The major averages reversed course and fell into the red with the S&P 500 snapping a seven day winning streak on a sell off in AI stocks as the government shutdown extends into a second week. The Dow Jones Industrial Average fell 91 points, or 0.2%, to end at 46,602. The S&P 500 fell 25 points or 0.38% while the Nasdaq Composite 153 points or 0.67% to finish at 22,788.

Oracle led a decline in tech stocks after The Information reported that the software company is generating much lighter margins on its cloud business than analysts currently estimate and that it is losing money on some of its deals for rental of Nvidia chips. Oracle fell 2.5% with all the big cap techs lower except for Amazon. Most chip and chip equipment stocks were lower as well. Tesla’s big news of a lower end Model Y car sparked a sell off in the stock.

IBM was a diamond in the tech space on a deal with Anthropic while rival, Dell rose 3% after reaffirming guidance.  Consumer staples and consumer defensive stocks performed well as a flight to safety.

U.S. Treasury yields fell with no economic data. However, a few Fed officials will speak this week. The 10-year Treasury yield dropped 3 basis points to 4.13%. The 30-year bond yield fell 3 basis points to 4.72%. The 2-year Treasury yield fell 2 basis points to 3.57%.

In the commodity space, oil was higher, but remains stuck in the low $60 a barrel range. Golf rose over $4000 an ounce for the first time ever. Crypto currencies pulled back with bitcoin down nearly 3% and Ethereum down 4%.

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it’s usage.