Stock market today: S&P 500, Nasdaq futures tumble ahead of earnings rush as valuation wor

November 4, 2025

LIVE Updated 32 mins ago

Updated 1 min read

Tech led a sharp pullback in US stock futures on Tuesday as doubts about the AI-fueled rally crept in and investors waited for the next rush of quarterly earnings.

S&P 500 futures (ES=F) sank 1.3%, while those on the tech-heavy Nasdaq 100 (NQ=F) tumbled 1.6%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, pulled back roughly 1%, or around 480 points.

Losses on Wall Street are deepening before the bell as skepticism seeps in about stock valuations even as this season’s earnings come in strong. Despite a third quarter earnings beat, shares of Palantir (PLTR) shares dropped more than 5% as analysts suggested the AI-focused company’s valuation is overinflated.

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

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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Shares of Denny’s shot up nearly 50% in premarket trading after the company said it has agreed to be bought by a group of investors that will take the casual dining chain private.

Reuters reports:

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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.

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