Major indexes closed with losses Tuesday, following Federal Reserve Chairman Jerome Powell's comments including that stocks are "highly valued." Meanwhile, the Dow Jones Industrial Average was weighed down by Nvidia and Amazon.com on the stock market today.
Blue chips on the Dow started off in the black but ended the day with a 0.2% loss. Earlier in the session, the 30-stock index hit a new intraday high, but Tuesday's drop ended a four-day win streak. Nvidia ended the session with a 2.8% loss while Amazon was the biggest loser on the Dow with its 3% drop.
The S&P 500 gave back 0.6% after rising for three consecutive sessions, as the tech-heavy Nasdaq composite closed down 1%. Small caps on the Russell 2000 weren't spared and gave up earlier gains to close 0.2% lower. All three major large-cap indexes had finished at record highs on Monday.
Volume was modestly higher on the Nasdaq exchange and the New York Stock Exchange compared with Monday, in preliminary numbers. On the Nasdaq exchange, falling stocks outnumbered rising issues by more than 3-to-2. On the NYSE, winners edged out losers by roughly 8-to-7.
The 10-year Treasury yield dropped to 4.11%. Oil prices increased to around $63.70 a barrel. Bitcoin retreated to around $111,800.
Among exchange traded funds, the Invesco QQQ Trust slid 0.7%. Also, the SPDR S&P 500 ETF sank 0.6% on Tuesday.
3:43 p.m. ET
Stock Market Today: Nvidia Sinks, This Satellite Stock Soars
IBD 50 name Nvidia fell nearly 3%, giving back a significant portion of Monday's 3.9% gain. The stock fell back below its early entry at 180.28.
On Monday, Nvidia jumped after announcing it planned to invest up to $100 billion in ChatGPT creator OpenAI. Nvidia stock was one of the biggest losers on the Dow Tuesday.
But another IBD 50 name, Rocket Lab, bolted nearly 6% higher and topped a buy zone from a cup-with-handle base with 50.92 buy point. The buy zone reaches up to 53.47.
On Monday, the rocket company delivered two spacecraft to Kennedy Space Flight Center for a NASA mission to Mars.
Satellite operator AST SpaceMobile soared more than 11%, and was on pace to extend its win streak to five straight sessions.
AST President Scott Wisniewski, spoke at the World Space Business Week conference in Paris on Monday. The company is operating at a loss but its shares have gained around 158% so far this year.
Futures: AI Giant Rises Late After Stocks Fall On Powell Comments
2:15 p.m. ET
Powell Says This About Equities
Fed chief Jerome Powell made his first public speech since last week's quarter-point interest rate cut by the U.S. central bank.
Powell reiterated the Fed's dual mandate for stable prices and low unemployment. "Near-term risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation," he told the Providence Chamber of Commerce 2025 Economic Outlook Luncheon in Warwick, R.I.
"Two-sided risks mean that there is no risk-free path," he said.
He said that households are in good financial shape but that equities are "fairly highly valued."
Stock Market Today: Amazon Breaks Key Level
Dow stock Amazon.com fell 2.5% on news it will close all of its Amazon Fresh grocery stores in the U.K. Amazon opened its first U.K. store four years ago.
The stock fell below its 50-day moving average on the stock market today. Amazon stock had given up gains after breaking out of a flat base with a 236.53 buy point in early September. Shares neared the 7% sell rule from the entry point. Its relative strength line has been on a steep decline since early September.
SoundHound AI trimmed gains to 2.5% after saying it will team up with Red Lobster on an artificial intelligence-powered phone ordering system. SoundHound stock is on track for seven straight days of gains but remains down nearly 7% on the year.
Shares are in the buy zone of a handle entry at 17.08.
12:30 p.m. ET
This Medical Supply Name Hits A High
Drug distribution behemoth McKesson popped nearly 7% and broke out of a flat base with a 737.87 buy point. Shares are now in a buy zone up to 774.78.
The rally came after the company announced it raised its fiscal 2026 adjusted earnings outlook at its investor day. It now sees earnings in a range of $38.05 per share to $38.55 per share.
Shares reached a record high on the stock market today.
