A trader works on the floor of the New York Stock Exchange.
Timothy A. Clary | Afp | Getty Images
Stocks fell on Tuesday, pressured by declines in artificial intelligence-related names like Palantir, as investors grew increasingly concerned about valuations in the bull market-leading shares.
The S&P 500 declined 1.17% to close at 6,771.55, while the Nasdaq Composite traded down 2.04% to finish at 23,348.64. The Dow Jones Industrial Average lost 251.44 points, or 0.53%, to 47,085.24.
Palantir shares shed about 8%, even after the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its AI business. The stock, which has risen more than 150% this year, trades at more than 200 times forward earnings. That means investors in that name and the other AI stocks expect the companies to keep ratcheting up their profit and revenue forecasts by large magnitudes in order to justify investors continuing to buy the shares.
Oracle, which sports a forward P/E of more than 33 moved almost 4% lower, chipping away at its almost 50% gain this year. Chipmaker AMD, which has more than doubled this year, lost nearly 4%. Other AI stocks such as Nvidia and Amazon pulled back as well.
AI stock gains have driven the S&P 500’s forward price-earnings ratio to above 23, near its highest level since 2000, per FactSet. As those stocks have lifted the broader market to new heights in recent months, Anthony Saglimbene of Ameriprise said in an interview with CNBC that without a pullback, valuations are beginning to get “really stretched.”
“We haven’t really seen any major corrections or any real pressure on stocks since April,” the firm’s chief market strategist said. “Profits are good, but I think investors are starting to ask themselves, based on the pace of [capital expenditure] investments from some of these key Big Tech companies, ‘Are you going to see the profit growth over the next year to justify the levels of capex?'”
Comments from chief executives at Goldman Sachs and Morgan Stanley added to the loss of confidence among investors Tuesday. Overnight, Goldman’s David Solomon said it’s “likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months.” Additionally, Morgan Stanley CEO Ted Pick said: “We should also welcome the possibility that there would be drawdowns, 10 to 15% drawdowns that are not driven by some sort of macro cliff effect.”
“Fundamentals are still good, but I would fully expect that you’re going to see a little bit of some periods of pullback,” Saglimbene said. “Whether that leads to a 5% or 10% or 15% correction by the end of the year, we’ll have to see.”
Wall Street is coming off a mixed session, as the S&P 500 and Nasdaq both ended Monday higher, while the Dow fell more than 200 points. More than 300 stocks in the broad-market index closed in the red in the previous session, adding to concerns about weak breadth and high levels of tech concentration — particularly after the number of S&P 500 stocks that gained last month was smaller than the amount that declined.
“Breath in the market has been pretty narrow for the last several months,” Saglimbene added. “If there is a slowing momentum or a near-term downturn in AI or tech, there really [aren’t] other areas that have performed as well, and if we don’t have a lot of clear data on the economy, and profitability across the rest of the S&P 500 isn’t as strong, where do you go?”
Stocks close sharply lower
All the three major averages tumbled on Tuesday.
The S&P 500 and the Nasdaq Composite fell 1.17% and 2.04%, closing at 6,771.55 and 23,348.64, respectively. The Dow Jones Industrial Average dropped 251.44 points, or 0.53%, to settle at 47,085.24.
— Sean Conlon
‘I still recommend Nvidia and Palantir Technologies,’ Louis Navellier says
Investors should be bullish on Palantir and Nvidia even as the stocks come under pressure, according to Louis Navellier, founder and chief investment officer at Navellier & Associates.
“There is fear of an AI correction, and if it comes, it will sweep the rest of the market with it due to the heavy weight of the leading names,” he wrote in a note. “I still recommend Nvidia and Palantir Technologies, and I have no plans of selling them anytime soon.”
— Sean Conlon
Bernstein forecasts a ‘bleak’ holiday season, says to buy WMT and DG on weakness
Shoppers carry bags at Broadway Plaza in Walnut Creek, California, US, on Monday, Dec. 16, 2024. The Bureau of Economic Analysis is scheduled to release personal spending figures on December 20.
