<figure id="attachment_3034316" aria-describedby="caption-attachment-3034316" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-3034316" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/04/1bbc2c16-wall-street-7.jpg" alt="Wall Street" width="1600" height="1000" /><figcaption id="caption-attachment-3034316" class="wp-caption-text">All three major US indexes slid deep into negative territory after a run of record highs driven by the artificial intelligence boom. (AP pic)</figcaption></figure>
NEW YORK: US stocks closed sharply lower on Tuesday as big banks warned that equity markets could be headed for a drawdown, reflecting mounting concerns over stretched valuations.
All three major US stock indexes slid well into negative territory after the CEOs of Morgan Stanley and Goldman Sachs stoked fears of a potential market bubble, with the S&amp;P 500 having climbed to a series of all-time highs, largely powered by the artificial intelligence boom.
Tech shares weighed particularly heavily on the Nasdaq, with AI-related momentum stocks providing the most drag.
JPMorgan Chase CEO Jamie Dimon warned last month of the heightened risk of a significant stock market correction within the next six months to two years, citing factors including geopolitical tensions.
&#8220;Investors seem a little more worried about valuation than they have in a while, at least today,&#8221; said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
&#8220;A lot of these companies&#8217; valuations were pretty stretched and their earnings were good, but not great,&#8221; Carlson added. &#8220;And that&#8217;s a recipe for profit-taking.&#8221;
The US government shutdown, the result of a congressional impasse, is nearing the record for the longest ever. The resulting dearth of official government data has led to increased scrutiny of private sources such as ADP&#8217;s National Employment report expected Wednesday.
Comments from Federal Reserve officials are being parsed for clues as to how the data-dependent central bank will forge its monetary policy in the absence of crucial economic indicators.
Local elections for New York&#8217;s mayor and governors in New Jersey and Virginia will also be closely tracked.
According to preliminary data, the S&amp;P 500 lost 80.22 points, or 1.17%, to end at 6,772.40 points, while the Nasdaq Composite lost 486.09 points, or 2.04%, to 23,348.64. The Dow Jones Industrial Average fell 252.95 points, or 0.53%, to 47,084.99.
Palantir Technologies slid despite the data analytics company&#8217;s better-than-expected fourth-quarter revenue forecast.
Uber fell in the wake of the ride-hailing platform&#8217;s quarterly profit miss, while Henry Schein advanced after hiking its annual profit forecast.
Spotify and US-listed shares of Shopify both lost ground after their quarterly results.

MatchPoint Times

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