04.11.202514:39:41UTC+00US Stocks Fall Sharply

U.S. stocks experienced significant declines on Tuesday, with the S&P 500 dropping 1.1%, the Nasdaq decreasing by 1.7%, and the Dow Jones falling over 400 points. This downturn follows an AI-driven rally that is starting to show signs of slowing, while investors are processing the latest wave of corporate earnings reports. Contributing to the cautious sentiment, several top Wall Street executives, including those from Morgan Stanley and Goldman Sachs, cautioned at a Hong Kong summit that the markets may be poised for a notable correction. Meanwhile, traders are reconsidering their predictions for a Federal Reserve rate cut in December, in light of mixed signals from Fed officials. The technology, energy, and industrial sectors were the day's weakest performers, while consumer staples managed to post gains. Despite surpassing quarterly estimates and increasing its full-year revenue forecast, Palantir Technologies' shares plunged nearly 10% due to concerns over its valuation. Nvidia's stock fell 2.7%, Tesla's declined by 4.2%, and AMD saw a drop of 3.6% ahead of its earnings announcement slated for after the market close.