US Stock Market Sees Declines
NEW YORK (AP) – US stock indices took a hit on Tuesday, with Wall Street showing signs of a pause after a remarkable rally.
The S&P 500 dropped by 0.6%. The Dow Jones industrial average slid 88 points (0.2%), while the Nasdaq composite fell by 0.9%. This marks the first decline for the indices following three consecutive days of reaching all-time highs. Since hitting a low in April, the US stock market has faced scrutiny for what some perceive as excessive growth and high valuations. Federal Reserve Chair Jerome Powell remarked on Tuesday that the market seems “very highly valued.”
Nvidia particularly influenced the market’s downturn after retracting some of its gains from the previous day, following a partnership announcement with OpenAI to develop a data center. The influential tech stock fell by 2.8%.
Other prominent technology companies, which had propelled Wall Street to its record levels, also saw declines. Amazon decreased by 3%, and Microsoft dipped by 1%.
On a different note, Uzbekistan Airlines declared its intention to purchase 14 Dreamliner aircraft from Boeing, which, along with the announcement of potentially adding eight more to the order, led to a 2% uptick in Boeing’s stock, helping to soften market losses.
Kamboo’s stock rose by 1.6%, recovering some of its earlier slump prompted by President Trump’s concerns about Tylenol products and their potential connection to autism risks in children. Trump issued warnings to pregnant women about Tylenol, although it seems he didn’t refer to any significant new research to substantiate his claims, while Kenvue has questioned this link.
The S&P 500 fell to 6,656.92, losing 36.83 points. The Dow Jones industrial average decreased from 46,292.78 by 88.76 points, and the Nasdaq composite slipped from 22,573.47 by 215.50 points.
Meanwhile, gold has continued its impressive surge, briefly surpassing $3,800 per ounce. So far this year, it has gained nearly 45%, outpacing US stock markets amid expectations that the Fed might lower interest rates to cool the job market.
Concerns about persistently high inflation, alongside significant government debt, have contributed to rising gold prices. Powell reiterated on Tuesday that inflation remains a challenge, exceeding the 2% target. This was his first official commentary following the Fed’s rate cuts last week.
Fed officials are considering further rate reductions by the year’s end, but they remain cautious, as lower rates could exacerbate inflation.
A report coming out Friday will reveal how much consumer prices are climbing, based on the Fed’s preferred inflation metric, with economists anticipating a slight increase from the previous month.
Preliminary data indicate that business activity in the US is still on the rise, though it’s slowing due to rising tariffs. According to S&P Global, companies may struggle to fully transfer these increased costs to their customers because of reduced demand and intense competition.
The data suggests inflation may ease for US households, but likely won’t drop below the Fed’s 2% target in the near future, according to Chris Williamson, chief business economist at S&P Global Market Intelligence.
In the bond market, Treasury yields for 10-year notes fell from 4.15% to 4.11% late Monday.
International stock markets showed mixed results, reflecting modest fluctuations across Europe and Asia. France’s CAC 40 climbed by 0.5%, while Hong Kong’s Hang Seng index declined by 0.7%. The Japanese stock market was closed due to public holidays.
