Stocks looked set to slide on Tuesday as investors questioned how long the blistering artificial-intelligence rally can last, despite solid earnings from data analytics software developer Palantir.
Futures tracking the Dow Jones Industrial Average dropped 293 points, or 0.6%. S&P 500 futures fell 1.1%, and contracts tied to the tech-heavy Nasdaq 100 tumbled 1.5%.
The S&P 500 and Nasdaq both rose on Monday, but were on pace to change course even though Palantir topped Wall Street’s earnings and revenue targets for the third quarter. Investors were clearly looking for even more, which makes sense given the shares have surged 173% this year, meaning the stock now trades at more than 300 times future earnings.
