After several days of strong gains, the stock market is finally cooling off. All major U.S. stock indexes fell on Tuesday, with riskier investments like cryptocurrencies taking even bigger hits. Investors appear to be locking in profits after a huge rally that saw the Nasdaq 100 jump about 50% and the S&P 500 climb roughly 40% since their lows in April.

Even with limited economic data due to the ongoing U.S. government shutdown, investors still expect the Federal Reserve to cut interest rates soon. In fact, markets are pricing in a 95% chance of a small 0.25% rate cut at the Fed’s next meeting on October 30.

Market volatility is rising again, with the VIX (Volatility Index) up 5%. Defensive sectors—like consumer staples, utilities, and healthcare—were the only areas showing gains. Meanwhile, smaller companies are struggling more than large ones, as shown by the Russell 2000 index falling 1.1%, its worst day since mid-August.

Advanced Micro Devices (AMD) continued to shine, climbing another 4% after its massive 23.7% gain on Monday. That surge came after AMD’s partnership with OpenAI, which has sparked excitement in the AI space. Major banks like Bank of America and Goldman Sachs raised their price targets on AMD shares to $250 and $210, respectively.

On the downside, Ford Motor Co. dropped 6.5%, its worst day since February. The decline came after a fire at Novelis, a key aluminum supplier, which is expected to disrupt production until early 2026. General Motors also slipped 2.2%.

Gold had another record-breaking day, soaring past $4,000 per ounce for the first time. This marks the metal’s 11th gain in the past 13 sessions. However, silver went in the opposite direction, falling nearly 2% and dipping below $48 per ounce.

Cryptocurrencies also took a breather. Bitcoin dropped 2.5% to around $121,500, ending a six-day winning streak. Ethereum fell 4% to $4,500, while Solana slid 4.2% to $223. Strategy Inc., a company heavily tied to crypto markets, fell sharply by 7%.

Here’s how major U.S. indexes and ETFs performed:

– Vanguard S&P 500 ETF (VOO): Down 0.4% to $614.90
– SPDR Dow Jones Industrial Average ETF (DIA): Down 0.2% to $465.74
– Invesco QQQ Trust (QQQ): Down 0.5% to $604.64
– iShares Russell 2000 ETF (IWM): Down 1% to $244.26
– Utilities Select Sector SPDR Fund (XLU): Up 0.9%
– Consumer Discretionary Select Sector SPDR Fund (XLY): Down 1.1%

Top performing S&P 500 stocks included AMD and Estee Lauder (up 4.4%). Meanwhile, big losers were Seagate Technology (down 7.6%), Strategy Inc. (down 7%), and D.R. Horton (down 5.4%).

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