US Stocks Fall for 2nd Day as AI and Fed Worries Mount
2025-09-24 20:00
By
Mojdeh Kazemi
1 min. read
US equities dipped for a second straight day on Wednesday as investors weighed pressure on AI leaders, mixed signals from the Federal Reserve, and profit-taking near record levels.
The S&P 500 lost 0.3%, Nasdaq 100 and Dow Jones each slipped 0.4%, extending Tuesday’s pullback that ended a three-day winning streak.
Nvidia dropped nearly 1% after unveiling a $100 billion partnership with OpenAI, while Oracle lost 1.7% and Micron Technology sank 2.9% despite posting stronger-than-expected earnings.
In contrast, Alibaba’s pledge to boost AI spending beyond its initial $50 billion commitment lifted its US-listed shares by 8.2%.
Still, sentiment was pressured by worries over elevated valuations, as Fed Chair Jerome Powell reiterated that inflation and labor market risks persist while cautioning that equity prices remain stretched.
On the economic front, new home sales unexpectedly surged in August, offering a bright spot against concerns of slowing growth and seasonal market weakness.