US Stock Market today: Wall Street tumbles as big bank CEOs sound alarm on tech valuations

US stock indices tumbled on Tuesday, as investors expressed renewed scepticism regarding the high valuations of technology firms, following warnings from the chief executives of top Wall Street banks who forecast a potential market sell-off.

The latest sales forecast from AI favourite Palantir also failed to impress the market.

Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick have warned investors to prepare for a significant equity market correction, generally falling in the range of 10% to 20% over the next 12 to 24 months, with Ted Pick specifically citing a 10% to 15% potential drawdown.

At 11:36 a.m. ET, the Dow Jones Industrial Average fell 161.30 points, or 0.34%, the S&P 500 shed 48.16 points, or 0.70%, and the Nasdaq Composite lost 285.68 points, or 1.20%.

At 09:45 a.m. ET, the Dow Jones Industrial Average fell 301.32 points, or 0.64%, to 47,035.36, the S&P 500 lost 62.20 points, or 0.90%, to 6,790.53 and the Nasdaq Composite lost 291.37 points, or 1.22%, to 23,543.35.

At the open, the Dow Jones Industrial Average fell 188.6 points, or 0.40%, to 47,148.04. The S&P 500 lost 63.4 points, or 0.93%, to 6,788.52, while the Nasdaq Composite dropped 376.5 points, or 1.58%, to 2,3458.211.

Key Stock Movers

Shares of Palantir Technologies tanked 8.7% even as the data analytics company forecast fourth quarter revenue above Wall Street estimates.

Big Tech stocks slipped, with Nvidia falling 2.1%, Alphabet losing 1.6% and Microsoft down 1%.

Tesla shares shed 2.7% after Norway’s sovereign wealth fund, one of the electric car maker’s biggest investors, said it will vote against a proposed compensation package that could pay CEO Elon Musk as much as $1 trillion over a decade.

Among other stocks, Uber tumbled 8.6% after the ride-hailing company missed quarterly operating profit forecast.

Henry Schein shares gained 13.4% after the company raised its annual profit forecast.

Shares of Spotify and US-listed Shopify fell 3.5% and 3.1%, respectively.

Zoetis plunged 13% after the animal health care company cut its yearly sales forecast.

Bullion Market

Gold prices pared earlier losses on Tuesday, finding support from a halt in the US dollar's rally and a dip in Treasury yields.

Spot gold was last down 0.2% at $3,994.47 an ounce by 1210 GMT, after having declined by as much as 0.9% earlier in the session. US December gold futures also slipped 0.2% to $4,004.70 an ounce.

In other metals, spot silver fell 0.6% to trade at $47.80 an ounce, platinum dipped 0.5% to $1,558.25, and palladium declined 2.8% to $1,405.

Crude Oil

Crude oil prices experienced significant declines on Tuesday due to a confluence of bearish factors such as the OPEC+ production decision to pause output hikes in the first quarter of next year, weak global manufacturing data, and a strengthening US dollar.

Brent crude futures fell 81 cents, or 1.25%, to $64.08 a barrel by 1310 GMT. US West Texas Intermediate crude was down 84 cents, or 1.38%, at $60.21.