U.S. stock futures pointed to a slightly lower open on Wednesday, suggesting that Wall Street may extend the previous session’s losses amid renewed unease over stretched valuations and mounting fears of a potential artificial intelligence bubble.
Among early movers, Advanced Micro Devices (NASDAQ:AMD) dropped 2.5% in premarket trading, leading the decline after reporting better-than-expected third-quarter results but offering fourth-quarter margin guidance that merely met market forecasts, dampening investor sentiment.
Super Micro Computer (NASDAQ:SMCI) also slid 7.6% premarket, following fiscal first-quarter results that fell short of expectations, while Arista Networks (NYSE:ANET) retreated sharply despite posting strong beats on both earnings and revenue.
The futures market, however, pared some losses after ADP’s private employment report showed a stronger-than-anticipated rebound in hiring for October. According to ADP, U.S. private sector employment rose by 42,000 jobs last month, following a revised loss of 29,000 in September. Economists had forecast a gain of just 25,000 jobs.
Tuesday’s session saw stocks struggle to sustain early gains, with all major averages finishing in the red. The Nasdaq Composite tumbled 486.09 points, or 2.0%, to 23,348.64, while the S&P 500 lost 80.42 points, or 1.2%, to 6,771.55, and the Dow Jones Industrial Average dropped 251.44 points, or 0.5%, to 47,085.24.
The sell-off reflected growing skepticism about tech valuations, which have fueled market highs this year amid enthusiasm surrounding AI-driven growth.
Palantir Technologies (NASDAQ:PLTR) was a notable laggard, plunging 8%, even after the company beat estimates and raised its revenue outlook.
“It speaks to just how supercharged Palantir’s share price has been in 2025 that even a set of numbers as impressive as those it produced for its third quarter were insufficient to sustain the momentum,” said Dan Coatsworth, head of markets at AJ Bell.
He added, “Even in the context of the booming AI sector, the company’s valuation has reached high levels as investors have seized on its perceived close links with the Trump administration and AI-driven revenue growth.”
Uber Technologies (NYSE:UBER) also fell 5.1%, despite stronger-than-expected third-quarter revenue, while Yum! Brands (NYSE:YUM) gained 7.3% after reporting robust results that exceeded forecasts.
Further weighing on sentiment, Goldman Sachs CEO David Solomon warned investors to brace for a potential correction, saying, “It’s likely there’ll be a 10 to 20 percent drawdown in equity markets sometime in the next 12 to 24 months. Things run, and then they pull back so people can reassess.”
Sector-wise, gold miners led the declines, with the NYSE Arca Gold Bugs Index sinking 4.5%, following a sharp drop in gold prices. Computer hardware stocks also fell steeply, with the NYSE Arca Computer Hardware Index down 4.4% after hitting a record high earlier in the week.
The Philadelphia Semiconductor Index slid 4.0%, while airline, steel, networking, and energy stocks all came under pressure — underscoring the breadth of Tuesday’s market retreat.
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