Overview
- The Dow, S&P 500, and Nasdaq fell to more-than-a-week lows on Tuesday as investors reassessed stretched pricing across major benchmarks.
- Palantir shares sank after its latest quarter failed to satisfy lofty expectations despite higher revenue guidance, reinforcing concern about AI-heavy valuations.
- Telefónica tumbled as much as 9%–11% after reporting a steep profit decline and announcing it will halve the dividend on 2026 results, dragging Spain’s Ibex 35 below 16,000 at the open.
- The ISM manufacturing PMI slipped to 48.7 in October, signaling contraction, while a prolonged U.S. government shutdown has curtailed key data and left Fed policy signals split between officials.
- Top executives at Morgan Stanley, Goldman Sachs, and Capital Group warned a correction exceeding 10% is possible in the next 12–24 months, and some investors such as Michael Burry have bought puts on AI leaders including Nvidia and Palantir.