US stocks slipped from their latest record-setting run on Tuesday, as Wall Street weighed worries over the government shutdown against hopes for AI.
The Dow Jones Industrial Average (^DJI) fell 0.4%. The S&P 500 (^GSPC) also dropped 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) decreased 0.7% after fresh record high closes on Wall Street.
Gold (GC=F) futures topped $4,000 per ounce for the first time ever, as investors continue to flock to the safe-haven asset.
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.
Overall, the deal added fuel to the AI-based fire that has powered stocks’ bull market run to record highs. Strategists are once again raising their targets for the S&P 500, though much rests on the upcoming earnings season performance by Big Tech names.
On Tuesday, Oracle (ORCL) stock fell after a report said the profit margin in its cloud computing business was likely lower than many Wall Street forecasts.
Tesla (TSLA) shares also lost steam, ahead of what Wall Street anticipates is the launch of a new Model Y on Tuesday, after teasing the possibility in a series of cryptic posts on social media.
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, a potential crack in the Washington gridlock on a funding bill has emerged, after President Trump signaled he was open to negotiating with Democrats over the healthcare subsidies they want to extend.
LIVE 20 updates
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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.
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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.
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Income growth expectations slide to lowest since 2021 amid weak job market
Yahoo Finance’s Emma Ockerman reports:
Read more here.
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Why small-cap stocks are starting to see earnings growth after best quarter since 2021
Yahoo Finance’s Jake Conley reports:
Read more here.
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CEOs send Trump a warning: Tariffs will pound our business — and we’ll raise prices
Yahoo Finance’s Francisco Velasquez reports:
Read more here.
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Trilogy Metals stock explodes on news of 10% stake by Trump admin and EO ordering permits for Alaska road
Yahoo Finance’s Jake Conley reports:
Read more here.
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A healthcare compromise could end the shutdown. The question is when.
Yahoo Finance’s Ben Werschkul reports:
Read more here.
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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.
Yahoo Finance’s Ines Ferré reports:
Read more here.
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Stocks inch higher at the open
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.
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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.
Yahoo Finance’s Daniel Howley reports:
Read more here.
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Global crypto ETFs attract record $5.95 billion
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.
Bitcoin (BTC-USD) attracted $3.55 billion, ether (ETH-USD) drew $1.48 billion, solana (SOL-USD) $706.5 million, and XRP (XRP-USD) $219.4 million.
Read more here from Reuters.
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AMD CEO Lisa Su says AI critics are ‘thinking too small’ after massive OpenAI deal
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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.
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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:
Read more here.
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Good morning. Here’s what’s happening today.
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)
Earnings calendar: McCormick & Company (MKC)
Here are some of the biggest stories you may have missed overnight and early this morning:
The stakes of OpenAI’s dealmaking
Trilogy Metals stock spikes on US plan to take 10% stake
AI critics are ‘thinking too small,’ says AMD chief
Tesla expected to unveil lower-cost Model Y in push to reignite sales
OpenAI sent these stocks soaring with mere mentions
Novo Nordisk cuts jobs on production line at key US plant
World Bank cuts South Asia outlook on Trump tariffs to India
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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.
Reuters reports:
Read more here.
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Premarket trending tickers: AMD, Clarivate and Ford
Here’s a look at some of the top stocks trending in premarket trading:
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.
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Tesla confirms plans to roll out lower-cost Model Y as part of sales revival push
Tesla (TSLA) is planning to unveil a more affordable version of its best-selling Model Y SUV, as the electric vehicle maker seeks to reverse falling sales amid rising competition.
Reuters reports:
Read more here.
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Trilogy Metals stock skyrockets on US plan to take 10% stake
Shares of Trilogy Metals (TMQ) roughly tripled in price on Wall Street, up around 180% in premarket trading.
Late Monday, the White House said the US is taking a 10% stake in and has warrants for another 7.5% of the Canadian minerals exploration company. The purchase is part of a $35.6 million investment to gain access to mineral deposits in Alaska.
Bloomberg reports:
Read more here.
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Gold pushes towards $4,000 an ounce as insecurity takes hold
Bloomberg reports:
Read more here.
