Stock Market Today: Nasdaq 22,535, Dow 46,240, S&P 500 6,648 as NVDA, BABA, TSLA Drive Action

Wall Street Pauses as AI Trade Faces Scrutiny

The S&P 500 (^GSPC) drifted near 6,648 on Wednesday, essentially flat after snapping a three-day winning streak. The Dow Jones Industrial Average (^DJI) traded at 46,240, down about 0.1%, while the Nasdaq Composite (^IXIC) slipped 0.2% to 22,535. Fed Chair Jerome Powell’s reminder that equities look “fairly highly valued” added to investor caution. Markets are now watching upcoming jobless claims and the Fed’s PCE inflation report for direction, while political risk around a potential government shutdown remains a cloud.

Nvidia (NASDAQ:NVDA) and Oracle (NYSE:ORCL) Lose Momentum

Nvidia (NVDA), which surged earlier this week on a $100 billion deal with OpenAI, gave back gains, slipping 0.5% to $177.49. Questions are mounting about whether demand for AI chips can match massive investment commitments. Oracle (ORCL) fell more than 3% to $303.85 after announcing a multibillion-dollar bond issuance that spooked investors already worried about AI euphoria cooling. These pullbacks signaled a pause in the relentless AI trade that had powered the Nasdaq to record highs.

Micron Technology (NASDAQ:MU) Delivers but Shares Drop

Micron (MU) reported quarterly revenue of $11.32 billion and EPS of $3.03, both above consensus. It guided fiscal Q1 revenue toward $12.5 billion, well ahead of Wall Street’s $11.9 billion view. Despite the beat, MU slipped 2.7% to $161.80 as hedge funds highlighted softer HBM sales of about $2 billion and warned of looming competition from Samsung (005930.KS). Still, JPMorgan boosted its price target from $185 to $220, projecting more than 32% upside.

Alibaba (NYSE:BABA) Powers Chinese Tech Higher

Alibaba (BABA) surged 9% to $177.85 after CEO Eddie Wu announced AI investments beyond its prior $53 billion commitment. The company’s Qwen AI models and global cloud expansion reinforced optimism that Alibaba can keep pace in the $4 trillion AI race. The rally lifted Baidu (NASDAQ:BIDU) up 3% and Pony AI by 2%. In Hong Kong, SMIC (0981.HK) added nearly 6% and Hua Hong (1347.HK) rose 4%, reflecting spillover from BABA’s aggressive positioning.

Lithium Americas (NYSE:LAC) Explodes on Trump Stake Reports

Lithium Americas (LAC) skyrocketed 99% to $6.12 after Reuters reported the Trump administration is seeking up to a 10% equity stake as part of a renegotiation of its $2.26 billion DOE loan. The project at Thacker Pass, backed by General Motors (NYSE:GM), is set to become the largest U.S. lithium mine by 2028. The move follows Trump’s similar interventions in Intel (NASDAQ:INTC) and MP Materials (NYSE:MP), signaling an aggressive push for domestic control of critical minerals.

Tesla (NASDAQ:TSLA) Extends Record Run

Tesla (TSLA) jumped 3% to $438.55 after Mizuho Securities raised its price target to $450 from $375, citing minimal tariff impacts and optimism for robotaxi adoption. The rally placed TSLA at its highest closing level of 2025. A proposed $1 trillion Musk pay package and his own $1 billion insider stock purchase reinforced confidence that Tesla’s management incentives are aligned with long-term expansion.

Marvell Technology (NASDAQ:MRVL) Announces $5B Buyback

Marvell (MRVL) climbed 3.7% to $77.35 after authorizing a $5 billion share repurchase. CEO Matt Murphy emphasized confidence in the company’s AI-driven growth strategy. MRVL, a key supplier to Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOGL), and Meta (META), has lagged in 2025 with shares down 30%, making the buyback a bold move to stabilize sentiment.

Housing Sector Rebounds on Sales Data

The iShares U.S. Home Construction ETF (ITB) rose 0.6% to $107.65 after Commerce Department data showed new home sales surged 20% in August to 800,000 units, the highest since early 2022. Builders Lennar (LEN) gained 2%, LGI Homes (LGIH) 1%, and M/I Homes (MHO) 1.2%. The figures outpaced economist forecasts of 650,000, suggesting resilience in housing despite high mortgage rates.

Commodities: Gold and Oil Move Divergently

Gold (GC=F) retreated 0.9% to $3,782 per ounce after touching new highs near $3,800. Banks like Goldman Sachs maintain forecasts toward $4,000 in 2026 as easing Fed policy supports bullion. Oil, however, extended gains: Brent (BZ=F) traded at $68.90, up nearly 2%, while WTI (CL=F) hovered at $64.72, up 2.1%. The drawdown in U.S. inventories and delays in Kurdish pipeline flows to Turkey reinforced tight supply.

Macro Pressure: Fed Division and Shutdown Risk

Fed unity is fraying. Newly appointed governor Stephen Miran argued rates should be 200 basis points lower than the current 4–4.25% range, while Atlanta Fed President Raphael Bostic urged caution on inflation. Powell reiterated that there is “no risk-free path,” underscoring fragile consensus. Meanwhile, political risk escalated after President Trump canceled talks with Democratic leaders, heightening shutdown risks as the Sept. 30 funding deadline looms.

Final Market Call:

• Indices The S&P 500 (^GSPC) at 6,648 and the Dow Jones Industrial Average (^DJI) at 46,240 are consolidating after a record run. Despite Powell’s “highly valued” warning, earnings momentum, AI capital flows, and resilient housing suggest the pullback is more digestion than reversal. The Nasdaq Composite (^IXIC) at 22,535 is vulnerable to AI volatility but still supported by inflows. My stance: Hold on S&P 500 and Dow, Buy on Nasdaq as long as NVDA and AI-linked earnings keep delivering.

• Stocks → NVDA (Buy), ORCL (Hold), MU (Buy), BABA (Buy), LAC (Strong Buy), TSLA (Buy), MRVL (Buy)

That's TradingNEWS