Traders work on the floor at the New York Stock Exchange in New York City, U.S., Sept. 17, 2025.
Brendan McDermid | Reuters
The S&P 500 struggled on Tuesday, bogged down by a drop in Oracle shares amid investors’ worries about the profitability of the artificial intelligence rollout. Wall Street also looked for more developments out of Washington with the U.S. government shutdown in its second week.
The broad market index pulled back 0.38% to close at 6,714.59, snapping a 7-day winning streak, while the Nasdaq Composite fell 0.67% to finish at 22,788.36. The Dow Jones Industrial Average fell 91.99 points, or 0.2%, to settle at 46,602.98.
Oracle led a decline in tech stocks after The Information reported that the software company is generating much lighter margins on its cloud business than analysts currently estimate and that it is losing money on some of its deals for rental of Nvidia chips. Oracle shares lost 2.5%, and the Nasdaq hit its low of the session as a result of the news.
“There’s a lot of interest in capex spending and making sure that you’re first or you have the ability to source the technology you need to grow profits in this new AI realm,” Ameriprise’s chief market strategist Anthony Saglimbene told CNBC. “Investors, at some point, will look at how much money is being spent and say, ‘What’s the return on investment?'”
“It doesn’t mean that AI is in a bubble. It just means that there’s probably some opportunity for a little bit of reset in expectations, particularly about the results and profitability that come from just this enormous amount of money that’s being thrown into AI right now,” he continued.
The shutdown continues
Hopes that the government would reopen on Monday were dashed after the Senate for a fifth time failed to pass a House bill that would have funded the government through Nov. 21. The chamber voted mostly along party lines. At least eight Democrats need to join Republicans to meet the 60-vote necessary for advancing the legislation.
President Donald Trump once again blamed Democrats for the shutdown in a Truth Social post Monday evening, in which he wrote that he’s “happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open.” The president had earlier that day suggested that talks with Democrats, who have demanded that any stopgap funding measure should include an extension of enhanced Obamacare tax credits, were taking place and paying off.
“We have a negotiation going on right now with the Democrats that could lead to very good things,” he said in the Oval Office. “And I’m talking about good things with regard to healthcare.”
However, that was later denied by Senate Minority Leader Chuck Schumer, D-N.Y., who said in a post on X Monday that “THIS ISN’T TRUE.” He added: “If Republicans are finally ready to sit down and get something done on health care for American families, Democrats will be there—ready to make it happen.”
The uncertainty around the government shutdown drove investors to hedge on riskier bets and move into safe-haven assets, leading gold futures to hit $4,000 per ounce for the first time.
The shutdown, which stretched into its seventh day Tuesday, could pose an even greater risk to the U.S. economy the longer it drags on. Not only has it delayed the release of key economic data but it also means that certain workers, such as those in the TSA and air traffic controllers, are not getting paid. Active duty members of the armed services similarly won’t get paid if the stoppage doesn’t end by the middle of next week. Trump said Tuesday that back pay for furloughed workers “depends on who we’re talking about.”
“As we move closer to the end of the week and furloughed workers don’t get a check, and then into next week where active duty military doesn’t receive a paycheck that are still working, you could see more pressure on Congress to get to some kind of agreement,” Saglimbene said.
Adding to investors’ angst was increased uncertainty around the Trump administration’s trade policy after the president said he’d discuss tariffs on Canadian imports with country’s Prime Minister Mark Carney, noting that he wants Canada “to do great,” but it’s “competing for the same business” with the U.S.
