On Tuesday, U.S. stocks experienced a slight dip after their recent record highs, as investors on Wall Street grappled with apprehensions regarding the government shutdown alongside optimism surrounding advancements in artificial intelligence.
The Dow Jones Industrial Average (^DJI) saw a decrease of 0.2%. Meanwhile, the S&P 500 (^GSPC) dropped approximately 0.4%, and the Nasdaq Composite (^IXIC) fell around 0.7% after new record high closes the previous day.
Gold (GC=F) prices surged past $4,000 per ounce for the first time as investors sought out safe havens amid market uncertainty.
This decline in stocks followed the S&P and Nasdaq’s seventh consecutive victories on Monday, spurred by reports concerning a multibillion-dollar collaboration involving AMD (AMD) and OpenAI (OPAI.PVT), propelling the chip company’s stock sharply upwards.
However, tech shares took a hit on Tuesday, predominantly due to a fall in Oracle’s (ORCL) share price following a report revealing concerns about profitability in its cloud computing division compared to analyst expectations. Ultimately, Oracle’s shares tumbled as much as 7% during the day before closing down by 2%.
Similarly, Tesla’s (TSLA) stock declined by 4%, following the company’s reveal of a lower-cost Model Y priced at under $40,000, a launch that had been teased through a series of enigmatic social media hints.
Amidst the ongoing government shutdown, earnings announcements are set to gain heightened importance. If the federal impasse persists, it could obscure critical economic indicators for market participants as key data outputs become limited, complicating predictions regarding interest rate trajectories.
This shutdown already postponed the September jobs report initially scheduled for Friday. Additionally, next week’s anticipated inflation reports for consumers and producers, vital for Federal Reserve policy, may also be delayed.
Meanwhile, political stalemate over a funding resolution persists. President Trump made it clear he would negotiate with Democrats regarding the healthcare subsidies they seek post-reopening of the government, also intensifying his rhetoric against federal workers.
LIVE COVERAGE HAS CONCLUDED 23 updates
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Tue, October 7, 2025 at 8:01 PM UTC
Stocks pull back from record levels as Oracle shares decline
Markets pulled back from their record levels on Tuesday, particularly as Oracle (ORCL) share prices suffered after a report revealed the company’s cloud computing margins may fall short of analysts’ expectations.
The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) each fell by less than 1% after these indices reached new records in the previous session.
The downturn in stocks coincided with a report by the Information indicating that internal documents suggested Oracle’s gross margin dropped to 67.3%, its lowest level in over a year.
As a consequence, Oracle stock fell by up to 7% during the trading day before stabilizing at a closing price 2% lower.
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Tue, October 7, 2025 at 7:15 PM UTC
Gold’s surge may face a pause or correction, according to strategist
Strategists suggest gold may be due for a consolidation period following substantial gains exceeding 50% year-to-date.
The price of gold surpassed the $4,000 mark on Tuesday following an impressive seven-week rally.
Adam Turnquist, chief technical strategist at LPL Financial, mentioned, “A breakout beyond this point could indicate a bullish continuation in the upward trend, but if we fail here, a retracement may be expected.”
He noted that the recent surge was significantly influenced by increasing uncertainty regarding the government shutdown and heightened demand for physical gold, particularly in ETFs, which achieved record inflows in the previous quarter.
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Tue, October 7, 2025 at 6:57 PM UTC
Tesla launches more affordable Model Y priced under $40,000
Tesla (TSLA) has introduced a standard version of its popular Model Y SUV priced below $40,000.
The base model, available in Stealth Grey, is priced at $39,990, while other colors, such as White Pearl and Diamond Black, begin just over $40,000.
In addition, the standard Model 3 is listed at nearly $37,000.
After a recent jump of 5% on Monday due to hype from its social media activities over the weekend, Tesla stock saw a decline on Tuesday.
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Tue, October 7, 2025 at 6:00 PM UTC
UBS maintains bull market outlook despite AI bubble concerns
UBS strategists contend that the ongoing surge in AI-related deals is driving favorable market conditions.
Notably, OpenAI’s partnerships with companies such as AMD, Nvidia, Oracle, and Broadcom have propelled the S&P 500 (^GSPC) to achieve seven straight days of gains, marking its longest winning streak since May.
