Wall Street’s recent hot streak slowed on October 9, 2025, with major U.S. stock indexes retreating slightly from all-time highs amid cautious investor sentiment. The S&P 500 dropped 0.3% (18.61 points) to 6,735.11, the Dow Jones Industrial Average fell 0.5% (243 points) to 46,358.42, and the Nasdaq declined 0.1% (18.75 points) to 23,024.63. Gold also slipped 2.4%, dipping below the $4,000 per ounce mark after a strong rally this year.[1][2]
Key Market US stocks Drivers
Markets have surged strongly, particularly with a 35% jump in the S&P 500 since April, fueling concerns about possible overvaluation. Artificial intelligence (AI)-related stocks, a major driver of this growth, faced turbulence amid profit-taking and valuation worries.
Dell Technologies experienced the biggest loss in the S&P 500, dropping 5.2% after recently raising its long-term sales and earnings forecast due to soaring AI demand. CEO Michael Dell highlighted an expected annual revenue growth of 7% to 9% and earnings-per-share growth of 15% or more, driven by enterprise interest in AI infrastructure and computing solutions.[3][4][1]
Tesla shares dipped 0.7% after the National Highway Traffic Safety Administration (NHTSA) launched an investigation into safety concerns related to Tesla’s Full Self-Driving (FSD) system. The probe covers nearly 2.9 million vehicles, citing traffic violations and crashes linked to FSD.[5][6]
Corporate Earnings Highlights
Delta Air Lines rose 4.3% following robust Q3 earnings, beating revenue expectations with $16.7 billion and reporting adjusted EPS of $1.71, surpassing forecasts. Strong premium and corporate travel segments, alongside a boosted profit outlook for the rest of 2025, supported the stock.[7][8][9]
PepsiCo’s stock climbed 4.2% after delivering solid Q3 results. The company reported revenue of $23.94 billion, slightly above consensus estimates, and a core EPS of $2.29, beating forecasts despite inflationary and foreign exchange headwinds. PepsiCo emphasized growth in North American beverages and ongoing strategic initiatives.[10][11][12]
Additionally, Akero Therapeutics soared 16.3% after Novo Nordisk announced plans to acquire the biotech firm for up to $5.2 billion pending regulatory approval, bolstering investor sentiment.[1]
MP Materials, a key U.S. rare earths producer, rose 2.4% following China’s imposition of new export restrictions on rare earth elements, critical for high-tech manufacturing. The restrictions amplify global supply concerns and favor domestic producers like MP Materials.[13][14]
Global Market Movements
International markets presented mixed signals:
- Ferrari’s stock plummeted over 15% after its long-term growth forecasts missed analyst expectations. The luxury automaker revised its 2030 electric vehicle target downward to 20% of its lineup, reflecting a more cautious electrification strategy that disappointed investors.[15][16]
- SoftBank Group surged 11.4% after agreeing to acquire ABB’s robotics division for $5.4 billion, marking a significant investment in AI and robotics with the acquisition expected to close in mid-to-late 2026.[17][18]
- China’s Shanghai Composite rose 1.3% following a holiday, while Japan’s Nikkei 225 gained 1.8%, supported by gains in technology stocks.
Economic Context
The uncertainty caused by the ongoing U.S. government shutdown has delayed crucial economic data releases, shifting greater attention to corporate earnings reports as indicators of economic strength. Treasury yields remained steady, with the 10-year note yield edging up slightly to 4.14%.[2][19][1]
