Stock indexes closed lower on Tuesday, with the S&P 500, Dow Jones, and Nasdaq 100 all down. Chipmakers led the early market rally but later retreated. Optimism in AI sector growth supports stocks, despite a weaker than expected consumer credit increase. Fed comments on inflation and shutdown concerns affect market sentiment. Overseas markets mixed, with US government shutdown impact looming.

Gold prices hit record highs as investors seek safe havens amidst political uncertainty. Rising corporate earnings expectations boost stocks. Fed rate cut expectations high. T-notes rally on government shutdown and equity market slide. European bond yields lower. German factory orders disappoint. ECB rate cut unlikely. Market focus on tariffs, trade, and shutdown resolution.

Chip makers and AI stocks decline, dragging broader market. Seagate Tech and Lam Research among top losers. Aehr Test Systems down after revenue drop. Ford Motor faces disruptions. Homebuilder stocks pressured. Dollar Tree, GE Healthcare Tech downgraded. AppLovin, AMD, PayPal, Dell, Netflix, Veeva, IBM, Constellation Brands up on various news. Earnings reports scheduled for various companies.

Read more at Nasdaq: Stocks Settle Lower on Weakness in Chipmakers