Traders work at the New York Stock Exchange on Nov. 3 2025.
NYSE
Dow futures rose slightly Tuesday night, while futures tied to the tech-heavy Nasdaq slid, as investors continue to grapple with where megacap tech stocks head from here.
Dow Jones Industrial Average futures rose 36 points, or nearly 0.1%. S&P 500 futures fell almost 0.2%, while Nasdaq 100 futures tumbled nearly 0.4%.
Wall Street is coming off a losing session for the major averages. The S&P 500 declined 1.2%, while the Nasdaq Composite dropped 2%. The Dow Jones Industrial Average lost 251 points, or 0.5%.
That comes after Palantir dropped about 8%, even after besting expectations for the third quarter, as investors worried that valuations for the software company — and the broader AI theme — have gotten untenable. After all, Palantir is trading at more than 200 times forward earnings.
Yet many investors remain optimistic that the long-term trend is still favorable for tech stocks, even if there is a near-term pullback, given the strength of spending in AI infrastructure.
“I don’t think that this is concerning today,” Liz Young Thomas, head of investment strategy at SoFi, said on CNBC’s “Closing Bell” on Tuesday. “I do think that as far as we’ve gotten, this extended, is concerning eventually, but I still think that we’re going to run into year end.”
“I still think the chase is on. I still think the large cap love affair is on. And that’s probably not going to change over the longer term period,” she continued. “But today, I think we were looking for an excuse.”
On the economic front, investors will continue to seek clarity using alternative data in lieu of government reports. On Wednesday, the ADP private payrolls report is set to be released. Weekly mortgage applications and ISM services data are also on deck.
Earnings season continues with McDonald’s reporting Wednesday before the open. Of the 360 S&P 500 companies that have reported thus far, roughly 82% have beaten expectations, according to FactSet data. The S&P 500 is set to post a blended growth rate of more than 12%.