Wall Street jolted by Trump buyback, home-buying moves; S&P 500 slips, Nasdaq steadied by AI
NEW YORK, Jan 7, 2026, 21:13 (EST) U.S. stocks slipped on Wednesday, with the S&P 500 and Dow closing lower after touching record highs earlier in the session as President Donald Trump’s policy shots hit defense and housing-related shares. The Nasdaq ended slightly higher as investors returned to AI, or artificial intelligence, heavyweights including Nvidia and Alphabet. The S&P 500 fell 0.34% to 6,920.93, the Nasdaq rose 0.16% to 23,584.28 and the Dow dropped 0.94% to 48,996.08. (Reuters) The retreat comes with earnings season weeks away and valuations already stretched. The S&P 500 is trading about 22 times expected earnings