Wall street Retreats From Record Highs as Dollar Strengthens – 10/07/2025
NEW YORK – major U.S. stock indices retreated from record territory today as a resurgent dollar prompted profit-taking, despite continued investor enthusiasm for artificial intelligence and related technology. The S&P 500 reached a peak of 6,754 before closing down 0.38% at 6,715. The Nasdaq-100 similarly experienced a pullback, peaking above 25,000 before ending the session with a 0.55% loss at 24,480. The Russell-2000 fell 1.2% to 2,456 after briefly dipping below 2,500 points, while the Dow Jones Industrial Average declined 0.2% to 46,603, failing to achieve a new high.
The marketS shift comes amid a two-day rally for the U.S. dollar, with the Dollar Index gaining over 1% overall and 0.5% today. This strengthening dollar can weigh on corporate earnings, notably for multinational companies, and often leads investors to reassess riskier assets. While the U.S. government shutdown continues, Wall Street’s focus remains largely fixed on the AI sector, specifically suppliers of graphics processing units (GPUs).
AMD led gains in the tech space, surging 3.8% on the day and boasting a 27% increase over the past 48 hours, reaching an all-time high.However, the broader semiconductor industry faced headwinds, with KLA Corporation down 4.8%,NXP Semiconductors falling 5.1%,Applied Materials declining 5.5%, and LAM Research dropping 5.9%. Nvidia and Broadcom managed only modest gains.
The scheduled release of the United States trade balance was postponed due to the ongoing government shutdown. Bond yields saw a slight decrease, with the 30-year Treasury yield falling 3 basis points to 4.727%, the 10-year yield dropping 3.1 basis points to 4.135%, and the 2-year yield declining 2.5 basis points to 3.572%. West Texas Intermediate (WTI) crude oil briefly touched $61 a barrel before recovering to close up 0.5% at $62.
