US stocks slipped from their latest record-setting run on Tuesday, as Wall Street weighed worries over the government shutdown against hopes for artificial intelligence.
The Dow Jones Industrial Average (^DJI) fell 0.2%. The S&P 500 (^GSPC) dropped around 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) decreased roughly 0.7% after fresh record high closes on Wall Street.
The pullback in stocks comes after the S&P and Nasdaq both scored their seventh win in a row on Monday, boosted by news of a multibillion-dollar deal between AMD (AMD) and OpenAI (OPAI.PVT) that sent the chip company’s stock rocketing higher.
But the AI trade lost some steam Tuesday, led by a decline in Oracle (ORCL) stock after a report said the profit margin in its cloud computing business was likely lower than many Wall Street forecasts. Shares of Oracle fell as much as 7% throughout the day but closed 2% lower.
Tesla (TSLA) shares also lost steam, dropping 4%, after the EV maker unveiled a cheaper Model Y priced under $40,000 on Tuesday in a launch initially teased in a series of cryptic social media posts.
Earnings results will take on even greater prominence than usual for markets during the US government shutdown. The longer the federal stoppage drags on, the more clouded the picture of the economy will become for investors as key data releases dry up, making it hard to divine the path of interest rates.
It has already delayed the September jobs report that was due Friday. Next week’s releases on consumer and producer inflation, crucial to the Federal Reserve’s decision making, could also be postponed.
Meanwhile, the Washington gridlock on a funding bill continues. President Trump signaled he would negotiate with Democrats over the healthcare subsidies they want to extend but only after the government is reopened. He also amped up threats toward federal workers.
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Tue, October 7, 2025 at 8:01 PM UTC
Stocks retreat from record highs as Oracle shares sink
Stocks pulled back from record highs on Tuesday as Oracle (ORCL) shares fell after a report suggested the software giant’s cloud-computing margins may be smaller than what Wall Street anticipates.
The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) all fell less than 1% after the broader index and tech-heavy gauge notched new records in the prior session.
Stocks turned negative after a report from the Information stated that internal documents show Oracle’s overall gross margin has fallen to 67.3%, its lowest in more than a year, amid heavy spending on chips and data center expansion.
Oracle stock fell 7% before trimming losses. At the close, it was down 2%.
Tue, October 7, 2025 at 7:15 PM UTC
Gold’s melt-up could be due for a pause or pullback, says strategist
Gold could be due for a pullback following a massive year-to-date gain of more than 50%, warns one strategist.
Gold rallied to record highs above $4,000 on Tuesday after completing a seven-week winning streak.
“A breakout above the channel would be a bullish sign for a continuation of the accelerating uptrend,” said Adam Turnquist, chief technical strategist for LPL Financial.
“However, a failure here would suggest gold’s melt-up could be due for a pause or pullback,” he added.
Turnquist noted the latest leg higher has been underpinned by growing uncertainty over the US government shutdown and fear of missing out (FOMO) flows into physical gold ETFs, which reached record levels in September and the last quarter.
Tue, October 7, 2025 at 6:57 PM UTC
Tesla prices more affordable Model Y at under $40,000
Tesla (TSLA) has priced its Model Y SUV below $40,000 in its debut of a more affordable version of its bestselling car.
The standard model is offered in Stealth Grey for $39,990. White Pearl and Diamond Black-colored cars are offered at just over $40,000.
Meanwhile, the Model 3 standard is offered at just under $37,000.
Tesla shares declined on Tuesday after jumping 5% in the prior session in reaction to the EV maker’s social media posts over the weekend, which ignited excitement among the company’s fans.
Tue, October 7, 2025 at 6:00 PM UTC
Bull market ‘on track’ despite fears of AI bubble, says UBS
Megadeals with the AI industry have been fueling market euphoria.
OpenAI’s (OPAI.PVT) latest deals with heavyweights like AMD, Nvidia, Oracle, and Broadcom pushed the S&P 500 (^GSPC) into its seventh consecutive day of gains on Tues, its longest winning streak since May.
“With hundreds of billions in investment commitments and the bull market on track for its three-year anniversary, fears of an AI bubble that could rival the dotcom era are mounting. But there have been warnings of a bubble for almost as long as the AI boom has been in full swing,” said UBS strategists led by Ulrike Hoffmann-Burchardi, chief investment officer Americas and Global Head of Equities at UBS.
“In our view, a period of consolidation would not come as a surprise after such a strong recent run, but we believe the equity rally is underpinned by solid fundamentals that should continue to support the market.”
On Tuesday, tech stocks pulled back after a report suggested that Oracle’s (ORCL) cloud-computing margins may be smaller than what Wall Street has been estimating.
Tue, October 7, 2025 at 5:35 PM UTC
Oracle shares sink on report margins are smaller than what Wall Street expects
Oracle (ORCL) shares fell on Tuesday, weighing on the broader market after a report suggested the software giant’s cloud-computing margins are smaller than what Wall Street expects.
