Wall Street extended losses by midday Tuesday, joining a global equity sell-off as investors reassessed stretched valuations and the outlook for U.S. interest rates.
The S&P 500 was down 1.3% at 6,760, the Nasdaq Composite fell 1.5% to 23,545, and the Dow Jones Industrial Average dropped 0.9% to 40,480, with declines broad-based across most sectors.
Technology and consumer discretionary stocks led the retreat following months of strong gains. Palantir Technologies plunged over 9% despite posting better-than-expected third-quarter results and raising its full-year revenue forecast, as investors took profits after a sharp run-up in its share price.
Tesla shares slid 4% after Norway’s sovereign wealth fund, the world’s largest, said it will vote against CEO Elon Musk’s proposed $1 trillion (£765 billion) pay package at Thursday’s annual shareholder meeting. The fund, which owns a $17 billion stake in Tesla, cited concerns about “the total size of the award, dilution, and lack of mitigation of key person risk.”
The warning came just two days before the crucial vote, which could see Musk become the first trillionaire if approved.
Meanwhile, Treasury yields ticked lower, with the 10-year note easing to 4.23%, reflecting modest demand for haven assets. Oil prices held steady, while gold edged higher as risk appetite waned.
Analysts said the pullback was overdue after an extended run-up led by artificial intelligence and large-cap tech stocks. “We’re seeing classic risk fatigue,” said one trader in New York. “Valuations got ahead of earnings reality, and investors are rotating into defensives.”
