U.S. stocks ended slightly lower Tuesday, recovering from deeper losses as Treasury yields retreated from multi-decade highs following dovish comments from a Federal Reserve policymaker. Renewed enthusiasm around artificial intelligence stocks also helped limit Wall Street’s decline.
The S&P 500 fell 0.2% to 7,671.01, while the Nasdaq Composite slipped 0.1% to 26,797.54. The Dow Jones Industrial Average declined 0.3% to 51,350.99.
Treasury markets remained a major focus after long-term yields surged amid concerns over inflation, elevated oil prices, heavy AI infrastructure borrowing and rising U.S. government debt. New York Fed President John Williams later eased some pressure by saying policymakers did not need to rush their next interest rate decision.
The 10-year Treasury yield was last near 5.250% after reaching its highest level since April 2002, while the 30-year yield stood around 5.586% after touching its highest since June 2002.
Economic data added to uncertainty over the Federal Reserve outlook. U.S. job openings fell to 7.079 million in August from an upwardly revised 7.335 million in July, missing expectations of 7.230 million. The Conference Board’s consumer confidence index dropped to 81.9 in September, its weakest reading since May 2014.
Investors are now awaiting Wednesday’s reading of the Fed’s preferred inflation gauge and Friday’s nonfarm payrolls report for clues on future interest rate hikes.
Technology and AI stocks recovered despite concerns surrounding OpenAI’s decision to halt some model development. Sentiment improved after reports that Anthropic is targeting a valuation above $2 trillion in a potential IPO. The AI company reportedly generated nearly $4.6 billion in 2025 revenue while posting a $42 billion net loss.
Oil prices also provided some relief. Brent crude dropped about 2.2% to $95.64 per barrel as markets focused on potential U.S.-Iran negotiations and improving Gulf oil flows.
Among individual stocks, Carnival surged more than 13% following strong quarterly results, while Fair Isaac plunged nearly 27% after a regulatory development threatened increased competition in mortgage underwriting.


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