NextFin news, On Tuesday, September 23, 2025, major U.S. stock indexes retreated from record highs reached in the previous sessions, as shares of Nvidia, a key technology bellwether, fell nearly 3%, dampening market enthusiasm. The Nasdaq Composite, which is heavily weighted with technology stocks, led the declines, closing down about 1%. The S&P 500 and Dow Jones Industrial Average also closed lower by approximately 0.6% and 0.2%, respectively.
The declines came after Federal Reserve Chair Jerome Powell spoke at the Greater Providence Chamber of Commerce in Warwick, Rhode Island, marking his first public comments since the Federal Reserve cut interest rates last week for the first time since December. Powell highlighted the challenges the Fed faces in balancing its dual mandate of maintaining price stability and full employment, noting that "there is no risk-free path" to achieve these goals. He also described stocks as "fairly highly valued," which contributed to investor caution.
Nvidia shares gave back most of their 4% gains from Monday, when the company announced a partnership with OpenAI to build out data centers and revealed plans to invest up to $100 billion in the ChatGPT developer. Despite the pullback, Nvidia remains a significant driver of market sentiment due to its leadership in AI chip technology.
Other technology stocks also faced pressure. Oracle shares dropped more than 4% following a strong gain the previous day after announcing new CEO appointments to bolster its AI initiatives. Meanwhile, Micron Technology, a partner of Nvidia, saw its shares rise 1% after reporting record quarterly sales driven by AI hardware demand.
Energy stocks outperformed, with Halliburton and Baker Hughes among the top gainers, supported by rising crude oil prices. Boeing shares rose 2% after securing a large contract to supply planes to Uzbekistan Airways, a deal valued at over $8 billion, as highlighted by former President Donald Trump.
Gold futures rose 0.6% to a new record high near $3,800 an ounce, while West Texas Intermediate crude oil futures increased 2.3% to $63.70 per barrel. The 10-year U.S. Treasury yield declined slightly to 4.11%, reflecting cautious investor sentiment amid economic uncertainty.
Overall, the market's pullback on Tuesday reflects investor reassessment following a strong rally fueled by expectations of Federal Reserve rate cuts and optimism about AI-related technology investments. The mixed performance underscores ongoing concerns about valuation levels and the economic outlook as the Fed navigates complex policy decisions.
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