Overview
- U.S. markets fell sharply Tuesday, with the S&P 500 down about 1.2% and the Nasdaq off roughly 2.0%, as technology led declines and the semiconductor index dropped around 4%.
- Goldman Sachs’ David Solomon and Morgan Stanley’s Ted Pick cautioned that equities could see a 10%–15% pullback, intensifying concern over stretched valuations concentrated in AI leaders.
- Palantir beat quarterly estimates and raised guidance, yet its shares slid about 8% on valuation worries, while Nvidia lost roughly 3.5%, making technology the worst-performing S&P 500 sector.
- Overseas markets followed Wall Street lower, with major European indexes down and Asia opening weaker on Wednesday, including a near 2% drop in South Korea’s Kospi and declines in Japan and Australia.
- The ongoing U.S. government shutdown has delayed key economic reports as investors parse Fed commentary for cues, with earnings from AMD and Super Micro seen as near-term catalysts for sentiment.