After a $16 trillion surge from its lows, the S&P 500 falls – US Market Wrap

Wall Street traders pushed stocks lower after a string of all-time highs prompted calls for a pause amid signs of buyer exhaustion. Bond prices climbed as a $58 billion Treasury offer received strong interest.

The ebullience fuelled by artificial intelligence gave way to concerns about the rally’s excess following the S&P 500’s $16 trillion climb from its April lows. The index fell when a report revealed that Oracle’s cloud margins are lower than many estimate. Tesla fell more than 4% after launching new versions of its best-selling models priced below $40,000.

The S&P 500 dropped to roughly 6,715. Oracle fell 2.5%, while Dell rose 3.5% after raising forecasts amid strong AI demand. US 10-year yields fell two basis points to 4.13%. The dollar climbed.

Traders also studied words from Fed Officials, with Fed’s Miran stating that his estimates for a modest impact of tariffs on inflation indicate the Fed can continue to ease policy. Fed’s Kashkari warned that any extreme rate reduction risk escalating prices.