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US stock market retraced on Tuesday, October 7, 2025, as investors weighed concerns about the ongoing government shutdown and disappointing news from tech giant Oracle. The S&P 500 index declined 0.4%, marking its first drop in eight days, while the Nasdaq Composite fell 0.7%. The Dow Jones Industrial Average also slipped 105 points, or 0.2%.

Oracle shares led the tech sell-off, tumbling over 5% following reports that the company is generating lower-than-expected margins in its cloud business and losing money on Nvidia chip rentals. This news added to investor worries about the strength of artificial intelligence demand, a key driver of recent market gains.

The US government shutdown entered its seventh day after the Senate failed once again to pass a funding bill, prolonging uncertainty in Washington. This political stalemate delayed the release of key economic data such as the September jobs report, limiting market insight into the economy and complicating Federal Reserve policy decisions.

Safe-haven gold futures surged above $4,000 per ounce for the first time, reflecting investor caution amid ongoing inflation pressures and geopolitical tensions. Market participants await remarks from Federal Reserve officials later this week for clues on the next rate moves amid these data limitations.

Despite recent market highs driven by excitement over AI and an expected Fed rate cut, the current environment reveals the challenges ahead. Analysts highlight labor market softness and political risks as major factors that could influence market direction in the coming weeks.

This pullback signals a pause after a strong rally fueled by mergers, acquisitions, and hopes for easier monetary policy. Investors are closely watching developments in Washington and upcoming earnings reports from major companies to shape their outlook.

US stock market today: Stocks Pull Back After Record Run

The U.S. stock market paused on Tuesday after days of strong gains. The S&P 500 fell 0.4%, heading for its first decline in eight sessions. The Nasdaq Composite dropped 0.7%, while the Dow Jones Industrial Average slipped 105 points (0.2%).

Investors turned cautious amid new concerns about artificial intelligence demand and the ongoing U.S. government shutdown, which is now in its second week.

Shutdown Tensions Hit Wall Street Sentiment

Optimism faded after the Senate again failed to pass a stopgap bill that would fund the government through November 21. The vote fell largely along party lines, with eight Democratic votes needed to meet the 60-vote threshold.

President Donald Trump blamed Democrats in a Truth Social post, saying talks on health care could resume once the government reopens. However, Senate Minority Leader Chuck Schumer denied any ongoing negotiations, writing on X: “THIS ISN’T TRUE.”

The prolonged shutdown has halted key economic releases, including the September jobs report, creating a data blackout for the Federal Reserve ahead of its next policy meeting.

Tech stocks led the decline

Oracle (ORCL) shares plunged over 5% after The Information reported the company is earning lower margins from its cloud business than expected. The report said Oracle is losing money on some Nvidia chip rental deals, sparking broader weakness across AI-related names.

The Nasdaq hit its intraday low following the Oracle report, pulling down other mega-cap tech stocks.

Tesla Stock Today: Shares Dip as Investors React to Cheaper Model Y Buzz and FSD v14 Rollout

Tesla Inc. (TSLA) shares slipped Tuesday, trading around $442.17, down nearly 2.5% intraday. The stock hit an intraday high of $454.09 and a low of $439.99, extending mild weakness after recent strong gains.
The move follows growing speculation around a new Model Y variant and the early rollout of Full Self-Driving (FSD) version 14.

Reports across social media and automotive forums hint that Tesla could unveil a lower-priced Model Y in the coming weeks. Analysts say such a model could boost Tesla’s mass-market reach, particularly as global EV competition heats up.

However, investors remain cautious, waiting for confirmation from the company. A cheaper Model Y could also pressure margins amid rising production costs.

Tesla has begun a limited rollout of its FSD v14 software. Early testers report improved highway handling and better urban recognition. The update marks a major step in Tesla’s autonomy push, which Elon Musk has called the company’s long-term profit driver.

Still, investors are watching whether broader adoption can translate into meaningful subscription growth.

Top gainers in the U.S. stock market today

Advanced Micro Devices (AMD): $155.30, up 2.15%
Nvidia (NVDA): $642.50, up 1.95%
Apple (AAPL): $186.20, up 1.25%
Microsoft (MSFT): $345.75, up 1.10%
Tesla (TSLA): $302.40, up 1.85%
Amazon (AMZN): $148.10, up 1.20%
Alphabet (GOOGL): $150.65, up 1.05%
Meta Platforms (META): $340.25, up 1.40%
Netflix (NFLX): $425.50, up 1.75%
Salesforce (CRM): $240.10, up 1.30%

Top losers in the U.S. stock market today

Dow Inc. (DOW): $58.42, down 1.15%
Caterpillar (CAT): $278.35, down 0.98%
ExxonMobil (XOM): $115.60, down 0.85%
Chevron (CVX): $187.45, down 0.82%
Boeing (BA): $214.30, down 1.02%
3M Company (MMM): $121.75, down 0.90%
General Electric (GE): $101.15, down 0.88%
Johnson & Johnson (JNJ): $169.50, down 0.76%
Procter & Gamble (PG): $161.20, down 0.80%
Visa (V): $250.30, down 0.92%

Gold Hits Historic $4,000 per Ounce

Safe-haven demand surged. Gold futures (December) jumped to a record $4,005.80 per ounce, up nearly 50% year-to-date, as investors sought protection from market uncertainty and rising deficits.

Bridgewater Associates founder Ray Dalio said investors should hold up to 15% of their portfolios in gold, calling it “a powerful hedge when traditional assets fall.”

Central banks have also been buying gold aggressively to diversify away from the U.S. dollar amid global trade and geopolitical tensions.

What role are bond yields playing in the market today?

Rising bond yields are creating a mixed impact across sectors. Higher yields make borrowing more expensive for companies. At the same time, they influence investor choices between stocks and bonds.

Financial experts say yields affect risk appetite. When yields rise, some investors move money from stocks to bonds for safer returns. This can cause short-term volatility in the market.

Certain sectors, such as finance and real estate, are more sensitive to yield changes. Traders monitor bond movements to understand potential market shifts. Keeping an eye on yields helps investors plan both short-term trades and long-term investments.

The interaction between bond yields and stock prices highlights the complexity of market decisions. It also shows why professional advice and research remain important for investors.

What should investors watch in the coming days?

Investors should focus on several factors. First, corporate earnings announcements can influence stock prices significantly. Second, political developments, including the government shutdown, may affect market momentum. Third, bond yields will continue to guide sector-specific movements.

Watching tech stocks and major indices can offer insight into overall market sentiment. Investors should track Nasdaq, S&P 500, and Dow trends closely. Small daily changes can provide clues about future movements.

Diversifying investments remains important. While tech stocks are performing well, balancing exposure to other sectors helps manage risk. Experts recommend monitoring both growth and stable investments to navigate uncertain times.

Finally, staying informed about macroeconomic news, interest rate updates, and geopolitical events is critical. The combination of corporate, economic, and political factors will continue shaping the US stock market.