U.S. stock indexes declined on October 7, 2025, as investors reacted to growing economic uncertainty fueled by a prolonged government shutdown that has halted the release of official economic data. With limited access to primary indicators, market participants turned to alternative sources and Federal Reserve commentary for direction.
The Dow Jones Industrial Average dropped 91.99 points, or 0.20%, closing at 46,602.98. The S&P 500 fell 25.69 points, or 0.38%, to 6,714.59, while the Nasdaq Composite lost 153.30 points, or 0.67%, ending the day at 22,788.36.
A consumer expectations survey from the New York Federal Reserve contributed to the downturn, revealing weakening outlooks and higher inflation forecasts. The report gained heightened attention due to the absence of federal economic releases, now in their seventh day of suspension amid a congressional deadlock.
“The New York Fed report probably gave traders an excuse to take some profits since the S&P had been up for seven days in a row,” noted Sam Stovall, chief investment strategist at CFRA Research. “There is an awful lot of uncertainty the longer the government remains shut down because of the absence of any economic data.”
Meanwhile, Paul Nolte, senior wealth adviser at Murphy & Sylvest, observed that enthusiasm around artificial intelligence-driven market gains may be cooling.
Sector performance varied, with consumer discretionary posting the largest decline among S&P 500 sectors. Consumer staples and utilities emerged as relative outperformers.
Individual stocks showed mixed results. Tesla shares fell 4.5% following the launch of its lower-priced Model Y. Constellation Brands rose 1% after reporting a smaller-than-expected drop in quarterly sales. AMD gained 3.8% after brokerages raised price targets following a supply agreement with OpenAI. IBM climbed 1.5% on news of a partnership with AI firm Anthropic.
AppLovin surged 7.6% after reassurances from Citi Research and Oppenheimer eased concerns over a reported SEC investigation into its data practices. U.S.-listed shares of Trilogy Metals skyrocketed 207.8% after the White House announced a 10% stake acquisition.
Cryptocurrency-related equities, including Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital, reversed previous gains as bitcoin retreated from record levels.
On the New York Stock Exchange, declining stocks outnumbered gainers by nearly 2-to-1. Volume across U.S. exchanges reached 20.8 billion shares, above the 20-day average of 19.44 billion.
— news from Reuters
— News Original —
Wall Street retreats from record closing highs as economic worries mount
Summary n nCompanies n nConstellation Brands ‘ Q2 sales dip less than expected n nTesla down after launching low-cost model n nCrypto shares slide as bitcoin declines n nIndexes down: Dow 0.20%, S&P 500 0.38%, Nasdaq 0.67% n nNEW YORK, Oct 7 (Reuters) – U.S. stocks closed lower on Tuesday as investors, deprived of economic data resulting from the shuttered government, looked to secondary indicators and remarks from U.S. Federal Reserve officials for clues regarding economic weakness and monetary policy. n nAll three indexes ended in negative territory after a consumer expectations survey from the New York Federal Reserve showed deteriorating future expectations and rising inflation projections. The report garnered increased scrutiny amid a federal data blackout resulting from a partisan congressional impasse that extended the government shutdown to its seventh day. n nSign up here. n nInvestors have had to rely on secondary, independently produced data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month ‘s policy meeting. n n”The New York Fed report probably gave traders an excuse to take some profits since the S&P had been up for seven days in a row,” said Sam Stovall, chief investment strategist of CFRA Research in New York. “There is an awful lot of uncertainty the longer the government remains shut down because of the absence of any economic data.” n n”The market is still very much centered on AI driving everything, and I think some of the bloom is off the rose,” said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois. n nFed Governor Stephen Miran stated his case for continued rate cuts, stressing the risks of keeping policy too restrictive. n nThe Dow Jones Industrial Average (.DJI), opens new tab fell 91.99 points, or 0.20%, to 46,602.98, the S&P 500 (.SPX), opens new tab lost 25.69 points, or 0.38%, to 6,714.59 and the Nasdaq Composite (.IXIC), opens new tab lost 153.30 points, or 0.67%, to 22,788.36. n nAmong the 11 major sectors of the S&P 500, consumer discretionary (.SPLRCD), opens new tab suffered the steepest percentage decline, while consumer staples (.SPLRCS), opens new tab and utilities (.SPLRCU), opens new tab were the top gainers. n nTesla (TSLA.O), opens new tab shares extended their losses, dropping 4.5% after the electric carmaker unveiled its low-cost Model Y. n nAMD (AMD.O), opens new tab advanced 3.8% after Jefferies upgraded the stock rating to “buy” and other brokerages hiked their price targets the day after the chipmaker ‘s supply deal with OpenAI bolstered the tech rally. n nCorona beer maker Constellation Brands (STZ.N), opens new tab gained 1% after posting a smaller-than-expected drop in second-quarter sales. n nIBM (IBM.N), opens new tab rose 1.5% after the company announced a partnership with AI startup Anthropic. n nU.S.-listed shares of Trilogy Metals soared 207.8% after the White House said it would acquire a 10% stake in the company. n nAppLovin (APP.O), opens new tab surged 7.6%, recouping nearly half of its losses from the prior session, and topped the S&P 500 after brokerages Citi Research and Oppenheimer allayed concerns after a report on a U.S. Securities and Exchange Commission probe into its data collection practices. n nBitcoin-related stocks, including Coinbase (COIN.O), opens new tab, Strategy (MSTR.O), opens new tab, Riot Platforms (RIOT.O), opens new tab, and MARA Holdings (MARA.O), opens new tab, reversed Monday ‘s gains as the cryptocurrency backed away from record highs. n nDeclining issues outnumbered advancers by a 1.93-to-1 ratio on the NYSE. There were 350 new highs and 75 new lows on the NYSE. n nOn the Nasdaq, 1,527 stocks rose and 3,126 fell as declining issues outnumbered advancers by a 2.05-to-1 ratio. n nThe S&P 500 posted 36 new 52-week highs and eight new lows while the Nasdaq Composite recorded 121 new highs and 70 new lows. n nVolume on U.S. exchanges was 20.8 billion shares, compared with the 19.44 billion average for the full session over the last 20 trading days. n nReporting by Stephen Culp; Additional reporting by Niket Nishant and Sukriti Gupta in Bengaluru Editing by Rod Nickel