Tech Stocks Tumble Amid Valuation Concerns and AI Hypes

U.S. stock futures dipped on Tuesday, driven by growing unease over technology sector valuations. Recent warnings from influential Wall Street banks and a lacklustre sales forecast from AI-focused Palantir contributed to investor caution.

CEOs from Goldman Sachs and Morgan Stanley flagged potential risks of a significant stock market correction of over 10% in the coming years. Despite Palantir's optimistic fourth-quarter revenue projections, its shares fell in premarket trading, reflecting a broader hesitance towards AI-related investments.

While Wall Street indices reached record highs last week, investor concerns linger about the sustainability of AI-driven economic growth. Upcoming earnings reports from key players like Advanced Micro Devices and Qualcomm, along with important employment data, will likely influence market sentiment amid ongoing U.S. economic uncertainties.