“With hundreds of billions of investments committed, the bull market is nearing its three-year anniversary, all while concerns of a potential AI bubble comparable to the dot-com era loom large. However, warnings about a bubble have persisted nearly as long as the AI boom itself,” stated UBS chief investment officer Americas, Ulrike Hoffmann-Burchardi.
“Although some degree of consolidation is likely after such a vigorous rally, we believe robust fundamentals will continue to fuel the equity rally.”
The pullback on Tuesday for tech stocks followed a report indicating Oracle’s (ORCL) cloud computing margins might be lower than previously estimated, influencing overall market performance.
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Tue, October 7, 2025 at 5:35 PM UTC
Oracle shares decline following reports of lower than expected margins
Oracle (ORCL) shares dropped on Tuesday, dragging the broader market down after internal documents suggested the company’s cloud margins might underperform Wall Street expectations.
The report from the Information revealed that Oracle faced approximately $900 million in earnings from renting Nvidia-based servers, yielding only $125 million in gross profit. The company’s gross margin plummeted to 67.3%, marking its lowest in well over a year amidst substantial investments in chips and data centers.
During Tuesday’s trading session, Oracle shares experienced a drop of 3%. Despite this downturn, shares had surged over 60% earlier this year, buoyed by the rising demand for AI technologies and a critical agreement with OpenAI (OPAI.PVT) to secure 4.5 gigawatts of data center capacity.
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Tue, October 7, 2025 at 5:15 PM UTC
Income growth expectations plummet to lowest levels since 2021 amidst a sluggish job market
Reports from Yahoo Finance’s Emma Ockerman indicate: Income growth expectations are at their lowest since 2021.
For the full article, read more here.
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Tue, October 7, 2025 at 4:30 PM UTC
Small-cap stocks begin to see earnings recovery following the strongest quarter since 2021
As reported by Yahoo Finance’s Jake Conley:
For further details, read more here.
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Tue, October 7, 2025 at 3:45 PM UTC
CEOs warn Trump: Tariffs will severely impact our business and lead to price increases
Reporting by Yahoo Finance’s Francisco Velasquez highlights ongoing corporate concerns:
For further insights, read more here.
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Tue, October 7, 2025 at 3:15 PM UTC
Trilogy Metals surge prompts discussion of Trump administration’s 10% stake
News from Yahoo Finance’s Jake Conley suggests that:
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Tue, October 7, 2025 at 2:45 PM UTC
A healthcare compromise proposed to resolve the government shutdown: When will this happen?
Insights from Yahoo Finance’s Ben Werschkul:
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Tue, October 7, 2025 at 1:52 PM UTC
Gold skyrockets above $4,000 as ETFs record historic inflows
Gold futures (GC=F) soared past $4,000 on Tuesday as investors flocked to the metal amidst a declining dollar and increasing expectations for further rate cuts from the Federal Reserve.
Additionally, global gold-backed ETFs recorded their largest quarterly influx ever, as reported by the World Gold Council.
Further reporting by Yahoo Finance’s Ines Ferré indicates:
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Tue, October 7, 2025 at 1:32 PM UTC
Markets rise at the opening bell
At market open, stocks ticked up as investors balanced the implications of the ongoing government shutdown with the influence of increasing AI investments.
The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) each recorded an increase of approximately 0.1%, following a series of record highs achieved on Monday.
Stocks from Trilogy Metals (TMQ), International Business Machines (IBM), and Figma (FIG) were among the top trending tickers at the open.
Meanwhile, bond yields held steady, with the 10-year Treasury yield (^TNX) remaining around 4.15%, and the 30-year yield (^TYX) dipping slightly to 4.74%.
Gold futures (GC=F) continued to ascend, reaching a high of $4,006.50 per troy ounce shortly after the opening.
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Tue, October 7, 2025 at 1:20 PM UTC
Qualcomm to acquire Arduino in edge computing expansion
Qualcomm (QCOM) shares saw a rise in premarket trading following the announcement of their acquisition of Arduino, an open-source hardware and software firm, aimed at expanding their ecosystems in edge computing.
