Stocks Break Winning Streak as Gold Surges

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 fell 25.69 points, or 0.4% to 6,714.59, breaking a seven-day winning streak.
• The Dow Jones Industrial Average fell 91.99 points, or 0.2%, to 46,602.98.
• The Nasdaq composite fell 153.30 points, or 0.7%, to 22,788.36.

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, the AP reports.

Tesla was the heaviest weight on the market and dropped 4.4% after unveiling cheaper versions of two of its electric car models. 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.

• Other AI-related stocks fared better: 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 US 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.

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. The company 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 US 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 beat analysts' expectations. Sales of beer still dropped from a year earlier, though, as CEO Bill Newlands highlighted a "challenging socioeconomic environment that has dampened consumer demand."

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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 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, and its stock soared 250.9%.