U.S. Stocks Plummet Amid Fears of Market Valuation Bubble

U.S. stocks experienced a significant downturn on Tuesday after major financial institutions raised alarms about potential valuation bubbles in equity markets. Concerns were fueled by the S&P 500's climb to record highs powered by artificial intelligence gains.

The CEOs of Morgan Stanley and Goldman Sachs contributed to fears of an impending market correction, with tech shares taking a particularly hard hit on the Nasdaq. JPMorgan Chase's CEO highlighted geopolitical tensions as a factor exacerbating market risks.

Adding to the market volatility, the U.S. government's extended shutdown created uncertainty over economic data availability, leading investors to scrutinize private reports closely. Meanwhile, regional elections in New York, New Jersey, and Virginia added to the political landscape's complexity.