David Paul Morris | Bloomberg | Getty Images
With consumer spending waning and SNAP benefits reduced, Bernstein is predicting a weak holiday shopping season this year.
“As the state of the consumer weakens, our outlook is fairly bleak for retail earnings going into Q3,” the firm wrote in a Tuesday note. “Notably, rising inflation continues to weigh on consumer sentiment, with low income consumers being the most squeezed.”
Bernstein pointed to Five Below as a retailer that is most likely to beat expectations in the third quarter, while Target is most likely to miss. The firm also cited Walmart and Dollar General as potential beneficiaries going forward.
“Traditionally when times are tough, Walmart and dollar stores tend to be beneficiaries as middle- to high-income consumers trade down,” Bernstein said. “Should stocks tumble on SNAP uncertainties, we recommend buying WMT and DG on weakness.”
— Lisa Kailai Han
Papa John’s plunges after Reuters reports Apollo has withdrawn its bid
Shares of pizza chain Papa John’s plummeted 12% on Tuesday, after Reuters reported that Apollo Global has withdrawn its offer to take the company private, citing two people familiar with the deal.
PZZA 5D chart
The stock was on pace for its worst one-day plunge since it dropped 22% during the pandemic on March 16, 2020.
Apollo Global had previously offered to take Papa John’s private at $64 a share, Reuters reported. But people familiar with the deal said that the private equity firm pulled its bid about one week ago, pointing to waning consumer spending as a headwind for the chain.
Papa John’s will report its third-quarter earnings before the market opens on Thursday, Nov. 6.
— Lisa Kailai Han
The equal-weighted S&P 500 outperforms
The equal-weighted S&P 500 (RSP) outperformed on Tuesday, down 0.7% while the market cap weighted index was lower by 1%.
Tech stocks, which have an outsized influence on the S&P 500, dragged the index lower. Information technology, consumer discretionary and communication services were the worst-performing sectors in the benchmark.
Financials, consumer staples, real estate and health care were the only sectors trading in positive territory.
RSP, 1-day performance
— Sarah Min
Berkshire Hathaway shares gains more than 2% as investors seek safety
Warren Buffett tours the grounds at the Berkshire Hathaway Annual Shareholders Meeting in Omaha Nebraska.
David A. Grogan | CNBC
Berkshire Hathaway Class A shares climbed 2.6% Tuesday as investors sought safety during the broad market sell-off, drawn to the sprawling holding company’s size and stability.
Warren Buffett’s conglomerate on Saturday reported a 34% jump in operating profit generated from the conglomerate’s wholly owned businesses including insurance and railroads. The gains were driven by a more than 200% surge in insurance underwriting income.
Berkshire shares lag the broader market in the past six month as sentiment shifted back to risk-taking. The stock also pulled back sharply after the announcement that Buffett will step down as CEO at the end of the year.
— Yun Li
SNAP benefits delay could ding consumer spending by 0.5 percentage points, Bank of America says
A resident browses donated food items in the pantry at Feeding South Florida in Pembroke Park, Florida, US, on Friday, Oct. 31, 2025.
Eva Marie Uzcategui | Bloomberg | Getty Images
A delay in food assistance payments to low-income Americans could lower consumer spending in November by as much as half a percentage point, according to Bank of America.
Supplemental Nutrition Assistance Program disbursements were nearly frozen this month due to the ongoing U.S. government shutdown, but a federal court ordered U.S. President Donald Trump’s administration to pay out at least half SNAP beneficiaries monthly allowances usingDepartment of Agriculture contingency funds. However, the disbursements are expected to be delayed, likely hurting consumer spending this month.
“The government noted that there could be substantial delays in the disbursement of funds, so we would still expect an economic headwind in the near term,” the analysts said Tuesday in a note to clients.
