Dow, S&P 500 and Nasdaq futures fall as concerns over frothy valuations run high

ahsan65@gmail.comNovember 4, 2025

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Dow, S&P 500 and Nasdaq futures fall as concerns over frothy valuations run high

Technology led to a sharp decline in U.S. stock futures on Tuesday, as doubts about lofty valuations were fueled by investors sifting through the latest wave of quarterly results.

Futures on the S&P 500 (ES=F) fell 1%, while those on the tech-heavy Nasdaq 100 (NQ=F) fell 1.3%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer technology stocks, fell about 0.7%, or about 300 points.

Wall Street is starting to worry that companies aren’t performing well enough to justify their high stock valuations, prompting CEOs of big banks to signal a likely correction ahead. Palantir (PLTR) shares fell more than 5% despite strong quarterly results, with analysts questioning the stock’s high price-to-earnings ratio.

Skepticism is now setting in about the sustainability of this year’s tech rally, even if earnings look strong. Stocks are retreating from records, after AI-heavy tech names shined in a mixed session Monday to help lift the Nasdaq (^IXIC) and S&P 500 (^GSPC).

Before the bell, Uber (UBER) reported strong results, but shares fell, a sign investors wanted more. Eyes are now on chipmaker AMD’s (AMD) report after the market close, with a focus on its massive AI deals. Spotify (SPOT) and SuperMicro (SMCI) are also on the agenda.

At the same time, Norway’s sovereign wealth fund said it would vote against approving Tesla (TSLA) CEO Elon Musk’s $1 trillion compensation plan, marking critical opposition from one of the electric vehicle maker’s major shareholders.

Investors are also keeping an eye on potential developments in Washington, as the U.S. government shutdown enters its 35th day, tying the record for the longest period in history. The shutdown continues to delay the release of key economic data crucial to the Federal Reserve and Wall Street, including the jobs report scheduled for release this week.

LIVE 8 updates

Good morning. Here’s what’s happening today.

Please note that some government data will not be published due to the closure.

Economic data: JOLTS job offers (September)

Earnings schedule: AMD (AMD), Shopify (SHOP), Uber (UBER), Arista Networks (ANET), Amgen (AMGN), Eaton Corporation (ETN), Pfizer (PFE), BP (BP), Ferrari (RACE), Marriott International (MAR), Apollo Global Management (APO), Thomson Reuters (TRI), Zoetis (ZTS), Marathon Petroleum (MPC), Coupang (CPNG), Axon Enterprises (AXON), Aflac (AFL), Suncor Energy (SU), Exelon (EXC), Yum! Marques (YUM), Live Nation Entertainment (LYV), Supermicro Computer (SMCI), Archer-Daniels-Midland (ADM), Kinross Gold Corporation (KGC), Broadridge Financial Solutions (BR), Leidos (LDOS), Pinterest (PINS), TPG (TPG), Toast (TOST), Global Payments (GPN), Rivian (RIVN), Molson Coors (TAP)

Here are some of the biggest stories you may have missed overnight and early this morning:

Wall Street CEOs Warn: Prepare for a 10% Stock Downturn

Profits reveal technological strength and consumer weakness

Palantir slips as valuation doubts cloud optimistic outlook

Bitcoin Falls Toward $100,000 After Surpassing Key Level

Profits: Pfizer slips, ADM stocks pile up

Amazon’s $38 billion OpenAI deal shows it’s no longer lagging behind AI

Norwegian wealth fund to vote against Musk’s $1 trillion wage plan

Spotify Stock Jumps Amid Strong Results and Talk of Rising Prices

Uber stock falls despite strong third-quarter profits
Norwegian wealth fund to vote against Musk’s $1 trillion Tesla salary plan

Shares of Tesla (TSLA) fell in premarket trading as Norway’s sovereign wealth fund said it would oppose CEO Elon Musk’s proposed $1 trillion wage deal and the electric vehicle maker’s sales in China faltered.

Norges Bank Investment Management’s plan to vote against granting shares to Musk is a setback for his Tesla supporters, given that NBIM is the automaker’s ninth investor, according to Bloomberg.

Reuters reported:

Read more here.
Spotify up after third-quarter profit beats estimates as margins rebound

Spotify (SPOT) stock rose % before the bell Tuesday after the audio giant reported better-than-expected third-quarter results, beating analysts’ revenue and margin estimates alongside user growth.

Yahoo Finance Senior Reporter Allie Canal reports on Spotify’s latest earnings report.

Learn more here.
ADM cuts 2025 earnings outlook due to lower crush margins, shares reservoir

ADM (ADM) stock fell 9% before the bell on Tuesday after cutting its full-year 2025 earnings outlook, after lower crush margins and delays in U.S. biofuels policy weighed on results, sending shares of the grain trader down nearly 9% in premarket trading.

Reuters reports:

Learn more here.
Pre-market trend tickers: Nvidia, MP Materials, Sarepta Therapeutics

NVIDIA (NVDA) The stock fell more than 1% Tuesday in premarket trading. The stock price drop follows news that Microsoft (MSFT) will supply the UAE with Nvidia chips for the first time.

MP materials (MP) The stock fell 3% in premarket trading after President Trump suggested the threat surrounding rare earths was “completely gone.”

Sarepta Therapeutics, Inc. (SRPT) The stock fell 39% before the bell Tuesday after reporting a quarterly loss of $0.13 per share. That compares to earnings of $0.62 per share a year ago.
Denny’s shares soar as breakfast chain reaches take-private deal

Shares of Denny’s soared nearly 50% in premarket trading after the company announced it had agreed to be acquired by a group of investors that would take casual dining from the chain.

Reuters reports:

Read more here.
Wall Street CEOs warn of decline in rich valuations

Bloomberg reports:

Wall Street executives said investors should prepare for a stock market decline of more than 10% over the next 12 to 24 months, and that such a correction could be a positive development.

Corporate profits are strong, but “the problem is valuations,” Mike Gitlin, who helps oversee about $3 trillion as chairman and chief executive of investment manager Capital Group, said at a financial summit hosted by the Hong Kong Monetary Authority on Tuesday.

As for whether stocks are cheap, fair or fully valued, Gitlin said most people “would say we’re between fair and full, but I don’t think many people would say we’re between cheap and fair,” he said. The same goes for credit spreads, Gitlin added.

His views were echoed by Morgan Stanley CEO Ted Pick and Goldman Sachs Group Inc. David Solomon, who also see the possibility of a selloff in the period ahead and said pullbacks are a normal feature of market cycles.

Read more here.
Palantir Stock Falls After Hours Despite Positive Earnings Report

Palantir (PLTR) stock fell more than 4% in extended trading after a rocky rally despite beating third-quarter expectations, with analysts saying the company is overvalued.

Learn more here.