Dow, Nasdaq Futures Plunge as AI Fairy Tale Loses Luster

Both the Dow and Nasdaq are off triple digits before the bell

Yesterday’s AI surge was short lived, despite Palantir Technologies’ (PLTR) third-quarter earnings beat, as Wall Street grows weary over market-leading valuations. In response, stock futures are looking grim, with the Dow Jones Industrial Average (DJIA) off nearly 300 points. Futures on the tech-heavy Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also deep in the red, after bank executives out of Goldman Sachs (GS) and Morgan Stanley (MS) warned of a possible “10 to 20% drawdown in equity markets” in the next one to two years.

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• Plus, checking in with two pharma giants, and Uber stock’s post-earnings slide.

5 Things You Need to Know Today

1. The Cboe Options Exchange saw 2.6 million call contracts and 1.5 million put contracts exchanged on Monday. The single-session equity put/call ratio rose to 0.58, while the 21-day moving average remained at 0.58.
2. Norwegian Cruise Line Holdings (NYSE:NCLH) stock is off 9.8% ahead of the open, after missing sales estimates for the third quarter. Overshadowing its profit beat, NCLH’s losses will likely deepen its already steep 13% year-to-date deficit.
3. The shares of Uber Technologies Inc (NYSE:UBER) are off 7.7% ahead of the bell, brushing off a third-quarter revenue win after the company lowered its fourth-quarter profit outlook. Despite the pullback, the security is still near its September peak of $101.99. Uber Technologies stock has added 65% since January.
4. Vertex Pharmaceuticals Inc (NYSE:VRTX) stock is 2.8% in the red in electronic trading, also brushing off a quarterly earnings beat. The pharmacy concern saw a 15% jump in revenue, citing demand and pricing for its cystic-fibrosis drugs. Should these losses hold, VRTX will take extend a 9.5% year-over-year deficit.
5. Earnings season is bringing in more big names this week.

Waning Tech Optimism Pressures Asian Markets

Asian bourses finished lower across the board, as tech optimism waned. Japan’s Nikkei shed 1.7%, while South Korea’s Kospi lost 2.4%, with both indexes pulling back from Monday’s records. South Korean President Lee Jae Myung reportedly set aside $7 billion for AI transformation, with the goal of transforming the country into a leading industry power. Hong Kong’s Hang Seng and China’s Shanghai Composite each gave back 0.8% and 0.4%, respectively.

European markets are lower as well. The British pound and bond yields in the U.K. are dropping, after Finance Minister Rachel Reeves said the government faces hard choices ahead of its Nov. 26 budget. London’s FTSE 100 is off by 0.4% at last check, with BP (BP) earnings also in focus. The French CAC 40 and German DAX are both 1.2% lower.