Wall Street Faces Turbulence Amid Big Tech Selloff

Wall Street's key indexes tumbled to their lowest in over a week on Tuesday, driven by cautionary signals from major U.S. banks about a looming market selloff. Despite an optimistic sales forecast, AI darling Palantir failed to excite investors, leading to an 8.7% drop in its share price.

Notable figures, including CEOs from Morgan Stanley and Goldman Sachs, flagged the possibility of a 10% to 15% market correction, highlighting concerns about exceedingly high stock valuations. Concurrently, big tech shares witnessed declines; Nvidia fell 2.1%, Alphabet dipped 1.6%, and Microsoft decreased by 1%.

The downturn saw significant impacts on the major indexes. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite faced considerable losses as fears about the sustainability of AI-related investments resurfaced amid a historic bull run in equities.