US close: Stocks fall as indices continue retreat from record highs
By Benjamin Chiou
Date: Wednesday 24 Sep 2025
(Sharecast News) - US stocks fell for the second day on Wednesday as indices continued to retreat from recent records amid mounting concerns about a potential government shutdown and elevated valuations.
The Dow fell 0.4%, while the S&P 500 and Nasdaq both slipped 0.3%, with all three indices continuing their pullback after hitting all-time closing highs on Monday.
Continuing to weigh on sentiment were comments on Tuesday from Federal Reserve chairman Jerome Powell, who said that equity prices were relatively high and offered little guidance about the central bank's next move on interest rates. Powell said stocks were "fairly highly valued".
Political uncertainty added to the risk backdrop, with investors monitoring developments in Washington as the threat of a government shutdown loomed. Donald Trump cancelled a meeting with Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries that had been expected to help avert a shutdown before the 30 September deadline.
The US dollar was on the rise on Wednesday, with the dollar index up 0.6% at 97.87 - its highest level in three weeks.
"The dollar's recovery from its September low continues as safe haven buying begins to revive ahead of next week's possible government shutdown. Market veterans will regard the whole sorry prospect as an unnecessary drama, just with the roles reversed from the last time," said Chris Beauchamp, chief market analyst at IG.
"Predictions of market meltdown are likely to be wide of the mark however, such events being a wearisome but seemingly-permanent feature of modern US governance."
In economic news, US mortgage applications rose by 0.6% week-on-week in the seven days ended 19 September, according to the Mortgage Bankers Association of America, holding the near 30% surge from the prior week, which was the second-highest weekly reading since interest rates crashed in March 2020.
Meanwhile, new home sales surged 20.5% in August to a three-year high of 800,000, well ahead of the 650,000 expected by analysts, as discounting by developers sparked a jump in demand.
Market movers
Shares in leading AI names Nvidia and Oracle were extending losses made on Tuesday, as investors grew wary of stretched valuations and the increasingly circular nature of the sector's growth narrative.
Even Micron Technology was in the red despite some better-than-expected earnings and solid guidance. Micron also stated the artificial intelligence boom had boosted revenues by 46% in Q1.
US-listed shares of Alilbaba surged after the Chinese marketplace giant announced increased investments into its AI businesses as it launched new AI products.
Dow Jones - Risers
Intel Corp. (INTC) $31.23 6.42%
Microsoft Corp. (MSFT) $509.93 0.14%
Nike Inc. (NKE) $70.64 0.00%
Salesforce.Com Inc. (CRM) $245.74 0.00%
Travelers Company Inc. (TRV) $275.61 0.00%
Caterpillar Inc. (CAT) $473.03 0.00%
Walt Disney Co. (DIS) $113.78 0.00%
Johnson & Johnson (JNJ) $176.65 0.00%
Chevron Corp. (CVX) $160.11 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Dow Jones - Fallers
Apple Inc. (AAPL) $252.21 -0.87%
Travelers Company Inc. (TRV) $275.61 0.00%
Goldman Sachs Group Inc. (GS) $805.73 0.00%
Walgreens Boots Alliance, Inc. (WBA) $11.98 0.00%
3M Co. (MMM) $155.40 0.00%
Coca-Cola Co. (KO) $66.43 0.00%
McDonald's Corp. (MCD) $305.17 0.00%
Boeing Co. (BA) $215.82 0.00%
Walmart Inc. (WMT) $102.88 0.00%
International Business Machines Corporation (CDI) (IBM) $270.62 0.00%
S&P 500 - Risers
Xcel Energy Inc. (XEL) $78.02 6.82%
Intel Corp. (INTC) $31.23 6.42%
Ross Stores Inc. (ROST) $149.43 2.57%
eBay Inc. (EBAY) $93.34 2.50%
QUALCOMM Inc. (QCOM) $173.38 2.27%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $535.56 2.09%
Microchip Technology Inc. (MCHP) $65.98 1.96%
Apache Corp. (APA) $24.42 1.81%
Nektar Therapeutics (NKTR) $60.62 1.71%
Diamondback Energy Inc. (FANG) $144.60 1.70%
S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $17.03 -7.06%
Illumina Inc. (ILMN) $94.41 -4.99%
Synopsys Inc. (SNPS) $468.11 -4.53%
Electronic Arts Inc. (EA) $167.30 -3.89%
Ipg Photonics Corp. (IPGP) $79.13 -3.28%
Micron Technology Inc. (MU) $161.67 -2.85%
Lam Research Corp. (LRCX) $128.30 -2.75%
United Airlines Holdings Inc (UAL) $101.36 -2.66%
Cadence Design Systems Inc. (CDNS) $357.20 -2.48%
Adobe Systems Inc. (ADBE) $353.30 -2.34%
Nasdaq 100 - Risers
Intel Corp. (INTC) $31.23 6.42%
Baidu Inc. (BIDU) $132.98 5.90%
JD.com, Inc. (JD) $34.84 5.77%
Tesla Inc (TSLA) $442.92 4.01%
Ross Stores Inc. (ROST) $149.43 2.57%
eBay Inc. (EBAY) $93.34 2.50%
QUALCOMM Inc. (QCOM) $173.38 2.27%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $535.56 2.09%
Microchip Technology Inc. (MCHP) $65.98 1.96%
Regeneron Pharmaceuticals Inc. (REGN) $576.63 1.54%
Nasdaq 100 - Fallers
Illumina Inc. (ILMN) $94.41 -4.99%
Synopsys Inc. (SNPS) $468.11 -4.53%
Electronic Arts Inc. (EA) $167.30 -3.89%
Micron Technology Inc. (MU) $161.67 -2.85%
Lam Research Corp. (LRCX) $128.30 -2.75%
Cadence Design Systems Inc. (CDNS) $357.20 -2.48%
Adobe Systems Inc. (ADBE) $353.30 -2.34%
Henry Schein Inc. (HSIC) $67.75 -2.11%
Sirius XM Holdings Inc (SIRI) $22.57 -2.08%
Seagate Technology Plc (STX) $223.73 -1.93%
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