U.S. stock futures pointed to a sharply lower open on Tuesday, signaling a pullback after a mixed start to the week as traders reacted to disappointing data, cautious remarks from Federal Reserve officials, and a steep selloff in one of the market’s most-watched tech names.

Palantir Technologies (NASDAQ:PLTR) led premarket declines, plunging 8.2% despite delivering stronger-than-expected quarterly results and raising its revenue outlook. The move highlights renewed concerns that the company’s valuation may have outpaced its fundamentals.

“It speaks to just how supercharged Palantir’s share price has been in 2025 that even a set of numbers as impressive as those it produced for its third quarter were insufficient to sustain the momentum,” said Dan Coatsworth, head of markets at AJ Bell.

He continued, “Even in the context of the booming AI sector, the company’s valuation has reached high levels as investors have seized on its perceived close links with the Trump administration and AI-driven revenue growth.”

Uber Technologies (NYSE:UBER) also slipped in early trading, even after reporting third-quarter revenue that exceeded expectations, while Spotify Technology (NYSE:SPOT) gained after the streaming platform posted better-than-forecast sales.

Market sentiment was further dampened by comments from Goldman Sachs CEO David Solomon, who warned of a potential 10% to 20% correction in equities within the next two years.
“Things run, and then they pull back so people can reassess,” Solomon said at the Global Financial Leaders’ Investment Summit in Hong Kong.

The previous session closed mixed: the Nasdaq and S&P 500 extended gains, while the Dow Jones Industrial Average slipped 0.5% to 47,336.68.

The tech-heavy Nasdaq was buoyed by Amazon (NASDAQ:AMZN), which surged 4% to a record high after announcing a $38 billion partnership with OpenAI to support AI workloads on Amazon Web Services.

Nvidia (NASDAQ:NVDA) also rose 2.2%, as Microsoft (NASDAQ:MSFT) confirmed it had received export licenses from the Trump administration to ship Nvidia chips to the United Arab Emirates.

However, the Dow was held back by a 4.1% drop in Merck (NYSE:MRK), along with losses in Nike (NYSE:NKE), 3M (NYSE:MMM) and Chevron (NYSE:CVX).

Traders were cautious ahead of Wednesday’s ADP private-sector employment report, one of the few economic indicators still being released amid the ongoing government shutdown, which could offer clues about labor market resilience and rate expectations.

Meanwhile, the Institute for Supply Management said that U.S. manufacturing contracted more than forecast in October, with its PMI slipping to 48.7 from 49.1 in September.

Energy stocks outperformed, with the Philadelphia Oil Service Index up 2.2% as crude oil prices rose modestly. Retail and hardware names also gained ground, while housing stocks lagged behind.

Palantir Technologies stock price

Uber Technologies stock price

Spotify stock price

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