U.S. Stocks Mixed as Tech Shares Struggle on High Valuation Worries
U.S. stock futures traded mixed on Wednesday as investors continued to worry about whether tech stocks are becoming too expensive after months of strong gains.
At 05:55 ET (10:55 GMT), Dow Jones futures were up 28 points (0.1%), while S&P 500 futures dropped 18 points (0.3%) and Nasdaq 100 futures slid 120 points (0.5%).
On Tuesday, the main U.S. indexes closed lower — the S&P 500 lost 1.2%, the Dow Jones Industrial Average fell 0.5%, and the NASDAQ Composite dropped 2% as tech stocks led the decline.
Concerns grew after top Wall Street executives raised red flags about overheated stock prices.
Morgan Stanley CEO Ted Pick said the market could face a correction of 10–15%, calling it a “healthy adjustment” after a long rally fueled by excitement around artificial intelligence.
Goldman Sachs CEO David Solomon also warned that the rapid rise in large-cap tech stocks had created “bubble-like” conditions that may not last without stronger earnings growth.
These comments shook investor confidence, especially in the “Magnificent Seven” — a group of major tech firms that have driven much of this year’s market gains. Their soaring valuations have sparked fears that Wall Street’s tech-driven rally might soon run out of steam.
Market Snapshot:
US500: -1.17%
DJI: -0.53%
NQZ25: -0.48%
IXIC: -2.04%
GS: +0.68%
MCD: +0.96%
MS: +0.22%
AMD: -3.70%
PINS: -2.34%
LCO: +0.14%
CL: +0.13%
Md Golam Rabbani
Asian stocks edged lower on Friday while the U.S. dollar held firm, as investors remained cautious ahead of two key m...
Investors rotated out of technology shares on Thursday, lifting the Dow Jones Industrial Average while dragging down ...
Key Points The Supreme Court on Friday could rule on the legality of President Donald Trump’s tariffs, a ...