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Tech Selloff Deepens on AI Valuation Jitters as Record U.S. Shutdown Saps Sentiment

Investors question paying premium multiples for AI names despite solid quarterly reports.

Overview

  • U.S. stock futures pointed lower, with Nasdaq contracts down about 0.4%, S&P 500 off 0.3%, and Dow 0.1% before the open.
  • Palantir fell after record results and a higher outlook, and AMD slipped even after posting record sales linked to data center AI chips.
  • The federal shutdown entered day 36 as the longest on record, affecting roughly 1.4 million workers and raising risks for travel and benefits.
  • U.S. weakness fed global declines, with Seoul and Tokyo among the hardest hit before partial recoveries, while European losses were milder.
  • Bitcoin briefly dropped below $100,000 before rebounding near $102,000, and the 10-year Treasury yield eased to about 4.08% as the dollar steadied.