U.S. stocks were little changed Tuesday as investors balanced renewed enthusiasm around artificial intelligence against rising Treasury yields, elevated oil prices and uncertainty over the Federal Reserve’s interest-rate path.

The market is entering the final days of September with several competing forces in play. AI-related stocks continue to attract capital, while higher borrowing costs are creating pressure on equity valuations. At the same time, fresh labor-market data showed that U.S. job openings declined in August, adding another data point for investors assessing the strength of the economy.

 

Wall Street Struggles to Find Direction as Treasury Yields Rise

The S&P 500 was essentially flat in Tuesday morning trading after falling 0.8% on Monday. The Dow Jones Industrial Average was also lower, while the Nasdaq Composite held slightly higher as technology and semiconductor stocks provided support.

A major factor behind the cautious trading environment is the bond market.

The 10-year U.S. Treasury yield climbed above 5%, approaching levels last seen in 2007. Higher Treasury yields can put pressure on stocks because they increase borrowing costs for businesses and consumers while also providing investors with a higher potential return from relatively lower-risk government securities.

The rise in yields has been particularly important for growth and technology stocks, where valuations are often more sensitive to changes in interest rates.

Investors are also watching the 30-year Treasury yield, which has remained elevated. The combination of higher short- and long-term borrowing costs is keeping monetary policy at the center of the market narrative.

Oil Prices Remain a Major Inflation Risk

Energy markets are another major source of uncertainty.

Brent crude prices moved lower Tuesday after rising sharply during the previous session, but crude remained elevated compared with levels seen before the latest escalation involving the United States, Iran and oil shipments through the Strait of Hormuz.

Brent crude was recently trading around the $100-per-barrel area, while West Texas Intermediate remained above $90.

The market is closely monitoring developments affecting Middle Eastern oil production and transportation. Any prolonged disruption could keep energy prices elevated and potentially add to inflation pressures.

That creates a difficult situation for the Federal Reserve. Higher oil prices can increase inflation while simultaneously putting pressure on household purchasing power and corporate margins.

For investors, the key question is whether energy costs remain elevated long enough to influence inflation expectations and monetary policy.

Job Openings Fall, but the Labor Market Remains Relatively Stable

New labor-market data released Tuesday showed that U.S. job openings declined in August.

The Bureau of Labor Statistics reported 7.079 million job openings at the end of August, down 256,000 from July’s revised 7.335 million. The August figure was also below economists’ expectations of approximately 7.225 million.

However, the report did not show a sharp deterioration across the labor market.

Hiring increased to 5.192 million, while layoffs and discharges declined to 1.641 million. The relatively low level of layoffs suggests employers remain cautious about hiring but are not broadly cutting existing workforces.

The data therefore gives investors a mixed picture. Labor demand is cooling, but employment conditions remain relatively stable.

The next major test will come Friday, when the September employment report is scheduled for release.

The Federal Reserve raised its benchmark interest rate by 25 basis points this month, bringing the target range to 3.75% to 4%. Markets are now closely watching whether another increase could come at the October meeting.

AI Optimism Returns With Anthropic IPO Filing

Artificial intelligence remains one of the strongest sources of enthusiasm in the equity market.

Investor attention shifted toward Anthropic after details from the AI company’s IPO prospectus emerged. The company could seek a valuation above $2 trillion, according to Reuters reporting based on the filing.

The numbers illustrate both the scale of the AI opportunity and the enormous capital requirements involved.

Anthropic generated nearly $4.6 billion in revenue during 2025, representing a roughly twelvefold increase from the previous year. At the same time, the company reported a $42 billion net loss for the year, with a substantial portion related to accounting adjustments.

The company also expects significant future spending commitments for cloud computing and infrastructure.

The potential IPO is important beyond Anthropic itself because it could provide public-market investors with another major reference point for valuing private AI companies and the broader AI ecosystem.

