Stock Indexes End Lower After S&P 500, Nasdaq Reach New Highs; Safe-Haven Gold Hits Record $4,000

U.S. stocks pulled back Tuesday after touching fresh intraday highs, as profit-taking and renewed concern about AI profitability halted the S&P 500’s seven-day winning streak. Investors rotated slightly toward safe havens, pushing gold above $4,000 an ounce for the first time, while ongoing political gridlock in Washington kept markets cautious. The government shutdown entered its second week with little sign of progress, weighing on sentiment even as select corporate and commodity stories drove notable individual moves.

Key Headlines & Market Movers

• Tech Pause After Record Run: The S&P 500 slipped 0.4% and the Nasdaq fell 0.7% following record intraday highs, with Oracle leading tech decliners on reports of weaker-than-expected cloud margins and losses tied to AI chip rentals. The news fueled concerns that AI-related capital spending may be outpacing near-term returns, prompting investors to take profits after a strong multi-session rally. AMD still gained nearly 4% after Monday’s 24% surge on its OpenAI partnership, underscoring continued enthusiasm for AI infrastructure despite valuation concerns.

• Gold Hits $4,000 as Shutdown Drags On: Safe-haven demand lifted gold to its first-ever close above $4,000 per ounce, as investors hedged against the economic fallout from the weeklong government shutdown. With key federal data releases stalled and negotiations deadlocked along party lines, traders moved into Treasurys and gold. The 10-year yield eased to 4.12%, while the dollar index rose to 98.61, reflecting risk aversion amid policy uncertainty.

• Resource Stocks Surge on U.S. Mineral Push: Trilogy Metals shares skyrocketed more than 200% after the Trump administration reversed a prior mining ban and took a 10% stake in the company to support the Ambler Road copper and cobalt project in Alaska. The decision signals a broader policy push to expand domestic access to critical minerals essential for EVs and AI hardware. Copper futures rose more than 1% on the news, highlighting renewed confidence in U.S. resource development as part of the administration’s supply-chain strategy.

• Mixed Corporate Moves Reflect Uneven Sentiment: AppLovin rebounded 7.6% after yesterday’s steep drop on SEC investigation reports, while Tesla fell 4.4% following the unveiling of lower-priced Model 3 and Model Y vehicles. IBM rose modestly on AI integration news with Anthropic, and Ford slid over 6% amid concerns about supply disruptions from a supplier fire. The blend of optimism and caution reflected a market reassessing near-term earnings risks after an extended rally.

S&P 500 Sector Performance

Looking Ahead

Markets remain resilient but are entering a more cautious phase as investors weigh stretched valuations, political uncertainty, and questions around AI profitability. The ongoing shutdown and upcoming Fed commentary later in the week could add volatility. While the long-term growth narrative tied to technology, minerals, and infrastructure remains intact, the near-term focus will likely shift toward sustainability of earnings and the pace of policy resolution in Washington.

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