Risk sentiment is taking a breather after days of a relentless rally, with all major Wall Street indexes trading in negative territory and sharper declines hitting the most speculative assets, such as cryptocurrencies.
Investors are showing early signs of profit-taking after the Nasdaq 100 and S&P 500 surged roughly 50% and 40%, respectively, from their lows in April.
The blackout in economic data due to the U.S. government shutdown hasn't dented expectations that the Federal Reserve will continue to cut interest rates. Markets continue to price in a 95% chance of a 25-basis-point rate cut at the October 30 meeting.
Volatility is also on the rise, with the VIX up approximately 5%, while only defensive sectors--namely, consumer staples, utilities and healthcare--are avoiding losses.
Small caps are underperforming large caps, with the Russell 2000 down 1.1% in what could be its worst session since mid-August.
Advanced Micro Devices Inc. (NASDAQ:AMD)'s rally continues, rising another 4% after Monday's explosive 23.7% surge following its deal with OpenAI, as both Bank of America and Goldman Sachs raised their 12-month price targets to $250 and $210, respectively.
Ford Motor Co. (NYSE:F) stands out among the laggards, plunging 6.5% in its worst day since February after a fire at Novelis, a key aluminum supplier, which is expected to disrupt production until early 2026. General Motors Co. (NYSE:GM) also slipped 2.2%.
Gold futures smashed through the $4,000 mark in another historic session for the yellow metal, which has been setting record highs almost daily. It marks gold's eleventh gain in the past thirteen sessions. Silver, however, fell nearly 2%, dropping below $48 per ounce.
The crypto rally also took a pause. Bitcoin (CRYPTO: BTC) slid to $121,500, down 2.5%, snapping a six-day winning streak. Ethereum (CRYPTO: ETH) lost 4% to $4,500, Solana (CRYPTO: SOL) fell 4.2% to $223, and Strategy Inc. (NASDAQ:MSTR) tumbled 7%.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % chg |
| • Dow Jones | 46,587.54 | -0.2% |
| • S&P 500 | 6,718.92 | -0.3% |
| • Nasdaq 100 | 24,851.29 | -0.5% |
| • Russell 2000 | 2,458.67 | -1.0% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.4% to $614.90.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) slipped 0.2% to $465.74.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) eased 0.5% to $604.64.
- The iShares Russell 2000 ETF (NYSE:IWM) dropped 1% $244.26.
- The Utilities Select Sector SPDR Fund (NYSE:XLU) outperformed, up 0.9%; the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) lagged, down 1.1%.
S&P 500’s Top 5 Gainers On Tuesday
| Name | % Change |
|---|---|
| AppLovin Corporation (NASDAQ:APP) | +7.26% |
| The Estée Lauder Companies Inc. (NYSE:EL) | +4.24% |
| PayPal Holdings, Inc. (NASDAQ:PYPL) | +3.46% |
| Advanced Micro Devices, Inc. | +3.34% |
| Kenvue Inc. (NYSE:KVUE) | +2.84% |
S&P 500’s Top 5 Losers On Tuesday
| Name (Exchange: Ticker) | % Change |
|---|---|
| Seagate Technology Holdings plc (NASDAQ:STX) | -7.20% |
| Ford Motor Company | -6.26% |
| D.R. Horton, Inc. (NYSE:DHI) | -5.36% |
| Western Digital Corporation (NASDAQ:WDC) | -4.87% |
| Teradyne, Inc. (NASDAQ:TER) | -4.35% |
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Photo: Shutterstock