IBD 50 stock Astera Labs slid nearly 4% and is on pace for three straight days of losses after hitting a record high on Sept. 18. The stock is pulling back toward its 21-day exponential moving average.
The stock has gained around 69% this year, even with its recent retreat. Astera makes hardware and software used by the chip industry.
Also, Vistra skidded 4.5% after Jefferies downgraded the power stock to a hold rating from buy and cut its price target to 230 from 241. The stock made two recent breakout attempts from an early-stage cup base with a 216.85 buy point, but that faded.
10:45 a.m. ET
Economic News
The September Purchasing Managers' Index Composite Index came in at 53.6, which fell from the 54.6 reading in August. The Manufacturing Index tallied 52 as expected and lagged August's 53 reading.
Lastly, the Services Index 53.9 reading topped the 53.5 projection but was lower than the 54.5 reading in August.
Rocket Stock Crashes
Firefly Aerospace tumbled nearly 11% after the aerospace company reported its first quarterly financial results since going public on Aug. 7. Its fiscal second-quarter loss grew to $5.78 per share from $4.60 per share a year ago. And its revenue dropped to $15.5 million from $21.1 million in the second quarter of 2024.
Tuesday's drop erased Monday's 9.5% gain, which was prompted by news that NASA awarded it a $10 million contact addendum for additional data collected on its Blue Ghost Mission 1. Blue Ghost is the first commercial mission to successfully land on the Moon. Firefly Aerospace develops and builds launch vehicles, rockets and satellites and provides launch services.
IBD 50 name Micron Technology climbed 2.5% ahead of the company's fiscal fourth-quarter earnings report due after the market close. Analysts expect its profit to jump 143% to $2.86 per share with sales of $11.2 billion, or a 45% jump.
The chip stock hit an all-time high on Sept. 18, and is extended from the profit zone and the 128.60 buy point of a cup-with-handle base.
Palantir Technologies jumped 1.6% after BofA Securities raised its price target to 215 from 180 and held its buy rating on the IBD 50 stock. Shares are in a late-stage consolidation pattern with a 190 buy point.
9:45 a.m. ET
Nasdaq 100 Winners And Losers: Palantir, Tesla, Regeneron
Among Nasdaq 100 stocks, Palantir rallied more than 2%, making it one of the best performers in morning action. Meanwhile, Tesla pared a 1% gain down to 0.4% in recent action.
Also, Regeneron Pharmaceuticals sold off more than 3% in early trading.
8:53 a.m. ET
Dow Jones Movers: Apple, Boeing
Boeing was the clear leader on the blue chip index, rallying more than 2% after President Donald Trump said the company signed an order from Uzbekistan for planes worth more than $8 billion. Boeing stock is building a flat base with a 242.69 buy point.
On the downside, Apple dropped 0.4%, easing after Monday's 4.3% jump.
8:16 a.m. ET
Stock Market Today: Nvidia Stock Hits Buy Point
Nvidia shares declined nearly 1% Tuesday premarket, threatening to give back a part of Monday's near-4% advance after the AI chip leader announced plans to invest up to $100 billion in ChatGPT creator OpenAI.
Shares topped an early entry at 180.28 Monday but also closed just shy of their flat-base entry at 184.48, per IBD MarketSurge.
AutoZone Falls On Earnings
AutoZone stock fell more than 3% in premarket trading after the company missed fiscal fourth-quarter earnings and sales targets. Shares also are pulling back to their 50-day moving average.
The automotive parts retailer reported adjusted quarterly earnings of $48.71 a share on sales of $6.24 billion. Further, same-store sales jumped 5.1% year over year.
Stock Market Today: Powell Speech
Fed chief Powell is anticipated to offer comments on the economic outlook when he speaks at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon in Warwick, R.I. That speech is scheduled for 12:35 p.m. ET.
Later in the week, the Fed's favored gauge of inflation, the core PCE price index, is due out Friday.
Ahead of that speech, the Composite Purchasing Managers' Index, or PMI, is set for release at 9:45 a.m. ET. The PMI provides an early estimate of current private sector output. Economists see manufacturing growth slowing to 52.0 in September vs. 53.0 in August. They also see a slightly slower services index, at 53.5 vs. 54.5 in August.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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