"Stocks are opening lower on Wall Street, pulled down by losses in the same big tech companies that have been the main drivers of the market's rally so far this year. The S&P 500 slid 1.2% in the early going Tuesday. The Dow Jones Industrial Average fell 431 points, or 0.8%. The Nasdaq composite sank 1.7%. Palantir Technologies, which had more than doubled so far this year, fell 10% despite reporting results that beat analysts' forecasts. Nvidia also reversed course, falling 2.8%."
"Criticism has been rising that the broad U.S. market, and AI stocks in particular, have become too expensive and could be inflating into a dangerous bubble similar to the 2000 dot-com bust. There is growing concern that the Federal Reserve might not cut interest rates again this year with inflation still above its 2% target. That would have an outsized impact on tech companies because they rely heavily on access to credit to fuel growth."
Stocks opened lower on Wall Street as major technology companies that powered the year's rally pulled back. The S&P 500 slid 1.2% early, the Dow fell 431 points (0.8%), and the Nasdaq dropped 1.7%. Palantir, which had surged this year, plunged after earnings despite beating forecasts, while Nvidia and Amazon also reversed gains. Premarket futures signaled further declines. European and Asian markets were lower and Treasury yields edged down. Investors worry that richly priced AI and broader U.S. equities may be forming a bubble and that the Fed may not cut rates again this year.
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