Market Pulls Back After Setting Fresh Records

The stock market started the day on a positive note, with early momentum lifting the S&P 500 (-0.3%) and Nasdaq Composite (-0.1%) to new record highs. However, that strength proved short-lived as a broad-based selloff took hold late in the morning, leaving the major averages to close lower. The Dow Jones Industrial Average (-0.5%) underperformed its peers, extending its weekly losses.

Sector performance deteriorated steadily throughout the day. Only the consumer staples (+0.6%) sector managed to finish in positive territory, benefiting from a series of upbeat corporate headlines. Costco (COST 942.89, +28.09, +3.07%) rose on news of a 6% jump in September comparable sales, while PepsiCo (PEP 144.73, +5.89, +4.24%) posted an earnings beat. Kenvue (KVUE 16.84, +0.76, +4.70%) also ranked among the S&P 500’s top gainers as it extended its rebound from recent lows.

Elsewhere, the day’s weakest performers included materials (-1.5%), industrials (-1.4%), and energy (-1.3%). Gold retreated from record highs, settling $93.90 lower (-2.3%) at $3,976.50 per ounce, while energy stocks followed oil lower as WTI crude fell $1.15 (-1.8%) to $61.42 per barrel. In the industrial space, airline shares offered a bright spot after strong earnings from Delta (DAL 59.57, +2.45, +4.29%) lifted United Airlines (UAL 101.34, +3.25, +3.31%), but weakness in defense names—pressured by China’s new export restrictions on rare earth materials—kept the sector in negative territory.

Mega-cap stocks saw a volatile session. Tesla (TSLA 435.46, −3.23, −0.74%) narrowed early losses, while Meta Platforms (META 733.51, +15.67, +2.18%), Amazon (AMZN 227.74, +2.52, +1.12%), and NVIDIA (NVDA 192.57, +3.46, +1.83%) all contributed to a partial late-day rebound. Oracle (ORCL 297.04, +8.41, +2.91%) added further support, helping the information technology sector (-0.1%) finish near flat despite widespread softness.

While trading lacked major macro catalysts—owing to the ongoing government shutdown, which has halted economic data releases and delayed funding votes—investors showed tentative signs of reentering the market late in the day. A wave of buying in the largest names hinted that the familiar “buy-the-dip” mentality remains intact, even as markets pause for breath near record highs.

Our FTinvest 11 model portfolio ended sharply lower today, falling 1.01% to close at 843.62, as profit-taking and renewed weakness in growth sectors weighed on the portfolio.

The session opened with mild optimism but quickly reversed course as selling pressure built across all holdings. By midday, the index had slipped decisively below its recent trading range, with only a handful of defensive components managing to offset the decline. Late-session stabilization prevented deeper losses, yet the tone remained cautious into the close.

Today’s downturn followed a week of mixed performance across global markets, where rising uncertainty over interest-rate policy and soft corporate guidance dampened investor sentiment. Within FTinvest 11, the pullback was broad-based, with leadership names that had recently driven record highs showing the sharpest declines.

Despite today’s setback, the index remains near the upper end of its quarterly range and continues to outperform major U.S. benchmarks year-to-date. Still, the day’s retreat underscored the market’s fragile balance between optimism over earnings resilience and concern that valuations may have outpaced near-term fundamentals.