Publicly traded companies such as Nvidia ($NVDA), Microsoft ($MSFT), Alphabet ($GOOGL), Amazon ($AMZN), Meta Platforms ($META) and other technology companies remain closely connected to the AI investment cycle through chips, cloud infrastructure, software and applications.

Nvidia Expands Share Buybacks as AI Spending Remains in Focus

Nvidia ($NVDA) is also receiving attention after announcing a major expansion of its share repurchase program.

The company has become one of the largest beneficiaries of the AI infrastructure boom, supplying the processors used to train and operate increasingly sophisticated AI systems.

The buyback announcement adds another dimension to the AI investment story. While investors continue to focus on demand for AI computing infrastructure, Nvidia is also returning capital to shareholders.

The broader question for the market is increasingly shifting from whether companies will spend heavily on AI to whether that spending will ultimately produce sufficient revenue and profits.

That issue is particularly relevant as AI infrastructure investments reach extraordinary levels across the technology sector.

AMD Makes a Major AI Acquisition

Advanced Micro Devices ($AMD) is also expanding its position in AI.

The company announced an agreement to acquire AI research company World Labs in an all-stock transaction valued at approximately $8.2 billion.

The deal highlights the intensifying competition around AI infrastructure and technology.

AMD has been attempting to expand its position in a market where Nvidia has established a dominant presence. Acquiring AI capabilities and talent could help AMD strengthen its broader AI strategy as demand for computing infrastructure continues to grow.

The transaction also shows how AI investment is increasingly extending beyond semiconductor manufacturing into software, research and specialized AI technologies.

CarMax Shares Jump After Strong Earnings

Outside the technology sector, CarMax ($KMX) was one of Tuesday’s notable market movers.

The used-car retailer reported second-quarter net earnings of $165.3 million, compared with $95.4 million a year earlier. Earnings came in at $1.16 per share, above the $0.73 expected by analysts surveyed by FactSet.

Revenue and operating revenue increased 19% to $7.88 billion.

CarMax also reported a 15% increase in combined retail and wholesale vehicle unit sales. The company said it plans to resume share repurchases, with approximately $1.31 billion remaining under its current authorization.

The results provide investors with another data point on consumer demand in a market where high vehicle prices and elevated interest rates remain important considerations.

Fair Isaac Shares Fall After Mortgage Pricing Changes

Fair Isaac ($FICO), meanwhile, faced significant selling pressure after U.S. housing regulators announced changes to mortgage credit scoring.

The Federal Housing Finance Agency said Fannie Mae and Freddie Mac would move toward a unified mortgage pricing framework incorporating VantageScore alongside the traditional FICO Classic score.

The change could introduce additional competition into an area where FICO has historically held a significant position.

FICO shares fell sharply following the announcement as investors assessed the potential implications for the company’s mortgage-related business.

Rocket Companies ($RKT), which operates Rocket Mortgage, said it plans to use VantageScore 4.0 as its preferred credit scoring model for eligible loans.

The development demonstrates how regulatory changes can quickly affect individual stocks even when broader market indexes are relatively stable.

What Investors Are Watching Next

The stock market enters the final days of September with several major variables competing for attention.

First, Treasury yields remain elevated and could continue influencing equity valuations. Second, oil prices remain sensitive to geopolitical developments and could affect inflation. Third, labor-market data will be important as investors assess whether economic growth is slowing enough to influence Federal Reserve policy.

At the same time, AI remains a major source of market momentum. Anthropic’s potential multitrillion-dollar IPO valuation, Nvidia’s massive buyback program and AMD’s acquisition of World Labs all highlight the enormous amount of capital flowing into the AI economy.

The next major catalyst arrives Friday with the September jobs report. Until then, investors are likely to continue weighing the competing signals from inflation, employment, interest rates, energy markets and corporate earnings.

For the broader stock market, Tuesday’s relatively muted trading session reflects that uncertainty. Technology and AI optimism are supporting equities, but elevated yields and energy prices remain significant counterweights as investors head into October.