U.S. stocks tumbled on Tuesday as investor confidence faltered following stark warnings from top Wall Street executives about stretched technology valuations.
Goldman Sachs CEO David Solomon and Morgan Stanley’s Ted Pick both cautioned that equity markets could face a 10%–20% correction over the next 12 to 24 months, with Pick highlighting a possible 10%–15% drawdown amid overheated tech valuations and slowing growth.
Adding to the pressure, AI-focused software company Palantir Technologies disappointed investors despite forecasting fourth-quarter revenue above Wall Street estimates.
Market Snapshot
At 11:36 a.m. ET, the Dow Jones Industrial Average dropped 161.30 points (0.34%), the S&P 500 declined 48.16 points (0.70%), and the Nasdaq Composite plunged 285.68 points (1.20%).
Earlier in the session, the indices had fallen more sharply, with the Nasdaq losing over 1.5% at the open before paring some losses.
Key Stock Movers
Palantir Technologies (PLTR): ↓ 8.7% after its sales outlook failed to meet high investor expectations.
Nvidia (NVDA): ↓ 2.1%
Alphabet (GOOGL): ↓ 1.6%
Microsoft (MSFT): ↓ 1.0%
Tesla (TSLA): ↓ 2.7% after Norway’s sovereign wealth fund—one of its largest shareholders—announced plans to vote against a proposed compensation package for CEO Elon Musk that could reach $1 trillion over ten years.
