US stocks tumble on AI, tech pullback

New York, Nov 4, 2025 (AFP)
Wall Street stocks slumped early Tuesday as shares in tech names including Palantir pulled back while investors digested a slew of earnings reports.
Shortly after trading began, the Dow Jones Industrial Average dropped 0.8 percent to 46,951.24 and the broad-based S&P 500 Index fell 1.1 percent to 6,776.64.
The tech-heavy Nasdaq Composite Index shed 1.5 percent to 23,473.08.
Analysts pointed to "profit-taking" as a possible reason, a situation involving the sale of an asset after its price has risen significantly.
Amid a US government shutdown, there is also no fresh government data to "back up what our assumptions are about economic growth," said Art Hogan of B. Riley Wealth Management.
"When you get to the lofty (valuation) levels that we're at, it's easy to get some vertigo," he added.
Among individual companies, Palantir, the powerful data and AI company with deep ties to US national security bodies, saw its share price slump 8.7 percent in early trading.
This came despite the data analysis and artificial intelligence company releasing quarterly results this week that beat analyst estimates, while issuing better-than-expected fourth quarter guidance.
"The simplest explanation is that there is just a mode of profit-taking this morning," said Patrick O'Hare of Briefing.com.
"What remains to be seen is if there will be a comparably simple approach of letting the opening weakness play out before players step back in to buy the weakness," he added in a note.
O'Hare noted that this has been "a rewarding modus operandi since the April lows, with most of the rewards accruing to the mega-cap stocks and growth stocks."
Meanwhile, all the "Magnificent 7" stocks -- Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla -- slid as trading started.

Sumber : AFP