(Sharecast News) - Major indices headed south on Tuesday as artificial intelligence-related names came under pressure.
At the close, the Dow Jones Industrial Average was down 0.53% at 47,085.24, while the S&P 500 shed 1.17% to 6,771.55 and the Nasdaq Composite saw out the session 2.04% weaker at 23,348.64.

The Dow closed 251.44 points lower on Tuesday, extending losses recorded in the previous session, while the S&P 500 and Nasdaq boked their worst single-day performances in more than three weeks.

Palantir traded lower despite the software company's Wall Street-beating third-quarter earnings overnight, as investors looked to be growing increasingly concerned about valuations in the bull market-leading sector.

Palantir, which was up 173% year-to-date as of Monday's close, was trading at more than 200 times forward earnings and carried a current price-to-earnings ratio approaching 700 heading into Tuesday's session, with the elevated multiples leaving investors to expect to see continued upgrades to profit and revenue guidance to justify further upside.

Oracle, AMD and other AI-exposed names, like Nvidia and Amazon, were all in the red at the close of trading.

Elsewhere, Shopify guided to strong fourth-quarter revenue growth on Tuesday, signaling resilient demand at the e-commerce company, and also reported total third-quarter revenues of $2.84bn, ahead of estimates of $2.76bn.

Uber traded lower after the ridesharing giant's soft underlying earnings guidance overshadowered its solid third-quarter earnings beat, while Pfizer narrowed its full-year earnings guidance after topping quarterly expectatiions, and KFC owner Yum! Brands said quarterly revenues had grown by 8% - slightly more than expected.

After the close, AMD beat profit expectations with its third-quarter numbers, with net income surging 61.2% year-on-year to $1.24bn, while Live Nation reported Q3 earnings and revenues that fell short of estimates on the Street.

Investor sentiment also remained cautious as macro risks continued to weigh on market momentum, including a record-tying US government shutdown and uncertainty over the Federal Reserve's next move.

The shutdown, which wrapped its 35th day on Tuesday, has tied the longest in US history and delayed several key economic data releases, adding to market unease. Attention was also turning to the Fed's December meeting, with investors watching closely for signs of a third consecutive rate cut.

Expectations for lower interest rates have been central to supporting elevated equity valuations and offsetting signs of a slowing economy and softening labour market - any deviation from that path could prompt a reassessment of risk across sectors.







Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Amgen Inc. (AMGN) $297.23 0.31%

Dow Jones - Fallers

Intel Corp. (INTC) $37.05 -6.20%
Cisco Systems Inc. (CSCO) $72.35 -2.83%
Microsoft Corp. (MSFT) $514.81 -0.43%

S&P 500 - Risers

Henry Schein Inc. (HSIC) $71.60 10.77%
Marriott International - Class A (MAR) $272.25 3.17%
Willis Towers Watson Public Limited Company (WTW) $322.90 2.83%
Cincinnati Financial Corp. (CINF) $157.37 2.41%
O'Reilly Automotive Inc. (ORLY) $93.85 2.34%
Verisk Analytics Inc. (VRSK) $220.06 2.16%
J.B. Hunt Transport Services Inc. (JBHT) $172.66 1.71%
Comcast Corp. (CMCSA) $27.44 1.70%
Fifth Third Bancorp (FITB) $42.15 1.48%
Costco Wholesale Corp. (COST) $940.91 1.39%

S&P 500 - Fallers

Micron Technology Inc. (MU) $217.96 -7.13%
Synopsys Inc. (SNPS) $416.49 -6.56%
Qorvo, Inc. (QRVO) $87.54 -6.45%
Nektar Therapeutics (NKTR) $56.12 -6.34%
Intel Corp. (INTC) $37.05 -6.20%
Skyworks Solutions Inc. (SWKS) $71.90 -6.06%
Seagate Technology Plc (STX) $250.36 -5.72%
United Airlines Holdings Inc (UAL) $90.90 -5.42%
American Airlines Group (AAL) $12.65 -5.21%
Microchip Technology Inc. (MCHP) $59.43 -4.77%

Nasdaq 100 - Risers

Henry Schein Inc. (HSIC) $71.59 10.75%
Marriott International - Class A (MAR) $272.25 3.17%
Baidu Inc. (BIDU) $124.99 3.10%
O'Reilly Automotive Inc. (ORLY) $93.83 2.32%
Verisk Analytics Inc. (VRSK) $220.06 2.16%
J.B. Hunt Transport Services Inc. (JBHT) $172.66 1.71%
Comcast Corp. (CMCSA) $27.44 1.70%
T-Mobile Us, Inc. (TMUS) $206.27 1.45%
Costco Wholesale Corp. (COST) $940.74 1.37%
Incyte Corp. (INCY) $102.94 1.35%

Nasdaq 100 - Fallers

Micron Technology Inc. (MU) $217.96 -7.13%
Synopsys Inc. (SNPS) $416.49 -6.56%
Intel Corp. (INTC) $37.05 -6.20%
Skyworks Solutions Inc. (SWKS) $71.90 -6.06%
Seagate Technology Plc (STX) $250.36 -5.72%
Tesla Inc (TSLA) $443.99 -5.21%
American Airlines Group (AAL) $12.65 -5.17%
Qvc Group Inc Series A (QVCGA) $10.34 -4.96%
Microchip Technology Inc. (MCHP) $59.43 -4.77%
QUALCOMM Inc. (QCOM) $172.83 -4.37%

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