FX.co ★ S&P 500, Nasdaq Pull Back from Record Highs

On Thursday, U.S. stocks experienced a downturn as investors took a breather to assess the burgeoning optimism surrounding artificial intelligence advancements, potential interest-rate reductions, and the continuing government shutdown. The S&P 500 declined by 0.3%, the Nasdaq 100 slipped 0.1%, both moving away from the record highs achieved in the previous session, and the Dow Jones dropped 243 points. The market sentiment was dampened by the shutdown, causing delays in critical economic data and redirecting attention toward the forthcoming third-quarter earnings for insights into the economy and the AI-fueled rally. Among notable movements, Apple, Alphabet, Tesla, and Walmart each fell by over 0.7%, contrasting with PepsiCo, which climbed 4.2% following better-than-expected revenue and earnings reports. Delta Air Lines rose by 4.3% after optimistic forecasts, Nvidia increased by 1.8% as the U.S. sanctioned significant chip exports to the UAE, and Costco advanced 3.1% on robust September sales figures. Investors are also closely monitoring the Federal Reserve, with the market anticipating a strong probability of 25-basis-point rate cuts in both October and December, driven by concerns over the labor market.