U.S. stock markets closed lower on Tuesday after a choppy session. Market participants booked profits after three consecutive days of record-high closing of major indexes. Moreover, the Fed Chairman’s comment dented investors sentiment. Earnings results were also weak. All three major stock indexes ended in negative territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% to close at 46,292.78. Notably, 15 components of the 30-stock index ended in positive territory, while 15 finished in negative territory. At the intraday high, the blue-chip index recorded a new all-time high of 46,714.27.
The tech-heavy Nasdaq Composite finished at 22,573.47, tumbling 1% or 215.50 points driven by the weak performance of technology bigwigs. The S&P 500 declined 0.6% to finish at 6,656.92. At the intraday high, the benchmark index recorded a new all-time high of 6,699.52.
Out of the 11 broad sectors of the broad-market index, five ended in negative territory, while six were in positive territory. The Energy Select Sector SPDR (XLE) advanced 1.7%. On the other hand, the Consumer Discretionary Select Sector SPDR (XLY) and the Technology Select Sector SPDR (XLK) fell 0.9% each.
The fear gauge, the CBOE Volatility Index (VIX) was up 3.4% to 16.64. A total of 18.89 billion shares were traded on Tuesday, higher than the last 20-session average of 17.66 billion. Decliners outnumbered advancers on the NYSE by a 1.12-to-1 ratio. On the Nasdaq, a 1.61-to-1 ratio favored declining issues.
Fed Chair’s Warnings
In his speech in Providence, Rhode Island, Fed Chairman Jerome Powell expressed concerns that asset prices, particularly risky equities, are highly overvalued now. CNBC reported that the Fed Chair was asked whether the central bank emphasized higher market prices.
In reply, Powell said, “We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we’re trying to achieve. But you’re right, by many measures, for example, equity prices are fairly highly valued.”
In a separate event in North Carolin, Federal Reserve Governor Michelle Bowman expressed her concerns about the weakening labor market and said that policymakers are “at serious risk of already being behind the curve.”
Weak Earnings Results
Firefly Aerospace Inc. FLY reported second-quarter 2025 adjusted loss of $5.30 per share, significantly wider than the Zacks Consensus Estimate of a loss of $0.42 per share. The mid-cap space and defense technology company reported quarterly revenues of $15.55 million, surpassing the Zacks Consensus Estimate of $15.19 million.
AutoZone Inc. AZO reported fourth-quarter fiscal 2025 adjusted earnings of $48.71 per share, missing the Zacks Consensus Estimate of $50.52 per share. The automotive retailer reported quarterly revenues of $6,242.73 million, beating the Zacks Consensus Estimate of $6,221.28 million.
As a result, the stock prices of Firefly Aerospace and AutoZone plummeted 15.3% and 0.02%, respectively. Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gold Price Hits Record-High
Gold prices are witnessing a solid northward journey this year, benefiting the stocks associated with yellow metal mining. Gold prices have climbed nearly 44% year to date. On Sept. 23, gold futures touched a new all-time high of $3,824.60/ounce. A low market interest rate is beneficial for non-income-bearing bullions like gold.
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AutoZone, Inc. (AZO): Free Stock Analysis Report Firefly Aerospace, Inc. (FLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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