Stocks fell on Tuesday, pressured by declines in artificial intelligence-related names like Palantir, as investors grew increasingly concerned about valuations in the bull market-leading shares.
The S&P 500 declined 1.17% to close at 6,771.55, while the Nasdaq Composite traded down 2.04% to finish at 23,348.64. The Dow Jones Industrial Average lost 251.44 points, or 0.53%, to 47,085.24.
Palantir shares shed about 8%, even after the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its AI business. The stock, which has risen more than 150% this year, trades at more than 200 times forward earnings. That means investors in that name and the other AI stocks expect the companies to keep ratcheting up their profit and revenue forecasts by large magnitudes in order to justify investors continuing to buy the shares.
Source: https://www.cnbc.com/2025/11/03/stock-market-today-live-updates.html