U.S. stock futures slipped slightly on Tuesday evening following broad Wall Street losses, as top bank executives issued warnings about a potential market correction amid growing uncertainty surrounding Federal Reserve policy.
S&P 500 Futures dipped 0.2% to 6,789.0, Nasdaq 100 Futures fell 0.4% to 25,487.0, while Dow Jones Futures managed a modest 0.1% gain to 47,252.0 points. During regular trading, the S&P 500 dropped 1.2%, the NASDAQ Composite plunged over 2%, and the Dow Jones Industrial Average fell 0.5%, marking a day of significant declines driven by mounting investor caution.
The pullback came after Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) CEOs raised alarms about overheated valuations and speculative trading, particularly within the technology sector. Morgan Stanley CEO Ted Pick predicted a possible 10%–15% market drawdown, describing it as a necessary correction following months of AI-driven exuberance. Goldman Sachs CEO David Solomon echoed similar sentiments, warning of “bubble-like dynamics” in mega-cap tech stocks that lack solid earnings growth to sustain their valuations.
These comments amplified investor fears that the recent tech-fueled rally—dominated by the “Magnificent Seven” giants—may be nearing a critical point. Concerns about market concentration and overvaluation continue to intensify as several leading tech companies hit record-high market caps.
Adding to market unease, uncertainty over Federal Reserve policy deepened after a prolonged government shutdown delayed key economic data. While some Fed officials hinted at possible rate cuts if inflation cools, others maintained that strong job growth and steady demand warrant continued restrictive measures.
In extended trading, Advanced Micro Devices (NASDAQ:AMD) fell over 3% despite beating profit forecasts after Amazon dissolved its stake. Pinterest (NYSE:PINS) plunged 20% on weak revenue guidance, and Super Micro Computer (NASDAQ:SMCI) dropped 9% amid AI server delivery concerns. Investors now await McDonald’s (NYSE:MCD) earnings report due Wednesday morning.


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