Wall Street Pulls Back — Is the Rally Losing Steam?

Wall Street Takes a Breather After Record-Breaking Run

U.S. markets cooled off Thursday as both stocks and gold slipped from record highs, signaling a brief pause after weeks of powerful gains.

The S&P 500 fell 0.3%, marking only its second loss in 10 days. The Dow Jones Industrial Average dropped 243 points (0.5%), while the Nasdaq edged down 0.1%.

After a stellar rally, gold also retreated — down 2.4% to below $4,000 per ounce — as traders caught their breath following a surge fueled by expectations that the Federal Reserve may soon begin cutting rates to support the economy.

Markets have been on a relentless climb — with the S&P 500 up 35% since April — raising concerns that prices might have run too far, too fast, particularly among AI-related stocks that have dominated recent gains.

Dell Technologies dropped 5.2%, the day’s biggest S&P 500 loser, though it remains up nearly 11% for the week after highlighting strong AI growth prospects. Tesla slipped 0.7% after U.S. regulators opened a probe into its “Full Self-Driving” software.

Helping offset those losses, Delta Air Lines jumped 4.3% after reporting better-than-expected summer profits and projecting stronger year-end earnings, citing a steady recovery in business travel and solid demand.

With the U.S. government shutdown halting key economic updates — including the weekly jobless claims report — investors are turning to corporate earnings to gauge the economy’s pulse.

PepsiCo rose 4.2% after beating quarterly expectations and posting stronger North American drink sales. Akero Therapeutics surged 16.3% after Novo Nordisk announced plans to buy the biotech firm for up to $5.2 billion. MP Materials gained 2.4% after China imposed new export restrictions on rare earths, and Costco climbed 3.1% on an 8% year-over-year revenue jump in September.

At the close:

• S&P 500: 6,735.11 (–0.3%)
• Dow Jones: 46,358.42 (–0.5%)
• Nasdaq: 23,024.63 (–0.1%)

Overseas, performance was mixed. Ferrari slid 15.4% in Italy after disappointing forecasts, while Shanghai stocks rose 1.3% after reopening from a holiday. Japan’s Nikkei 225 advanced 1.8%, driven by an 11.4% jump in SoftBank Group following its $5.4 billion deal to acquire ABB’s robotics division.

In bonds, the 10-year Treasury yield inched higher to 4.14% from 4.13%.