Kiplingerยท2025-09-24 20:10Market Overview - Stocks opened modestly higher but enthusiasm faded due to a sell-off in AI heavyweights and concerns over a potential government shutdown [1] - At the close, the Dow Jones Industrial Average was down 0.4% at 46,121, the S&P 500 was off 0.3% at 6,637, and the Nasdaq Composite was 0.3% lower at 22,497, although all three indexes are set to end the quarter and month with impressive gains [2] Sector Performance - The materials sector was the worst performer among the S&P 500 sectors, impacted by a 17% decline in Freeport McMoran (FCX) after the company cut its third-quarter sales guidance due to halted operations at its Grasberg Block Cave mine in Indonesia [3] - The technology sector also closed in the red, with major AI stocks Nvidia (NVDA) down 0.8% and Oracle (ORCL) down 1.7% for the second consecutive day [6] Company Highlights - Micron Technology (MU) reported higher-than-expected earnings and revenue for its fiscal fourth quarter, with strong guidance for the first quarter. Analyst Quinn Bolton noted robust AI demand and tightening DRAM supply, reiterating a Buy rating and raising the price target to $200 from $150, indicating over 33% upside [7] - Alibaba Group Holding (BABA) shares rose 8.2% after announcing plans to increase AI spending, with CEO Eddie Wu stating a three-year, 380 billion yuan AI infrastructure initiative [9][10] - Lithium Americas (LAC) surged 95.8% after confirming reports of a potential 10% stake from the Trump administration, as the company renegotiates a $2.26 billion loan for its Thacker Pass mine, expected to be a major lithium source in North America [11][12] Economic Indicators - New home sales surged 20.5% from July to August, reaching a seasonally adjusted annual rate of 800,000, the highest in three years, attributed to lower mortgage rates and increased builder incentives [13]