The S&P 500 fell 0.4% on Tuesday after 8 days of gains. The Nasdaq dropped 0.7%, and the Dow Jones lost 105 points, or 0.2%. Oracle shares dropped over 5%, leading tech stocks lower. Investors are worried about weaker-than-expected margins in Oracle’s cloud business and losses on some Nvidia chip deals.

Anthony Saglimbene, chief market strategist at Ameriprise, said to CNBC, “There’s a lot of interest in capex spending and making sure that you’re first or you have the ability to source the technology you need to grow profits in this new AI realm.” He added, “It doesn’t mean that AI is in a bubble. It just means that there’s probably some opportunity for a little bit of reset in expectations.”

Government shutdown hits investor confidence

Investors are also concerned about the U.S. government shutdown, which entered its second week on Tuesday. The Senate failed for the fifth time to pass a House bill funding the government through Nov. 21. The vote was mostly along party lines, needing at least 8 Democrats to join Republicans.

President Donald Trump blamed Democrats for the shutdown in a Truth Social post, “I’m happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open” as stated in the report by CNBC.

Gold Rises as safe-haven investment

Trump earlier said in the Oval Office, “We have a negotiation going on right now with the Democrats that could lead to very good things… with regard to healthcare.” Senate Minority Leader Chuck Schumer denied progress on X, “THIS ISN’T TRUE… If Republicans are finally ready to sit down and get something done on health care for American families, Democrats will be there—ready to make it happen.”

The shutdown is pushing investors into safe-haven assets like gold, which hit $4,000 per ounce for the first time. Saglimbene said, “As we move closer to the end of the week and furloughed workers don’t get a check… you could see more pressure on Congress to get to some kind of agreement.”

Economic data gaps and market warnings

The shutdown delayed key economic data, including the September jobs report, limiting Federal Reserve insights ahead of its next interest rate decision. Goldman Sachs vice chairman Robert Kaplan said gold’s rise is a warning, “Gold being up almost 40% year to date, that should be getting our attention… That’s a red light that we ought to be paying attention to.”

Kaplan added that investors are avoiding 10-year U.S. Treasuries despite stress in the government, due to concerns over a very large federal deficit, as stated by a CNBC report.

JPMorgan downgrades consumer finance stocks

JPMorgan downgraded OneMain, Synchrony Financial, SLM, and Essent to neutral due to weakening macroeconomic conditions. Analyst Richard Shane said, “The latest macro data show a slowing labor market… loss rates remain relatively elevated given the benign labor environment.” He also noted a “K-shaped economy,” where high-income and low-income consumers face different pressures.

Ray Dalio, founder of Bridgewater Associates, recommended investors hold 15% of their portfolio in gold, “Gold is a very excellent diversifier in the portfolio… because it is one asset that does very well when the typical parts of the portfolio go down.”

Stocks and futures movement

Trilogy Metals shares surged more than 200% after the White House announced a $35.6 million investment, making it a 10% shareholder. The goal is to unlock domestic supplies of copper and critical minerals in Alaska.

Stocks opened slightly higher on Tuesday, S&P 500 and Nasdaq rose 0.2%, Dow Jones up 0.3%. Other stock movements before the bell, Aehr Test Systems fell 20% after revenue dropped year-over-year and no guidance was given. Dollar Tree shares fell 4% after Jefferies downgraded the stock.

Carlyle’s analysis showed September job growth was very low at 17,000, lower than August’s 22,000, reflecting data gaps due to the government shutdown. Constellation Brands shares rose over 3% premarket after earnings beat estimates, with revenue of $2.48 billion and adjusted earnings of $3.63 per share.

Aehr Test Systems fell nearly 18% after hours due to ongoing uncertainty from tariffs and modest earnings. Janney Montgomery Scott’s Dan Wantrobski said the market could enter a “crack-up boom” in 2025, pushing multiple areas to new highs in a liquidity-driven rally.

U.S. stock futures opened mostly flat Monday evening, S&P 500 and Nasdaq-100 futures up less than 0.1%, Dow futures added 8 points.

FAQs

Q1. Why did the S&P 500 fall after 8 days of gains?

The S&P 500 fell due to weak Oracle shares, worries about AI profits, and uncertainty from the U.S. government shutdown.

Q2. Why did gold prices reach $4,000 per ounce?

Gold hit $4,000 as investors moved to safe-haven assets amid the government shutdown and economic uncertainty.