Yahoo Finance’s Daniel Howley reports:
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Tue, October 7, 2025 at 1:09 PM UTC
Crypto ETFs bring in record $5.95 billion in a week
According to reports, global cryptocurrency exchange-traded funds (ETFs) experienced a surge, attracting record inflows of $5.95 billion for the week ending October 4, coinciding with a significant rise in bitcoin’s value.
Data from CoinShares revealed that U.S. crypto ETFs led with $5 billion in new investments, while Switzerland and Germany followed with $563 million and $312 million, respectively.
Bitcoin (BTC-USD) attracted $3.55 billion in inflows, while ether (ETH-USD) brought in $1.48 billion. Solana (SOL-USD) recorded $706.5 million, and XRP (XRP-USD) attracted $219.4 million.
Further insights can be found in the article read more here from Reuters.
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Tue, October 7, 2025 at 12:35 PM UTC
AMD CEO asserts AI skeptics are ‘restricting their vision’ following OpenAI announcement
A significant focus was placed on comments made by AMD’s CEO, stating that critics of AI are “thinking too small” in light of the company’s recent agreement with OpenAI.
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Tue, October 7, 2025 at 12:08 PM UTC
Constellation Brands stock reacts as demand weakens
Shares of Constellation Brands (STZ) have been under pressure, currently down 37% Year-to-Date, amid challenges stemming from a difficult economic environment leading to reduced consumer desire.
In their recent earnings announcement, CEO Bill Newlands noted specific influences including challenging job trends and lowered consumer sentiment within the Hispanic community, which have been detracting from social gatherings.
During the second quarter of fiscal 2026, the company reported earnings of $2.65 per share, improving from a previous loss of $6.59 per share last year. However, net sales fell 7% and earnings fell short of Wall Street’s expectations by $3.32 per share, despite revenue of $2.48 billion exceeding the expectations of $2.45 billion.
Constellation Brands revised its profit outlook, lowering it to a range of $9.86-$10.16 per share, down from the previous forecast of $10.77-$11.07, anticipating a net sales decline of 4% to 6% in the upcoming year.
Following the earnings release, the stock gained 3% in premarket trading.
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Tue, October 7, 2025 at 11:30 AM UTC
The implications of OpenAI’s deal-making activity
OpenAI (OPAI.PVT) has been engaging in a series of lucrative partnerships, with the latest involving AMD, as noted by Yahoo Finance’s Hamza Shaban.
This burst in collaborations illustrates the critical stakes for OpenAI as it commits firmly to the pursuit of superintelligence.
For further insights, read more here..
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Tue, October 7, 2025 at 10:40 AM UTC
Good morning! Here’s what to expect today.
Note: Some U.S. economic data releases are being delayed due to the federal government shutdown.
Economic data scheduled for release: Exports (August); Imports (August); Federal Reserve Bank of New York one-year inflation expectations (September); Consumer credit (August)
Earnings schedule includes: McCormick & Company (MKC)
Here are some major stories you might have missed overnight:
Trilogy Metals stock spikes on U.S. investment initiative
AMD’s chief remarks on AI skepticism
Tesla’s launch of a more affordable Model Y
Impact of OpenAI mentions on stocks
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Tue, October 7, 2025 at 10:16 AM UTC
Novo Nordisk implements job cuts at its major U.S. facility
Novo Nordisk (NVO) has enacted layoffs affecting several employees at its primary manufacturing location in the United States. In a significant restructuring move after CEO Mike Doustdar took over, the company has made these reductions.
Report by Reuters provides additional details:
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Tue, October 7, 2025 at 9:58 AM UTC
Trending stocks in premarket trading include AMD, Clarivate, and Ford
Here’s a snapshot of some of the top stocks gaining traction before the opening:
AMD (AMD) surged 4% ahead of opening bell following the announcement of a significant partnership with OpenAI (OPAI.PVT).
Clarivate Plc (CLVT) rose by 8% prior to bell after announcing that Winbond Electronics Corporation has adopted their cloud-based IP management system.
Ford (F) shares dropped 1% on the premarket following a fire incident at a key aluminum plant, raising concerns of potential supply chain disruptions that may affect Ford and other automotive manufacturers for an extended period.
