Stock Turmoil: CEOs Warn of Potential Market Correction

Major U.S. stock indexes experienced declines on Tuesday as industry titans at Goldman Sachs and Morgan Stanley voiced concerns over a pending market correction. Their cautionary remarks coincided with a dip in semiconductor stocks, with Nvidia and Palantir Technologies seeing their shares tumble despite robust financial results from the latter.

The dollar surged to a four-month high against the euro due to waning expectations for impending Federal Reserve rate cuts, contrary to earlier predictions. Wall Street investor Michael Burry placed bearish bets against Nvidia and Palantir, even as Nasdaq suffered a 1% drop but remained up 22% for the year.

Analysts warned of a potential 10% market correction within two years, exacerbated by the finance sector's risk-off sentiment. U.S. Treasury yields dipped, underpinning the dollar's strength. Global stocks also slid, reflecting concerns about economic stability and future interest rate decisions.