US stocks snap a 7-day winning streak as gold’s price tops $4,000 per
ounce
[October 08, 2025] By
STAN CHOE
NEW YORK (AP) — Wall Street’s record-breaking rally ran out of momentum
on Tuesday after the price of gold topped $4,000 per ounce for the first
time.
The S&P 500 dipped 0.4% from its latest all-time high and broke a
seven-day winning streak. The Dow Jones Industrial Average fell 91
points, or 0.2%, and the Nasdaq composite sank 0.7%.
Stocks took a pause following a nearly relentless rush higher since
April on hopes that the economy will remain resilient and that the
Federal Reserve will continue to cut interest rates.
Tesla was the heaviest weight on the market and dropped 4.4% after
unveiling cheaper versions of two of its electric car models. The stock
gave back most of its leap from the prior day, when speculation and hype
built after Tesla hinted at a coming product announcement.
Oracle also helped drag the market lower. It fell 2.5% after a news
report suggested it’s making thin profit margins on a key line of
business related to artificial-intelligence technology.
The frenzy around AI has been one of the biggest trends guiding Wall
Street to record after record recently. It’s been so strong that it’s
raised worries that prices have potentially shot too high across the
market.
On Tuesday, Dell climbed 3.5% after executives talked up the company’s
opportunity for growth because of AI at an investment conference.
Advanced Micro Devices rallied 3.8% to add to its surge from Monday,
when it announced a deal where OpenAI will use its chips to power AI
infrastructure. IBM rose 1.5% after announcing a partnership that will
integrate Anthropic’s Claude AI chatbot into some of its software
products.
Much is riding on expectations that the AI investment boom will pay off
by making the global economy more productive and driving more growth.
Without that increased efficiency, inflation could push higher due to
upward pressure coming from the mountains of debt that the U.S. and
other governments worldwide are building.
That has optimists on Wall Street buying tech stocks and pessimists
buying gold, according to Thierry Wizman, a strategist at Macquarie
Group.
Investors have traditionally seen gold as offering protection from high
inflation. Its price has soared more than 50% this year not only because
of governments’ huge debt loads but also because of political
instability worldwide and expectations for lower interest rates from the
Fed.
Investors looking to “hedge” themselves, meanwhile, may be buying both
tech stocks and gold, Wizman wrote in a research report.
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James Bodner, center, and others work on the floor at the New York
Stock Exchange in New York, Wednesday, Oct. 1, 2025. (AP Photo/Seth
Wenig)
 Elsewhere on Wall Street,
Intercontinental Exchange rose 1.8% after the company behind the New
York Stock Exchange said it had agreed to invest up to $2 billion in
Polymarket.
Polymarket offers prediction markets that allow customers to profit
from making predictions on events across politics, financial markets
and popular culture, such as who will become New York City’s next
mayor or whether the U.S. government will announce this year that
aliens exist.
Constellation Brands added 1% after the beer and wine company
reported results for the latest quarter that several analysts said
were better than they expected. Sales of beer still dropped from a
year earlier, though, as CEO Bill Newlands highlighted a
“challenging socioeconomic environment that has dampened consumer
demand.”
All told, the S&P 500 fell 25.69 points to 6,714.59. The Dow Jones
Industrial Average dropped 91.99 to 46,602.98, and the Nasdaq
composite sank 153.30 to 22,788.36.
In Toronto, shares of Trilogy Metals more than tripled after the
White House said late Monday that it’s taking a 10% equity stake in
the Canadian company while allowing the Ambler Road mining project
in Alaska to go forward.
President Donald Trump late Monday ordered the approval of a
proposed 211-mile road through an Alaska wilderness to allow mining
of copper, cobalt, gold and other minerals used in production of
cars, electronics and other technologies. Trilogy is seeking to
develop the Ambler site along with an Australian partner.
In Europe, France’s CAC 40 edged up by less than 0.1% a day after
slumping due to the latest political upheaval in Paris. France’s
prime minister abruptly resigned on Monday.
In the bond market, the yield on the 10-year Treasury eased to 4.13%
from 4.18% late Monday.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
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