US stock indexes closed lower on Tuesday, with the S&P 500, Dow Jones, and Nasdaq 100 all down. Palantir Technologies led AI stocks lower despite reporting strong Q3 sales. Valuation concerns and warnings from Wall Street banks sparked a risk-off sentiment. Lower bond yields supported stocks. US vehicle sales slowed, and a rate cut is expected.

The Supreme Court is set to hear arguments on Trump’s reciprocal tariffs. Earnings season continues strong but with slower growth. The US government shutdown persists, impacting the economy. Overseas markets declined. T-note prices rose amid uncertainty over the shutdown’s impact on the economy and potential rate cuts.

European government bond yields fell. ECB members discussed growth risks. Swaps imply a low chance of an ECB rate cut in December. Tesla, Nvidia, and other tech stocks fell. Semiconductor stocks dropped. Crypto stocks tumbled, led by Bitcoin’s decline. Several companies, including Sarepta Therapeutics and Norwegian Cruise Line, reported losses.

Stock gainers included Expeditors International, Henry Schein, and Sanmina. Yum! Brands, Waters Corp, and Fabrinet also rose. Whitestone REIT received acquisition interest. Global Payments and Marriott International reported strong earnings. Earnings reports for various companies are expected on 11/5/2025. No positions were held in mentioned securities.

Read more at Nasdaq: Stocks Finish Sharply Lower on Concerns About Lofty Valuations