The New York Stock Exchange experienced a turbulent session on Tuesday, marked by a return to caution among investors. The S&P 500 fell 1.17% to 6,771.5 points, the Dow Jones fell 0.53% to 47,085.2 points, while the Nasdaq 100, which is more exposed to technology stocks, fell 2.07% to 25,435.7 points.
The nervous markets intensified after further alarmist statements from Wall Street. In early October, Jamie Dimon, CEO of JPMorgan Chase, had already warned that a major correction could occur in the next six to 24 months, citing geopolitical tensions and market overvaluation.
On Tuesday, his counterparts at Morgan Stanley and Goldman Sachs made similar comments, warning of a possible sharp "normalization" of valuations, particularly in the artificial intelligence sector. These warnings were enough to reignite fears of a tech bubble.
The decline was particularly noticeable on the Nasdaq, weighed on by the sharp fall in Palantir Technologies (-7.94%), despite higher-than-expected revenue forecasts. The stock, which has risen by more than 150% over the past year, saw significant profit-taking.
Uber (-5.06%), Spotify (-2.25%), and Shopify (-6.94%) also fell after posting disappointing quarterly results.
At the close, investors were eagerly awaiting the releases from AMD and Super Micro Computer (SMC), two key players in the artificial intelligence segment. AMD unveiled a forecast that was deemed too cautious after a strong start to the year, leading to a decline of around 1% in extended trading. SMC, meanwhile, fell nearly 10% after announcing lower-than-expected quarterly revenues.
On the macroeconomic front, the US government shutdown, a consequence of the budget deadlock in Congress, continues to fuel uncertainty. In the absence of official data, analysts are now turning to private indicators, including the ADP employment index due on Wednesday, to try to assess the health of the US labor market.
