Wall Street Futures Slide as Valuation Jitters Spark Market Pullback

US stock futures tumbled on Tuesday as investors grew increasingly uneasy about stretched market valuations despite a strong run of corporate earnings. The S&P 500 futures fell 1%, while the tech-heavy Nasdaq 100 dropped 1.3%, and the Dow Jones Industrial Average slipped about 0.7% (roughly 300 points).

The sell-off was led by technology shares, which have been at the center of this year’s rally. Analysts warned that even solid earnings reports may not be enough to justify the lofty price-to-earnings ratios of many high-flying companies. For example, Palantir shares sank more than 5% despite beating quarterly expectations, as skepticism mounted over whether its valuation could be sustained.

Adding to the unease, several major bank executives have cautioned that a market correction may be looming, pointing to the disconnect between stock prices and underlying fundamentals. This comes after a mixed session on Monday, when AI-driven tech names briefly lifted the Nasdaq and S&P 500 to record levels before momentum faded.

The retreat underscores a growing concern on Wall Street: that the tech-driven rally may be running out of steam. While artificial intelligence and cloud computing remain powerful growth themes, investors are beginning to question whether the sector’s rapid gains have outpaced realistic earnings potential.

Looking ahead, traders will be closely watching upcoming economic data and corporate guidance for signs of whether the market can stabilize or if a deeper pullback is on the horizon. For now, the mood has shifted from exuberance to caution, with many bracing for increased volatility in the weeks ahead.

In summary: Futures tied to the Dow, S&P 500, and Nasdaq all fell sharply as valuation concerns overshadowed strong earnings, raising the possibility of a near-term correction in US equities.