— Liz Napolitano
9 stocks in the S&P 500 trade at new 52-week highs
A customer uses an ATM at a Bank of America branch in Boston, Massachusetts.
Brian Snyder | Reuters
On Tuesday, nine stocks in the S&P 500 traded at new 52-week highs.
Tickers that reached this milestone included:
- Las Vegas Sands Corp trading at levels not seen since May 2023
- Bank of Americatrading at levels not seen since February 2007
- Wells Fargo trading at all-time high levels back through our history to 1968
- Incyte Corptrading at levels not seen since July 2020
- Expeditors International trading at levels not seen since January 2022
- Leidos Holdings trading at all-time high levels back to the SAIC IPO in October 2006
- Rollins Inc trading all-time highs back to when it began trading on the NYSE in 1968
- DuPont trading at levels not seen since October 2024
- Ventas trading at levels not seen since September 2019
On the other hand, 13 stocks in the benchmark reached new 52-week lows, including:
- Pool Corptrading at lows not seen since June 2020
- Clorox trading at lows not seen since August 2015
- Kimberly-Clarktrading at lows not seen since June 2018
- Oneok trading at lows not seen since November 2023
- Erie Indemnity Company trading at levels not seen since November 2023
- Factset Research Systemstrading at lows not seen since April 2020
- Fiserv trading at lows not seen since February 2018
- Baxtertrading at lows not seen since December 2004
- Zoetistrading at lows not seen since May 2020
- Eastman Chemicaltrading at lows not seen since April 2020
- International Paper Company trading at lows not seen since May 2024
- Alexandria Real Estate Equitiestrading at lows not seen since November 2009
- Weyerhaeusertrading at lows not seen since July 2020
— Christopher Hayes, Lisa Kailai Han
Norwegian Cruise Line shares on pace for worst day since April
Shares of Norwegian Cruise Line Holdings dropped nearly 14% in midday trading Tuesday, placing the stock on track for its largest percentage decline in a single day since April 3, 2025, when it slid 16.4%.
NCLH, 1-day
This comes after the cruise operator’s third-quarter revenue of $2.94 billion missed the $3.02 billion that analysts surveyed by LSEG had expected.
Shares ofRoyal CaribbeanandCarnivalwere also lower in sympathy, falling more than 5% and about 8%, respectively.
— Sean Conlon
Is AI behind the latest job cuts impacting the economy?
Mathisworks | Digitalvision Vectors | Getty Images
Corporate America is getting rocked by historic rounds ofwhite-collar layoffs, leading some to wonder: Has AI finally come for their jobs?
While the proliferation of generative and agentic artificial intelligence is playing a role, recent job cut announcements from companies likeAmazon,UPSandTargetare about a lot more than just the advance of new technology.
The firms, which each announced layoffs in recent weeks totaling more than 60,000 roles eliminated this year, said they’re trying to cut corporate bloat, streamline operations and adjust to new business models.
But in the absence of the Bureau of Labor Statistics’ monthly jobs report, which hasgone darkamid the government shutdown, the layoff announcements have raised questions about the strength of the labor market and if it’s the start of an AI-driven, white-collar recession.
Some companies have outright said they’re replacing workers with AI.KlarnaCEO Sebastian Siemiatkowski said in May the company was able toshrink its head countby about 40%, in part because of AI.Duolingosaid in April it’ll stop using contractors for work that AI can handle.Salesforcelaid off4,000 customer support rolesin September, saying that AI can do 50% of the work at the company.
But experts interviewed by CNBC said some companies could be”AI-washing”their job cuts, blaming layoffs on the new technology to cover up business fumbles and old-fashioned cost cutting.Read more.
— Gabrielle Fonrouge, Annie Palmer, Frank Holland
Evercore downgrades Kimberly-Clark after Kenvue deal
Evercore ISI has moved to the sidelines on Kimberly-Clark, downgrading the stock to in line from outperform Tuesday.
The firm has several concerns about the consumer products giant’s deal to buy Tylenol-maker Kenvue, including whether Kimberly can turn around businesses it is not competing in today.
