A few minutes after opening, the broad S&P 500 index fell 1.1 percent, the Nasdaq's technology-heavy composite index fell 1.5 percent and the Dow Jones industrial average fell 0.8 percent.
AI-related stocks, which have driven the gains this year, are particularly falling. Most of the major technology companies have reported third-quarter results in recent weeks.
“Their results were good but markets were disappointed by the lack of corporate initiatives throughout 2026,” writes Jim Reid, strategist at Deutsche Bank, in an analysis according to CNBC.
The S&P 500 has risen 16.5 percent so far this year, but investors are reportedly increasingly concerned that valuations for leading stocks have skyrocketed beyond reason.
AI software company Palantir – which beat expectations in its quarterly report after the stock market closed on Monday – fell 6.7 percent in early trading on Tuesday.
