AI-Summary – News For Tomorrow
On Tuesday, the Dow, S&P 500, and Nasdaq all declined after hitting record highs the previous day. Big Tech and AI stocks, which led Monday’s gains, experienced significant weakness. The 2-year and 10-year Treasury yields also fell. Market activity was slow, attributed to the Ryder Cup, holidays, and lack of catalysts. President Trump canceled a meeting with Democratic lawmakers amid government shutdown concerns. Federal Reserve Chairman Jerome Powell reiterated his previous statements, noting that “equity prices are fairly highly valued,” although he didn’t perceive high financial stability risks.
News summary provided by Gemini AI.
The Dow Jones Industrial Average fell 89 points, or 0.2%. The S&P 500 was down about 0.6%. The Nasdaq Composite dropped nearly 1%. All three marked record closing highs on Monday.
The yield on the 2-year Treasury note dropped to 3.59%, while the 10-year yield was down to 4.12%.
The market’s biggest strength on Monday—Big Tech and AI—was a major point of weakness on Tuesday.
“Markets have been grinding lower for most of the day but started to accelerate around 1 p.m.,” wrote Mizuho’s Daniel O’Regan. “Between the Ryder Cup, holidays and lack of catalysts, it’s a very slow Tuesday.”
President Donald Trump spoke at the United Nations. He also called off a meeting with Democratic lawmakers ahead of a Sept. 30 deadline to avert a government shutdown.
“I have decided that no meeting with their congressional Leaders could possibly be productive,” he wrote on Truth Social.
Federal Reserve Chairman Jerome Powell also spoke on Tuesday. Powell reiterated much of what he said during last week’s press conference, but a remark that “equity prices are fairly highly valued” may have caught some traders’ attention. Still, Powell noted it was not “a time of elevated financial stability risks.”
