US stocks fell Tuesday, pressured by declines in artificial intelligence-related names like Palantir as investors grow increasingly concerned about valuations in the bull market-leading shares.
The Dow Jones Industrial Average lost 419 points, or 0.9%. The S&P 500 dipped 1.2%, while the Nasdaq Composite lost 1.6%.
Palantir shares shed 7% in morning trading even as the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its artificial intelligence business. Palantir sees $1.33 billion in revenue for the current period, higher than the $1.19 billion expected by analysts, according to LSEG. Revenue in the prior quarter jumped 63%.
“Their results were good but markets were disappointed at the lack of company visibility for the whole of 2026,” wrote Deutsche Bank strategist Jim Reid. He also alluded to valuation concerns around Palantir.