Wall Street's primary indexes experienced a sharp downturn, hitting more than a week-long low after chief executives from major U.S. banks issued warnings of an impending market selloff, adding to concerns about inflated tech valuations.

Major figures like Morgan Stanley and Goldman Sachs cautioned about a possible 10% to 15% equity market drawdown, highlighting the issues with high valuations. Palantir's promising sales forecast failed to impress, resulting in a 7.5% stock decline despite substantial 12-month gains.

The technology sector weighed down the S&P 500 significantly. Declines in Big Tech stocks, such as Nvidia, Alphabet, and Microsoft, further reflected investor apprehension about past bull runs and future monetization of AI investments.

See Full Page