the wider economy.

• The national average topped $4 a gallon for the first time ever on Labor Day, up about a dollar from a year ago.
• Middle East fighting and disruptions to global fuel supplies are keeping prices high.
• Flying costs more too, with fares to the most popular US destinations up 20% from last year.
• Higher gas, rent, and electricity bills leave people with less to spend on eating out and vacations, which is what drives the economy.
• Gold and silver have already fallen hard, and stocks are the last thing still holding up, propped by a handful of big companies running on debt and AI hype.

Outlook: With consumers squeezed on every side, a broader downturn looks likely before interest rates come down.