Wall Street took a hit on Tuesday after some of the biggest names in banking sounded the alarm about overheated stock prices. The warnings set off a wave of selling across the major indexes. The Dow slid 0.53%. The S&P 500 dropped 1.17%. The Nasdaq tumbled 2.04%. That’s the worst single-day drop for all three since early October.
Tech stocks really felt the pain. Six out of the “Magnificent Seven” AI heavyweights finished in the red. Chipmakers didn’t escape either—the Philadelphia Semiconductor Index lost 4%. When Goldman Sachs and Morgan Stanley CEOs started talking about a possible correction, investors got even more jittery. It’s been months of big gains, all driven by AI excitement, but now people are getting nervous.
A lot of analysts say stocks just got too expensive, too quickly. And then there’s the government shutdown. It’s dragging into its sixth week, and that’s making things messier. With official economic data stuck in limbo, everyone’s turning to important financial data reports like ADP’s employment survey to figure out what’s really going on.
A few individual names stood out. Palantir sank 8%, even though its outlook was solid. Uber dropped 5% after missing profit targets. On the NYSE, losers outpaced winners by more than two-to-one. Wall Street’s mood has definitely shifted—investors are playing it safe and getting ready for a bumpy ride.
