U.S. stock futures tumbled on Tuesday as investors questioned lofty valuations in the technology sector after top Wall Street banks warned of a stock market selloff and AI darling Palantir's sales forecast failed to lift the mood.

Market Snapshot

At 7:50 a.m. ET, Dow E-minis fell 289 points, or 0.61%, S&P 500 E-minis shed 67.5 points, or 0.98%, and Nasdaq 100 E-minis lost 341 points, or 1.31%.

Pre-Market Movers

Palantir - Palantir Technologies' shares slid 7.7% in premarket trading even as the data analytics company forecast fourth-quarter revenue above analysts' estimates. The stock has jumped nearly 400% in the past year.

Tesla - Tesla declined 2.6% after Norway’s sovereign-wealth fund rejected Tesla CEO Elon Musk’s new $1 trillion pay package. The fund was the first major investor to disclose its decision, The Wall Street Journal reported.

Amazon - Amazon.com slid 1.7% ahead of the opening bell. The stock closed at a record high Monday of $254 on Monday, rising 4% after Amazon reached a$38 billion agreementfor its cloud-computing arm, Amazon Web Services, to provide infrastructure for ChatGPT maker OpenAI’s artificial-intelligence workloads. The partnership covers the next seven years.

Grab - Grab shares sank 5.1% in premarket trading. The company beat analysts' expectations for third-quarter revenue, raised the lower end of its annual revenue forecast to $3.38 billion from $3.33 billion. Third-quarter revenue for Grab's deliveries segment stood at $465 million, compared with estimates of $470 million.

Hims & Hers Health beat Wall Street estimates for third-quarter revenue on Monday, as the telehealth company added subscribers and expanded its personalized healthcare offerings. Hims & Hers said it was in active talks with Novo to offer Wegovy injections and, once approved, an oral version through its platform. The shares gained 2% in premarket trading on Tuesday.

Sarepta Therapeutics - Sarepta Therapeutics plummeted 35% after the biotechnology company disclosed disappointing drug-trial data for treatments for Duchenne muscular dystrophy that could lengthen the timeline of the regulatory approval process. The data overshadowed a narrower-than-expected third-quarter loss.

Spotify - Spotify forecast fourth-quarter profit above Wall Street expectations on Tuesday, betting on robust user growth and a boost from price hikes in the crucial holiday season. Shares of the company rose 5.2% in premarket trading.

Pfizer - Pfizer on Tuesday raised its full-year profit forecast for the second quarter in a row as robust demand for its blockbuster blood thinner helped it post third-quarter earnings above expectations. The shares fell 0.8% in premarket trading.

Uber - Uber shares fell 4.6% in premarket trading after the company forecast current-quarter adjusted core profit of between $2.41 billion and $2.51 billion, marginally below expectations of $2.48 billion.

Shopify - Shopify projected strong fourth-quarter revenue growth on Tuesday, signaling resilient demand at the e-commerce company as retailers gear up for the all-important holiday shopping season. However, U.S.-listed shares of the Ontario, Canada-based company were down 3.4% in premarket trading.

Norwegian Cruise Line - Norwegian Cruise Line Holdings missed third-quarter revenue expectations on Tuesday on subdued consumer appetite for sea-based vacations following years of strength. Shares of the company fell 8.3% in premarket trading.

Ferrari - Luxury sports-car maker Ferrari on Tuesday posted a larger-than-expected 5% increase in third-quarter core earnings, thanks to its strong pricing power supported by models in the SF90 XX and 12Cilindri lines. The shares rose 2.3% in premarket trading.

Denny's - Restaurant chain Denny's announced on Monday it would be acquired by a group comprising TGI Fridays-owner TriArtisan Capital Advisors in a $620 million deal, including debt. Denny's shares surged 50% in premarket trading on Tuesday.

Energy Fuels - Energy Fuels reported quarterly losses of seven cents per share, which missed the Street estimate for losses of six cents. The shares sank 10.7% in premarket trading.

