Stocks break AI-driven rally; Powell's caution tempers U.S. yields

Market Overview - Wall Street stock indexes ended a three-day streak of record highs driven by artificial intelligence, with the Nasdaq Composite falling 0.95%, the Dow Jones Industrial Average down 0.19%, and the S&P 500 decreasing by 0.55% [1][3][4] - Tech stocks, including Nvidia, Amazon, Microsoft, and Apple, experienced declines after reaching record highs in previous sessions, with Nvidia's shares dropping 2.8% [2][4] Federal Reserve Insights - Federal Reserve Chair Jerome Powell indicated a cautious approach regarding future interest rate decisions, emphasizing the delicate balance between inflation threats and labor market weaknesses [2][5] - Following Powell's speech, market expectations for a 25 basis point rate cut in October increased to a 94% chance from 89.8% [5] Treasury Yields and Gold - U.S. Treasury yields decreased, with the 10-year note yield falling by 3.9 basis points to 4.106% and the 2-year bond yield down by 1.3 basis points to 3.588% [6] - Gold prices reached record highs, with the spot price rising 0.47% to $3,763.82 per ounce, as investors sought safe-haven assets amid stock market volatility [7]