Stock market today: S&P 500, Nasdaq futures sink as Wall Street doubts about tech rally cr

November 4, 2025

LIVE Updated 7 mins ago

Updated 1 min read

Tech led a sharp retreat in US stock futures on Tuesday after a mixed session on Wall Street that saw AI optimism in megacap companies drive the S&P 500 and Nasdaq Composite higher.

S&P 500 futures (ES=F) sank 0.9%, while those on the tech-heavy Nasdaq 100 (NQ=F) tumbled roughly 1.3%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, lost 0.6%.

The turnaround comes after AI-heavy tech names fueled gains on Monday. Amazon notched a record close after announcing a new partnership with OpenAI, helping the Nasdaq (^IXIC) advance nearly 0.5%. The S&P 500 (^GSPC) rose roughly 0.2%.

Palantir (PLTR) dropped more than 5% in premarket trading despite the AI-military firm topping third quarter estimates as analysts suggest the stock is overvalued.

Strong Q3 results and elevated AI spending from major cloud players have underpinned investor confidence. But the “Magnificent Seven” tech megacaps, while still market drivers, have delivered uneven performance that has been reflected on Wall Street gauges more broadly.

Looking ahead to the rest of earnings season, another 100-plus reports are due this week. Tuesday is highlighted by AMD (AMD), along with Uber (UBER), Spotify (SPOT) and SuperMicro (SMCI).

Investors are also keeping their eyes on Washington. The US government shutdown continues to delay key economic data, including the jobs report that was slated for release this week.

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Bloomberg reports:

Wall Street chief executives said investors should brace for an equity market drop of more than 10% in the next 12 to 24 months, and that such a correction may be a positive development.

Corporate earnings are strong but “what’s challenging are valuations,” said Mike Gitlin, who helps oversee about $3 trillion as president and chief executive officer of investment manager Capital Group, during a financial summit organized by the Hong Kong Monetary Authority on Tuesday.

On whether stocks are cheap, fair or fully valued, Gitlin said most people “would say we’re somewhere between fair and full, but I don’t think a lot of people would say we’re between cheap and fair,” he said. The same goes for credit spreads, Gitlin added.

His views were echoed by Morgan Stanley CEO Ted Pick and Goldman Sachs Group Inc.’s David Solomon, who also see the possibility of a significant selloff in the coming period and said pullbacks are a normal feature of market cycles.

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Palantir (PLTR) stock dropped over 4% in extended trading after a heated rally despite beating third quarter expectations, as analysts argue the company is overvalued.

Read more here.