Stock market today: Nasdaq, Dow, S&P 500 fall with divided Fed, Alibaba in focus

Market Overview - US stocks experienced a decline on Wednesday, with the S&P 500 and Dow Jones Industrial Average falling over 0.3%, and the Nasdaq Composite dropping 0.5%, reversing earlier gains [1] - The debate surrounding US interest rate cuts is currently pressuring stocks, with Federal Reserve officials indicating growing disagreement on policy direction due to labor market concerns [2] Federal Reserve Insights - Fed Chair Jerome Powell emphasized a cautious approach to further rate cuts while keeping the possibility of easing open, describing stocks as "fairly highly valued" [3] - The market is anticipating the release of the Personal Consumption Expenditures index, the Fed's preferred inflation gauge, which is expected to provide reassurance regarding inflation and its impact on potential rate cuts [3] Housing Market - New home sales unexpectedly surged in August as mortgage rates eased, indicating a release of pent-up demand among homebuyers, although affordability concerns remain [4] Technology Sector - Alibaba's stock rose by up to 10% following the company's commitment to increase AI spending beyond its initial $50 billion target, in response to a global surge in AI investment projected at $4 trillion [5] - Tesla shares increased by up to 3%, with analysts at Mizuho Securities raising their price target to $450, citing minimal impact from tariffs and optimism regarding the company's robotaxi plans [6] - Micron reported stronger-than-expected quarterly earnings, signaling positive trends for the AI sector, although its shares fell on Wednesday [7]