Wall Street Cools After Record Highs as Stocks and Gold Pull Back
NEW YORK (AP) — Wall Street took a breather Thursday, with U.S. stocks and gold easing from record highs after a strong rally.
The S&P 500 slipped 0.3% from its latest peak — marking only its second loss in 10 sessions — while the Dow Jones Industrial Average dropped 243 points (0.5%) and the Nasdaq composite edged lower by 0.1%.
Gold prices, which have soared this year, also retreated, falling 2.4% to dip below $4,000 per ounce. Treasury yields held mostly steady as investors paused after weeks of gains fueled by optimism that the Federal Reserve will soon cut interest rates to bolster the economy.
Markets have rallied sharply — the S&P 500 has surged 35% since April’s low — sparking concern that valuations may have become overheated, especially among AI-related stocks.
Among individual movers, Dell Technologies slid 5.2%, the biggest drop in the S&P 500, despite being up nearly 11% for the week after highlighting its AI growth outlook. Tesla lost 0.7% after regulators opened an investigation into its “Full Self-Driving” system.
Offsetting some of those declines, Delta Air Lines climbed 4.3% after reporting stronger-than-expected quarterly earnings and a bullish profit forecast for the year’s final quarter, citing improved sales trends and a rebound in business travel.
With the U.S. government shutdown delaying key economic data such as unemployment claims, investors are leaning more heavily on corporate earnings to gauge the economy’s health.
Elsewhere, PepsiCo jumped 4.2% on better-than-expected profits and stronger North American beverage sales. Akero Therapeutics soared 16.3% after Novo Nordisk announced a potential $5.2 billion acquisition, while MP Materials rose 2.4% following China’s new export restrictions on rare earth materials. Costco Wholesale gained 3.1% as September revenue climbed 8% year-over-year.
By the close:
- S&P 500: ↓ 18.61 to 6,735.11
- Dow Jones: ↓ 243.36 to 46,358.42
- Nasdaq: ↓ 18.75 to 23,024.63
Overseas, results were mixed. Ferrari shares plunged 15.4% in Italy after releasing underwhelming forecasts, while Shanghai’s market rose 1.3% on reopening after a holiday. Japan’s Nikkei 225 advanced 1.8%, led by an 11.4% surge in SoftBank Group after it announced a $5.4 billion purchase of ABB’s robotics division.
In bonds, the 10-year Treasury yield inched up to 4.14% from 4.13% the previous day.
