Wall Street Retreats Amid Shutdown, Tech Pressure
2025-10-07 20:02
By
Mojdeh Kazemi
1 min. read
US stocks retreated from record highs on Tuesday as investors weighed the ongoing government shutdown against hopes for AI-driven growth.
The S&P 500 fell 0.4% for the first time in 8 days, the Nasdaq lost 0.8%, and the Dow fell 99 points, pressured by a steep sell-off in Oracle shares after weaker-than-expected cloud margin reports.
Tesla slipped 4.4% after unveiling a low-cost Model Y, Ford tumbled 7.6% over a supplier fire, and gold futures surged past $4,000 per ounce as investors sought safe havens.
Economically sensitive sectors, including homebuilding, airlines, and transport, lagged, while tech stocks showed mixed results—AMD rose on an OpenAI deal and IBM advanced on an AI partnership.
With fresh economic data stalled, investors relied on secondary indicators and Federal Reserve remarks, which pointed to potential rate cuts amid uncertainty.
The extended shutdown continues to cloud the economic outlook, delaying key data and pressuring policymakers to reach a resolution.