"Dow futures are down 301 points. Nasdaq futures are down 344, as the S&P 500 sinks about 70 points. The SPDR S&P 500 ETF Trust ( SPY) is also down about 1%, or by $6.74 this morning. All thanks to a decline in the Palantir ( NASDAQ: PLTR) stock, despite the company beating earnings estimates with solid guidance to boot."
""It's likely there'll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months," said Goldman Sachs CEO David Solomon, as noted by CNBC. "Things run, and then they pull back so people can reassess." In fact, investors may want to prepare as if it were 1929, 2000, or even 2008. That's because today's market is eerily similar."
"Right now, the Dow Jones, the NASDAQ, and the S&P 500 are at all-time highs. All as investor optimism soars, sending valuations to unbelievable, unjustifiable highs. Even with trade war issues, geopolitical tension, and economic issues, investors have shrugged it all off. Unfortunately, they're acting just like investors did before the major crashes of 1929, 2000, and 2008. And unfortunately, it's only a matter of time before it happens again."
Major indices fell from all-time highs as Dow futures dropped 301 points, Nasdaq futures fell 344 points and the S&P 500 lost about 70 points; SPY declined roughly 1% or $6.74. The selloff followed a drop in Palantir stock despite Palantir reporting EPS of $0.21 versus $0.17 estimates and revenue of $1.18 billion versus $1.09 billion estimates. Markets reacted to concerns about Palantir's 200x forward earnings valuation and broader stretched AI-stock valuations. Goldman Sachs and Morgan Stanley CEOs warned a 10–20% equity drawdown could occur within 12–24 months. Current high valuations and investor optimism mirror pre-crash conditions.
Read at 24/7 Wall St.
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