According to the Information, internal documents show Oracle generated about $900 million from renting Nvidia-powered servers during the quarter ended in August, but earned just $125 million in gross profit. The company’s overall gross margin fell to 67.3%, its lowest in more than a year, amid heavy spending on chips and data-center expansion.
The report said Oracle lost “considerable” sums on some smaller Nvidia chip rentals.
Oracle shares sank 3% during Tuesday’s session. Shares have surged more than 60% this year on surging AI demand and a deal with OpenAI (OPAI.PVT) to provide 4.5 gigawatts of data center capacity.
Tue, October 7, 2025 at 5:15 PM UTC
Income growth expectations slide to lowest since 2021 amid weak job market
Gold soars above $4,000 as ETFs see strongest quarter on record
Gold futures (GC=F) soared to all-time highs above $4,000 on Tuesday as investors piled into the precious metal amid a weakening dollar and growing expectations for more Federal Reserve rate cuts.
Meanwhile, global ETFs backed by gold just recorded their biggest quarterly inflows ever, per a World Gold Council report.
Stocks fluttered higher at the open as investors weighed the ongoing government shutdown against the AI engine in markets.
The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) all added about 0.1% after the indexes notched record highs on Monday.
Trilogy Metals (TMQ), International Business Machines (IBM), and Figma (FIG) were among the top trending tickers at the open.
Meanwhile, bonds held steady with the 10-year Treasury yield (^TNX) roughly unchanged at 4.15% and the 30-year yield (^TYX) slightly lower at 4.74%.
Gold futures (GC=F) continued to climb above the $4,000 per ounce milestone, hitting a record high of $4,006.50 per troy ounce near the open.
Tue, October 7, 2025 at 1:20 PM UTC
Qualcomm to acquire Arduino amid edge computing push
Qualcomm (QCOM) stock edged higher in premarket trading on Monday after the company announced that it is acquiring open-source hardware and software developer Arduino as it seeks to expand its footprint in the edge computing space and diversify beyond the smartphone market.
Global crypto exchange-traded funds (ETFs) drew record inflows of $5.95 billion for the week ending Oct. 4, as bitcoin surged to a record high, Reuters reports.
According to data from CoinShares, US crypto ETFs led with $5 billion in inflows, followed by Switzerland with $563 million and Germany with $312 million.
Constellation Brands stock pops as Corona maker calls out ‘dampened consumer demand’
Constellation Brands (STZ) stock has been significantly underperforming — down 37% year to date — and a challenging socioeconomic environment is making a turnaround difficult, the company said on Monday.
“In the second quarter of fiscal 2026 we continued to navigate a difficult socioeconomic environment that dampened consumer demand across the industry,” Constellation Brands CEO Bill Newlands said in an earnings release.
Newlands cited weakness in employment trends, softening consumer sentiment, and ongoing concerns from Hispanic consumers that are leading to fewer gatherings.
The maker of Corona and Modelo beer reported a profit of $2.65 per share in its fiscal second quarter, a marked improvement from its loss of $6.59 per share a year ago. However, net sales fell 7% and earnings missed Wall Street’s target of $3.32 per share. Revenue of $2.48 billion topped the Street’s expectations of $2.45 billion.
Constellation Brands also lowered its unadjusted outlook to $9.86-$10.16 a share from its previous forecast of $10.77-$11.07. Net sales are expected to decline 4% to 6% for the year.
The stock rose 3% in premarket trading on Tuesday, following the release of quarterly results after the bell on Monday.
Tue, October 7, 2025 at 11:30 AM UTC
The stakes of OpenAI’s dealmaking
OpenAI (OPAI.PVT) is on a dealmaking tear, notes Yahoo Finance’s Hamza Shaban, with the AMD megadeal just the latest example.
But OpenIA’s burst of partnerships underscores the stakes for a company going all-in on superintelligence, he argues in the takeaway from today’s Morning Brief:
Please note: Some US government economic data will not be released today due to the federal shutdown.
Economic data: Exports (August); Imports (August); Federal Reserve Bank of New York one-year inflation expectations (September); Consumer credit (August)
Novo Nordisk cuts production line jobs at key plant in US
Novo Nordisk (NVO) has laid off dozens of employees at its largest US manufacturing site. The Wegovy-maker is making cuts in a major restructuring under new CEO Mike Doustdar.
AMD (AMD) rose 4% in premarket trading on Tuesday following the announcement of a multibillion-dollar partnership with OpenAI (OPAI.PVT), one of the largest infrastructure deals to date.
Clarivate Plc (CLVT) rose 8% before the bell on Tuesday after announcing that Windbond Electronics Corporation has selected and implemented IPfolio, a cloud-based intellectual property (IP) management platform from Clarivate.
Ford (F) stock fell 1% before the bell following a late-night fire at a key part of a New York aluminum plant. Its absence could disrupt business at Ford Motor and other automakers for months to come.
