Stocks fell Tuesday after Wall Street sounded the alarm about a market selloff amid growing concerns over inflated tech valuations.
The CEOs of Goldman Sachs and Morgan Stanley warned the market is due for a slide as investors question the sustainability of the AI boom. Those concerns showed up in Palantir’s stock price Tuesday, which fell even after the software company increased its revenue forecast on the back of its growing AI business. “Bullish AI prospects weren’t enough to offset concerns about the company’s lofty valuation,” Bloomberg wrote.
One investment strategist downplayed the “scary” headlines but acknowledged that “when investors worry, they sell.”