Stock Market Jitters: Big Banks Warn of Looming Correction
U.S. stocks fell sharply on Tuesday as concerns over inflated valuations arose, with warnings from major banks about potential market drawdowns. Tech shares particularly suffered, impacting the Nasdaq. Key earnings data from tech companies and comments from Federal Reserve officials are anticipated as potential market influencers.
U.S. stocks plunged on Tuesday as concerns over inflated valuations prompted warnings from major banks about a possible market correction. The S&P 500, Nasdaq, and Dow all closed in negative territory after Morgan Stanley and Goldman Sachs executives hinted at a looming bubble, largely fueled by recent AI market excitement.
Tech shares took the hardest hit on the Nasdaq, especially among the so-called 'Magnificent Seven' AI-linked companies. Investors are closely watching the market reactions to upcoming earnings reports from Advanced Micro Devices and Super Micro Computer for signs of sustained AI-driven growth.
Amidst the stock market jitters, the U.S. government shutdown looms as it nears a record duration, with traders increasingly relying on private data like ADP's employment index. Meanwhile, local elections and Federal Reserve policy developments remain under the spotlight.
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