Wall Street Today: S&P 500, Nasdaq Comp and DJIA Pull Back From Record Highs as Nvidia and Apple Fade
The S&P 500 and Dow-30 briefly touched record intraday highs Tuesday before ending lower as Apple, Nvidia and Oracle's recent rallies ran out of gas and Fed chief Jerome Powell warned that U.S. stocks look "fairly highly valued."
The $Nasdaq Composite Index (.IXIC.US)$ fell 223.22 points (1%) to a 22,565.75 finish, while the $S&P 500 Index (.SPX.US)$ shed 41,64 ticks (0.6%) to 6,652.11 and the $Dow Jones Industrial Average (.DJI.US)$ gave back 103.11 points (0.2%) to 46,278.43.
The S&P 500 had hit a 6,699.52 all-time intraday record early in the session before heading south, while the Dow-30 touched a 46,714.27 best-ever intraday peak before turning lower.
In fact, all three of Wall Street's key indexes had been setting record intraday closing highs several times in recent days – most recently on Monday, when they rose in part on strength for key index components $Apple (AAPL.US)$and $NVIDIA (NVDA.US)$.
However, both NVDA (down 2.8%) and AAPL (off 0.6%) gave back some of their recent gains on Tuesday, as did recent high-flyer $Oracle (ORCL.US)$, which ended the session 4.4% lower.
Macro
Apple, Nvidia and Oracle all eased after several days of strong gains.
For instance, ORCL rose 35.9% between its Sept. 9 close and Monday's finish after reporting well-received earnings and forward guidance earlier this month. (All of the gains actually came on Sept. 10, with ORCL swinging up and down since then.)
Meanwhile, Apple gave back part of the 7.5% increase that it saw Friday and Monday following the iPhone 17's official release last week.
Similarly, NVDA reversed gears Tuesday after rising 7.8% over Friday and Monday in part on word that it plans to invest $100 billion in artificial-intelligence powerhouse OpenAI. Nvidia had even hit a $184.55 all-time intraday high during Monday's session.
Beyond the three tech giants' pullbacks, markets also fell Tuesday after Federal Reserve Chairman Jerome Powell made a rare public comment on stocks' recent high levels.
Answering an audience question following a Providence, R.I., speech, the Fed chief – who doesn't often discuss markets -- said that "we do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we're trying to achieve. ... By many measures, for example, equity prices are fairly highly valued."
However, Powell added that he did not currently see "elevated financial-stability risks."
Moo-vers
All of the "Magnificent Seven" stocks followed the broad indexes and ended Tuesday's session lower.
$Amazon (AMZN.US)$ led the way downward by giving up 3%, followed by the aforementioned $NVIDIA (NVDA.US)$ and its 2.8% decline.
$Tesla (TSLA.US)$likewise dropped 1.9%, while $Meta Platforms (META.US)$ lost 1.3%, $Microsoft (MSFT.US)$ shed 1%, $Apple (AAPL.US)$gave back the previously noted 0.6% and $Alphabet-A (GOOGL.US)$ eased 0.3%.
Elsewhere on Wall Street, Tuesday's other noteworthy percentage decliners included:
-- $Opendoor Technologies (OPEN.US)$, down 15.5%. The homebuying platform and meme stock sank for a fourth straight session, in part after hedge-fund manager George Noble called the company "total garbage" on social media on Monday. OPEN has lost 34.9% since hitting a 3-1/2-year intraday high of $10.87 on Sept. 17.
-- $NuScale Power (SMR.US)$, off 7.5%. The next-generation nuclear-power stock consolidated after gaining 34.5% between its $35.13 session low last Thursday and its $47.26 intraday high on Monday. Atomic stocks had been rising after the United States and United Kingdom agreed during U.S. President Donald Trump's visit to London last week to jointly develop next-generation nuclear power.
-- $Plug Power (PLUG.US)$, 4.7% lower. The "green-hydrogen" energy firm eased following a nine-session rally that saw its stock gain 87.9% between its Sept. 9 $1.41 close and Monday's $2.65 finish.
Conversely, Tuesday's significant percentage gainers included:
-- $Better Home & Finance (BETR.US)$, up 35.6% Tuesday and 98.7% since Friday's close. The artificial-intelligence-powered mortgage lender soared for a second day after hedge-fund investor Eric Jackson lauded it on social media. Jackson sparked the recent rally in Opendoor with similar touts.
-- $BigBear.ai Holdings (BBAI.US)$, which rose 12.9%. The AI-powered decision-solutions firm rose for a ninth straight session on word Tuesday that military forces will use some of its technology at a U.S. Navy-sponsored maritime exercise. BBAI has gained 68.9% since its Sept. 10 close.
-- $AST SpaceMobile (ASTS.US)$, better by 12.2%. The space-based broadband network firm rose on published reports speculating that Mexican telecommunications billionaire Carlos Slim might soon make a substantial investment in the firm.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
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Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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webguybob : Expected.
真顺 : When compared to gold, the valuation of the U.S. stock market appears much more reasonable.