Stock market today: Dow slides, S&P 500 and Nasdaq retreat from record-high rally

US equities retreated slightly from recent record highs on Thursday, with the S&P 500 and Nasdaq pausing their AI-driven rally, while the Dow also declined. Despite the broader market pullback, Nvidia surged to an all-time high on strong AI demand outlook and export approvals, and airline stocks rose following Delta's robust earnings beat. Concurrently, silver topped $50/oz for the first time in decades amid safe-haven demand, rare earth stocks jumped after China imposed new export controls, and oil prices fell on Middle East peace plan news, while JPMorgan CEO Jamie Dimon warned of a 30% chance of a market correction.

Analysis

US equities, including the S&P 500 and Nasdaq, retreated slightly from record highs, pausing the AI-driven rally. Nvidia (NVDA) surged to an all-time high on strong AI demand and export approvals, while UiPath (PATH) also gained significantly. JPMorgan CEO Jamie Dimon, however, warned of a 30% chance of a market correction, citing AI bubble concerns and geopolitical risks.

Third-quarter earnings season began positively. PepsiCo (PEP) beat profit and revenue expectations, and Delta Air Lines (DAL) surpassed forecasts, boosting airline stocks. Intel (INTC) reversed losses after unveiling new chips, with its 18A manufacturing process critical for its Foundry Services. Costco (COST) reported an 8% sales increase, providing positive corporate signals amidst delayed federal data.

Commodity markets showed divergent trends: silver (SLV) surged over 3.8% to top $50/oz for the first time in decades on safe-haven demand, while gold (GC=F) retreated. Oil prices (BZ=F, CL=F) fell over 0.8% following a Middle East peace plan, reducing geopolitical risk premium. Rare earth stocks like MP Materials (MP) gained over 10% after China announced new export controls, highlighting supply chain vulnerabilities.

Key Decisions for Investors

• Investors should closely monitor the AI sector for signs of overheating, balancing strong growth narratives from companies like Nvidia and UiPath against warnings of a potential bubble from figures like Jamie Dimon.
• Focus on corporate fundamentals and earnings reports, as demonstrated by PepsiCo and Delta's strong beats, given the current macroeconomic uncertainty and delayed federal data.
• Assess geopolitical developments and supply chain risks, particularly China's rare earth export controls and Middle East peace efforts, for their potential impact on commodity prices and related industries.
• Consider portfolio diversification and hedging strategies, including exposure to safe-haven assets like silver, in light of the mixed market signals and increased probability of a correction.