Nasdaq, S&P 500, and Dow Retreat as Rally Cools and Gold Crosses $4,000
U.S. equity markets pulled back on Tuesday after a record-setting streak, as risk appetite faded and investors shifted toward safety. The S&P 500 (^GSPC) fell 0.58% to 6,700.98, the Nasdaq Composite (^IXIC) slipped 0.94% to 22,725.45, and the Dow Jones Industrial Average (^DJI) eased 0.38% to 46,517.29. The market, fueled by a weeklong AI-driven advance, encountered its first real hesitation as profit-taking intensified and the ongoing government shutdown entered its second week. Despite intraday strength at the open, the three major benchmarks reversed as economic uncertainty overshadowed optimism surrounding upcoming earnings. The tech-heavy Nasdaq, which led the 2025 advance, faced selling pressure after Oracle’s sharp slide dragged sentiment across the semiconductor complex. The Russell 2000 also dropped 1.21% to 2,456.30, reflecting weakness in small-cap risk. Market internals showed two declining stocks for every gainer on the NYSE, signaling cautious positioning ahead of a week loaded with political and monetary catalysts.
Gold Surpasses $4,000 as Investors Seek Shelter from Policy and Shutdown Risks
The historic milestone in gold prices underscored growing anxiety across global markets. COMEX gold futures (GC=F) surged 0.46% to $3,994.60 per ounce, after earlier touching a record $4,006.50, breaking above the psychological barrier for the first time in history. The rally has been driven by expectations of further rate cuts, persistent inflation worries, and a deepening government stalemate that has frozen critical U.S. economic data. The World Gold Council confirmed record quarterly ETF inflows totaling $26 billion, while trading volume jumped 34% month-over-month as gold registered 13 new all-time highs in September alone. Hedge fund titan Ray Dalio stated at the Greenwich Economic Forum that “investors should hold 15% of portfolios in gold,” emphasizing its defensive strength amid deficits and rising geopolitical tensions. Goldman Sachs now forecasts the metal to hit $4,900 per ounce by December 2026, as central banks continue large-scale purchases and retail investors use ETFs as inflation insurance.
AMD (NASDAQ:AMD) Extends Its Record Run on OpenAI Partnership and AI Momentum
The standout mover of the session was Advanced Micro Devices (NASDAQ:AMD), rising another 3.29% to $210.42, after a stunning 24% surge Monday that lifted the stock to fresh all-time highs. With a market capitalization of $349 billion, AMD’s agreement with OpenAI marks one of the largest infrastructure collaborations in the AI space. CEO Lisa Su said critics of AI expansion are “thinking too small,” highlighting that the deal gives AMD long-term recurring revenue from AI data centers and positions it as a direct competitor to NVIDIA (NASDAQ:NVDA). AMD now trades nearly 110% higher year-to-date, cementing its role as the S&P 500’s primary growth engine. The news helped offset Oracle’s decline, which weighed heavily on the Nasdaq after reports that Oracle (NYSE:ORCL) lost approximately $100 million renting Nvidia’s Blackwell chips last quarter. Oracle’s stock tumbled 5.92% to $103.61, contributing to broader volatility in the semiconductor sector.
Tesla (NASDAQ:TSLA) Holds Momentum Ahead of Potential New Model Y Reveal
Tesla Inc. (TSLA) traded 0.20% lower at $438.77, cooling after Monday’s 5.5% gain to $453.25. Market chatter continues to center on the company’s cryptic social media posts hinting at a product reveal, with speculation that a new low-end Model Y or a refreshed Roadster could be announced. Retail sentiment remains firmly bullish, as Stocktwits message volume on Tesla rose sharply overnight, with traders predicting a surge if Musk delivers a new consumer model. Year-to-date, Tesla shares are up 12%, rebounding from a difficult first half of 2025. The stock remains below its all-time high of $465.33 reached in December 2025 but is trading well above its Q2 consolidation range. Analysts note that Tesla’s push toward affordability and potential collaboration with Archer Aviation (NYSE:ACHR) and Joby Aviation (NYSE:JOBY) could reshape the electric mobility narrative heading into 2026.
Trilogy Metals (NYSEAMERICAN:TMQ) Skyrockets 216% After U.S. Government Buys 10% Stake
One of the most dramatic single-day moves on Wall Street came from Trilogy Metals Inc. (TMQ), which soared 216.75% to $6.62, following confirmation that the Trump administration purchased a 10% equity stake valued at $35.6 million, along with warrants for another 7.5% ownership. The investment includes authorization for construction of a 211-mile access road to Alaska’s Ambler Mining District, unlocking vast reserves of copper, cobalt, and rare minerals. The decision underscores the administration’s commitment to resource independence and securing domestic mineral supply chains amid escalating trade friction with China. The White House’s approach mirrors earlier acquisitions of stakes in Lithium Americas (NYSE:LAC) and MP Materials (NYSE:MP). Retail traders labeled TMQ “the most undervalued U.S. mining play of the decade,” with the stock experiencing message volume spikes exceeding 300% within hours.
