Indexes down: Dow 0.34%, S&P 500 0.43%, Nasdaq 0.56%

Lithium Americas soars after report Trump administration mulling stake

Alibaba gains on Nvidia partnership, data center plans

Oracle dips after report it is looking to raise $15 bln in bond sales

By niket nishant and sukriti gupta

The main U.S. stock indexes ticked lower on Wednesday, a day after breaking a three-day record closing streak, as traders assessed measured comments from Federal Reserve Chair Jerome Powell and awaited key economic data due later in the week.

Investors are treading cautiously as the central bank attempts to strike a delicate balance between managing inflation risks and responding to signs of a weakening labor market.

Powell said on Tuesday asset prices appeared fairly highly valued. As his colleagues staked out arguments on both sides of the policy divide, the Fed chair emphasized the tightrope the central bank must walk in upcoming policy decisions.

“Markets started discounting the tariff risks and then recovered because there were exemptions,” said Jitania Kandhari, deputy CIO of portfolio solutions at Morgan Stanley Investment Management.

Last week’s Fed rate cut helped lift equities in September, typically a weak month for stocks, with investors now banking on further easing to keep the rally alive.

But whether more cuts are warranted will depend heavily on data, Kandhari said.

At 12 p.m. ET, the Dow Jones Industrial Average fell 155.77 points, or 0.34%, to 46,137.30, the S&P 500 lost 28.83 points, or 0.43%, to 6,628.09, and the Nasdaq Composite shed 127.36 points, or 0.56%, to 22,446.11.

The S&P 500 energy index ground up 2%, tracking higher crude prices. Consumer discretionary stocks edged up 0.5%.

These were countered by a 0.7% decline in heavyweight tech shares, with Apple and Nvidia falling more than 1% each.

Data released on Wednesday showed the sales of freshly constructed single-family U.S. homes unexpectedly surged by 20.5% in August.

“If the housing market is starting to regain some life, the Fed might take that as an indication that there is less room to lower rates,” William Blair analyst Richard de Chazal said in a note.

U.S.-listed shares of Chinese companies rose, led by an 8.9% rise in Alibaba Group, which unveiled a partnership with Nvidia.

Lithium Americas’ U.S.-listed shares nearly doubled after Reuters reported on Tuesday that President Donald Trump’s administration was seeking an up to 10% equity stake in the company.

Talks are underway to discuss a government loan exceeding $2.26 billion for the company’s Thacker Pass lithium project with General Motors, which rose 1.4%. UBS also upgraded General Motors to “buy” from “neutral”.

Micron Technology fell 4% after the memory chipmaker reported quarterly results.

Oracle slipped 3.5% after a report said the company was looking to raise $15 billion in corporate bond sales.

Freeport-McMoRan fell 11.7% to the bottom of the benchmark index after forecasting lower consolidated sales for copper and gold in the third quarter.

Investors will now focus on core personal consumption expenditures data, the Fed’s preferred inflation gauge, due for release later this week.

Declining issues outnumbered advancers by a 1.58-to-1 ratio on the NYSE and by a 1.29-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and six new lows, while the Nasdaq Composite recorded 73 new highs and 39 new lows.

This article was generated from an automated news agency feed without modifications to text.