US futures traded sharply lower on Tuesday, with contracts on the S&P 500 down 1.1%, the Nasdaq 100 falling 1.4%, and Dow Jones futures slipping more than 400 points. The decline followed a mixed session on Monday, as the recent AI-driven rally showed signs of fatigue and investors digested a fresh batch of corporate earnings. Adding to the cautious mood, several Wall Street chief executives including those from Morgan Stanley and Goldman Sachs, warned at a summit in Hong Kong that markets may be due for a significant correction. Meanwhile, traders readjust their Fed rate cut bets for December, following a series of mixed comments from Fed officials. Palantir Technologies tumbled nearly 8% in premarket trading on valuation concerns, despite beating quarterly estimates and raising its full-year revenue outlook. Vertex Pharmaceuticals dropped 3.8% after posting mixed results. Nvidia shares fell more than 2% in premarket trading, set to erase Monday’s 2.2% gain.