In addition, the acquisition is a significant distraction as Kimberly is already in the middle of a multi-year restructuring and a complex divestiture of its international tissue and professional operations into a joint venture with Brazil’s Suzano, analyst Javier Escalante said in a note to clients.
Plus, “[t]he potential Tylenol liability is hard for us and investors to put our arms around and represents headline risks,” he wrote.
“Our preliminary math for C2027-28 EPS doesn’t suggest enough upside relative to standalone Kimberly’s consensus estimates as to provide an attractive risk-reward trade-off,” Suzano said.
Kimberly’s agreement to buy Kenvue, announced Monday, totals $40 billion on an equity basis, excluding the impact of debt.
— Michelle Fox
Alex Karp calls investor Michael Burry ‘bats— crazy’ for bets against Palantir, Nvidia
Palantir co-founder and CEO Alex Karp speaks during the Hill & Valley Forum at the US Capitol Visitor Center Auditorium in Washington, DC, on April 30, 2025.
Brendan Smialowski | Afp | Getty Images
PalantirCEO Alex Karp ranted against short-sellers, calling out specifically Michael Burry after a filing revealed the investor of “The Big Short” fame had bets against the AI software company, as well as Nvidia, at the end of the last quarter.
“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp told CNBC’s”Squawk Box.””The idea that chips and ontology is what you want to short is bats— crazy.”
“He’s actually putting a short on AI… It was us and Nvidia,” Karp added.
When reached via email by CNBC seeking comment on Karp’s remarks, Burry declined to comment. Read more.
— Yun Li, John Melloy
Stocks open in the red Tuesday
Stocks fell on Tuesday morning.
The S&P 500 traded down 1.2% shortly after 9:30 a.m. ET, while the Nasdaq Composite slipped 1.7%. The Dow Jones Industrial Average also pulled back 430 points, or 0.9%.
— Sean Conlon
Stocks making moves premarket
Here are some of the names moving before the opening bell:
- Norwegian Cruise Line Holdings — Shares sank nearly 9% after the cruise operator’s third-quarter revenue of $2.94 billion missed the FactSet consensus estimate of $3.02 billion expected. Royal Caribbean and Carnival fell 3.6% and 4.8%, respectively, in sympathy.
- Sarepta Therapeutics — The biotechnology company tumbled 36% after its late-stage study testing two gene-targeted therapies for Duchenne muscular dystrophy did not meet the main goal.
- Archer-Daniels-Midland — The global agriculture company fell 8% after slashing its adjusted earnings guidance for the full year. However, its third-quarter results topped analyst expectations.
To see more stocks moving in premarket trading, read the full story here.
— Michelle Fox
Spotify jumps after earnings and revenue beat
The Spotify application appears on a smartphone screen in this photo illustration in Athens, Greece, on October 10, 2025.
Nikolas Kokovlis | Nurphoto | Getty Images
Spotify shares popped more than 5% in premarket trading Tuesday after the music streaming service’s earnings and revenue for the third quarter topped Wall Street’s expectations.
The company earned 3.28 in euros per share on revenue of 4.27 billion euros for the period, beating the 1.97 euros per share and 4.23 billion euros that analysts surveyed by LSEG had estimated.
Additionally, total monthly active users gained 11% compared to last year’s period to 713 million. That’s above the 710 million that analysts had expected, per LSEG. The company had also previously forecast 710 million.
SPOT, 1-day
— Sean Conlon
Uber drops despite revenue beat
Omar Marques | Lightrocket | Getty Images
Ubershares fell 4% before the bell even after the ridesharing company beat Wall Street’sthird-quarter revenueexpectations.
“This was our strongest growth since the end of 2023 and the largest trip volume increase in Uber’s history outside the post-Covid rebound,” CEO Dara Khosrowshahi in prepared remarks.
Revenues jumped 20% from $11.2 billion in the year-ago period. Gross bookings increased 21% to $49.74 billion and surpassed the $48.95 billion expected by StreetAccount.
