Stocks End Lower After S&P 500, Nasdaq Hit Fresh Records; Gold Falls Below $4,000; Delta, Pepsi Pop on Strong Results

U.S. equities ended slightly lower Thursday as investors took profits following fresh record highs in the S&P 500 and Nasdaq Composite, while ongoing political gridlock in Washington and a pullback in gold and crude added to a cautious tone. Both the S&P 500 and Nasdaq had notched record closes Wednesday, their eighth gain in nine sessions, before pausing amid light volume and rotation beneath the surface.

Key Headlines & Market Movers

• AI Leadership Expands Beyond U.S. Borders: Nvidia’s export approvals to the UAE and Saudi Arabia mark a major step in diversifying away from China, positioning the company as the core beneficiary of Trump’s AI diplomacy. Analysts see this as a structural positive for U.S. semiconductor dominance.

• Rotation Without Retreat: Despite record highs, the pullback was orderly. Funds flowed into Consumer Staples and large-cap defensives, while the broader AI trade remained intact.

• Shutdown Risk Contained: Nine days in, markets remain complacent about the government closure. However, delayed data releases and growing pressure from unpaid federal workers could test sentiment in coming weeks.

• Gold Takes a Breather: After breaching $4,000 for the first time ever, gold’s dip to $3,990 looks like technical consolidation, not a reversal. Safe-haven flows remain robust given global policy and political uncertainty.

S&P 500 Sector Performance

Looking Ahead

The equity market’s advance remains orderly and supported by earnings momentum, even as valuations stretch. With the Fed minutes showing support for further rate cuts, liquidity remains abundant. Investors appear to be rotating, not retreating, from the AI-led growth story which is a hallmark of mid-cycle resilience rather than speculative euphoria.

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