Stock Market Today: Wall Street Slides as Tech Stocks Lead Sell-Off Amid Valuation Worries
US stock markets tumbled as tech stocks led a broad sell-off amid growing fears of overvaluation and warnings of a correction from Wall Street CEOs.
Tech stocks drag Wall Street lower as investors grow cautious over soaring valuations and global uncertainty.
A harsh sell-off in tech stocks caused a large US stock market drop on Tuesday. The announcement of investors' worries over high valuations was the main reason for the sell-off.
The Nasdaq Composite (^IXIC) lost more than 1.7% in value, the S&P 500 (^GSPC) decreased by 1.2%, and the Dow Jones Industrial Average (^DJI) suffered a loss of more than 0.9%, or over 430 points, during the first hours of the trading session.
Tech Stocks Drag Markets Lower
Investor sentiment turned cautious as analysts raised red flags about stretched tech valuations. Palantir (PLTR) shares fell over 6.8% despite strong quarterly earnings, with experts questioning the company’s high price-to-earnings ratio. Similarly, Uber (UBER) shares slipped nearly 7%, even after reporting robust third-quarter results.
Market watchers are now eyeing AMD’s earnings report due later today, with expectations focused on its major AI partnerships. Other companies set to report include Spotify (SPOT), SuperMicro (SMCI), Arista Networks (ANET), BP Plc (BP), and Amgen (AMGN).
Fears of Market Correction
Top Wall Street executives, including Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick, and Capital Group’s Mike Gitlin, have warned investors to brace for a potential correction as overvalued equities adjust to more realistic levels.
Meanwhile, Norway’s sovereign wealth fund announced it will vote against Tesla (TSLA) CEO Elon Musk’s $1 trillion pay package, causing Tesla shares to dip over 3%.
Global & Political Concerns
Adding to market anxiety, the US government shutdown has reached its 35th day, tying the record for the longest in history. The deadlock is delaying key economic reports, including the upcoming jobs data, vital for the Federal Reserve’s monetary decisions.
Oil Prices and Sanctions Impact
On the commodities front, Brent crude prices fell by 1.2%, while West Texas Intermediate (WTI) dropped 1.3%. This comes as US sanctions on Russia begin to take effect, leading to a decline in Russian crude shipments.
In Asia, refiners in India, China, and Turkey, which together account for 95% of Russian oil imports, have reportedly paused purchases, causing a buildup of unsold oil and further market instability.