Navitas Semiconductor - Navitas Semiconductor shares tumbled 16.5% in premarket trading on Tuesday after the next-generation power semiconductor company reported third-quarter results that missed analyst expectations and announced a strategic pivot away from consumer markets.

iHeartMedia - Netflix is in talks to license video podcasts distributed by iHeartMedia Inc. as it looks to compete head on with YouTube, Bloomberg reported. iHeartMedia shares soared 30.6% in premarket trading.

Exact Sciences - Exact Sciences shares jumped 9.7% in premarket trading on Tuesday after the cancer screening provider reported third-quarter results that exceeded analyst expectations and raised its full-year outlook.

Baidu - Baidu shares rose 2.3% in premarket trading on Tuesday. The rally follows reports that Baidu is accelerating its global autonomous ride-hailing business. As of October 31, its Apollo Go division recorded over 250,000 weekly fully driverless ride-hailing orders—a scale comparable to Waymo’s paid ride volume in the U.S. as of late April this year.

Vertex Pharmaceuticals - Vertex Pharmaceuticals reported third-quarter adjusted profit of $4.80 a share as revenue gained 11% to $3.08 billion. Both metrics topped analysts’ forecasts. Revenue jumped 15% in the U.S., getting a lift from strong demand and higher pricing for Vertex’s cystic-fibrosis drugs. The stock, however, fell 4%.

Sanmina - Sanmina jumped 10% after the manufacturing services provider issued earnings and revenue guidance for its current fiscal first quarter that was better than analysts’ estimates.

Fabrinet - Fabrinet, which makes certain optical cables for Nvidia, jumped 5% after fiscal first-quarter earnings beat Wall Street estimates and adjusted earnings and revenue guidance for the second quarter also topped forecasts.

Clorox - Clorox beat fiscal first-quarter adjusted earnings expectations and maintained that its guidance for fiscal 2026 sales would decline between 6% to 10%. Shares of the cleaning-products company rose 2.5%.

Market News

Michael Burry Challenges the AI Trade with Big Short Bets on Nvidia and Palantir

Michael Burry, hedge fund manager of “The Big Short” fame, is calling the top in two of the stock market’s favorite plays — and somewhat contradicting himself in the process.

Burry's Scion Asset Management has bought put options covering 5 million shares of Palantir, a trade valued at about $912 million, and puts for 1 million shares of Nvidia, valued at about $187 million, a regulatory filing for the quarter ending Sept. 30 shows.

Equity put options allow the purchaser to buy a stock at a lower level, the strike price, by a specified time, the expiry date. Such positions are usually taken if the buyer expects the stock price to fall.

Norway Wealth Fund to Vote No on Musk $1 Trillion Tesla Pay Package

Norway's sovereign wealth fund, the world's largest, said on Tuesday it would vote against ratifying Tesla CEO Elon Musk's proposed compensation package, containing shares worth up to $1 trillion, at an annual general meeting this week.

Investors in the electric-vehicle maker will decide on November 6 whether to approve the package, likely the largest-ever CEO compensation agreement, which critics have called excessive.

So far, the Norwegian wealth fund is the largest outside Tesla investor to say how it plans to vote. The next-largest to do so, Baron Capital, on Monday said it would back Musk's pay package.

Goldman, Morgan Stanley CEOs Warn of Equity Markets Heading Towards Correction

Chief executives of Morgan Stanley and Goldman Sachs cautioned on Tuesday that the global equity markets could be heading towards a correction, underscoring a growing concern that investor optimism has driven valuations to sky-high levels.

Fears of a market bubble come as the benchmark S&P 500 continues its meteoric climb, repeatedly hitting record highs and evoking memories of the dot-com boom.

"We should welcome the possibility that there would be drawdowns, 10% to 15%, that are not driven by some sort of macro cliff effect," Morgan Stanley CEO Ted Pick said at the Global Financial Leaders' Investment Summit in Hong Kong.