Net income nearly tripled to $6.6 million, or $3.11 per share, from $2.6 billion, or $1.20 per share, in the year-ago period. Adjusted EBITDA rose 33% to about $2.26 billion and was roughly in line with StreetAccount’s estimate. Read more.
UBER, 1-day
— Samantha Subin
Yum Brands shares rise following latest quarterly results
KFC and Taco Bell restaurants along 118th Avenue in Edmonton, on January 21, 2024, in Edmonton, Alberta, Canada.
Artur Widak | Nurphoto | Getty Images
Yum Brandson Tuesday reported quarterlyearningsand revenue growth, fueled by strong demand for Taco Bell and improved U.S. sales for KFC.
The restaurant company also announced plans toreview strategic options for Pizza Hut.The embattled pizza chain has struggled to win over diners in recent years. In its home market, pizza fatigue after pandemic lockdowns have led to slumping sales, and rivals like Domino’s Pizza have stolen share from Pizza Hut.
Yum shares rose 2% in premarket trading. Read more.
YUM, 1-day
— Amelia Lucas
Goldman Sachs, Morgan Stanley warn of a market correction
CEOs from Goldman Sachs and Morgan Stanley warned overnight of a possible market correction ahead.
“It’s likely there’ll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months,” said Goldman Sachs CEO David Solomon at the Global Financial Leaders’ Investment Summit in Hong Kong. “Things run, and then they pull back so people can reassess.”
Ted Pick, Morgan Stanley’s chief executive, note: “We should also welcome the possibility that there would be drawdowns, 10 to 15% drawdowns that are not driven by some sort of macro cliff effect.”
— Lee Ying Shan
Mon, Nov 3 20257:26 PM EST
Starbucks announces joint venture with Boyu Capital to run China business
American multinational chain, Starbucks Coffee, store in Spain.
Xavi Lopez | Lightrocket | Getty Images
Starbuckson Monday said it is forming a joint venture with Boyu Capital to operate the company’s locations in China, leading shares of the coffee chain higher by 0.4% in after-hours trading.
Under the terms of the deal, Boyu, an alternative asset management firm, will pay Starbucks roughly $4 billion to hold up to a 60% interest in the joint venture. Starbucks will hold a 40% stake and maintain its ability to license the brand and intellectual property to the joint venture.
The announcement comes after Starbucks in recent years has seen its sales in China plummet, first due to the pandemic and later caused by increased competition.
— Pia Singh, Amelia Lucas
Mon, Nov 3 20256:11 PM EST
U.S. stock futures open little changed
Mon, Nov 3 20256:13 PM EST
Palantir, Clorox among stocks moving in extended trading Monday
Check out the companies making headlines in after-hours trading.
- Palantir Technologies— Shares ofPalantirrose 1% in extended trading after the software companyreported quarterly results that beat Wall Street’s estimates, with government sales growing 52% from a year ago. Palantir earned 21 cents per share, after adjustments, on revenue of $1.18 billion for the period, while analysts polled by LSEG expected it to earn 17 cents per share on $1.09 billion in revenue. Palantir also gave better-than-expected fourth-quarter guidance as its commercial business, driven by its AI platform, continues to ramp up.
- Vertex Pharmaceuticals— The biotech stock lost 4% after it reported mixed third-quarter results. Vertex earned $4.80 per share, excluding items, on revenue of $3.08 billion. Although the company’s profit came out lower than the $4.58 per share estimate from analysts surveyed by FactSet, revenue beat the $3.06 billion forecast.
- Clorox— Shares of the cleaning products manufacturer rose more than 4% following the company’s first-quarter results. Clorox posted adjusted earnings of 85 cents per share on revenue of $1.43 billion, while analysts surveyed by LSEG had estimated 79 cents per share and revenue of $1.40 billion. The company also reaffirmed its full-year guidance.
For the full list, read here.
— Pia Singh