US open: Stocks lower as AI-linked names come under pressure
By Iain Gilbert
Date: Tuesday 04 Nov 2025
(Sharecast News) - Major indices were firmly in the red at the opening bell on Tuesday as artificial intelligence-related names came under pressure.
As of 1450 GMT, the Dow Jones Industrial Average was down 0.87% at 46,922.87, while the S&P 500 shed 1.16% to 6,772.23 and the Nasdaq Composite came out of the gate 1.59% weaker at 23,456.10.
The Dow opened 413.81 points lower on Tuesday, extending losses recorded in the previous session.
Palantir traded lower in early action despite the software company's Wall Street-beating third-quarter earnings overnight, as investors looked to be growing increasingly concerned about valuations in the bull market-leading sector.
Palantir, which was up 173% year-to-date as of Monday's close, trades at more than 200 times forward earnings and carried a current price-to-earnings ratio approaching 700 heading into Tuesday's session, with the elevated multiples leaving investors to expect to see continued upgrades to profit and revenue guidance to justify further upside.
Oracle, AMD and other AI-exposed names, like Nvidia and Amazon, were all in the red at the open.
Elsewhere, Shopify guided to strong fourth-quarter revenue growth on Tuesday, signaling resilient demand at the e-commerce company, and also reported total third-quarter revenues of $2.84bn, ahead of estimates of $2.76bn.
Uber traded lower after the ridesharing giant's soft underlying earnings guidance overshadowered its solid third-quarter earnings beat, while Pfizer narrowed its full-year earnings guidance after topping quarterly expectatiions, and KFC owner Yum! Brands said quarterly revenues had grown by 8% - slightly more than expected.
Still to come, AMD and Live Nation were scheduled to released their latest quarterly earnings reports after the close.
Investor sentiment also remained cautious as macro risks continued to weigh on market momentum, including a record-tying US government shutdown and uncertainty over the Federal Reserve's next move.
The shutdown, now in its 35th day, has tied the longest in US history and delayed several key economic data releases, adding to market unease. Attention was also turning to the Fed's December meeting, with investors watching closely for signs of a third consecutive rate cut.
Expectations for lower interest rates have been central to supporting elevated equity valuations and offsetting signs of a slowing economy and softening labour market - any deviation from that path could prompt a reassessment of risk across sectors.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Cisco Systems Inc. (CSCO) $74.45 1.83%
Boeing Co. (BA) $204.55 1.76%
Walmart Inc. (WMT) $101.64 0.41%
Salesforce.Com Inc. (CRM) $261.39 0.36%
American Express Co. (AXP) $361.74 0.25%
Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Microsoft Corp. (MSFT) $517.03 -0.15%
Home Depot Inc. (HD) $378.37 -0.33%
Travelers Company Inc. (TRV) $267.66 -0.36%
Dow Jones - Fallers
Merck & Co. Inc. (MRK) $82.49 -4.06%
Nike Inc. (NKE) $62.65 -3.00%
Dow Chemical Co. (DOW) $23.22 -2.60%
3M Co. (MMM) $162.08 -2.59%
Chevron Corp. (CVX) $154.04 -2.33%
Unitedhealth Group Inc. (UNH) $333.79 -2.27%
Procter & Gamble Co. (PG) $147.87 -1.56%
Johnson & Johnson (JNJ) $186.00 -1.38%
Coca-Cola Co. (KO) $67.97 -1.35%
Caterpillar Inc. (CAT) $570.48 -1.16%
S&P 500 - Risers
Henry Schein Inc. (HSIC) $69.56 7.61%
Marriott International - Class A (MAR) $269.51 2.13%
Sba Communications Corp. (SBAC) $197.06 1.83%
J.B. Hunt Transport Services Inc. (JBHT) $172.75 1.77%
Verisk Analytics Inc. (VRSK) $218.49 1.43%
Willis Towers Watson Public Limited Company (WTW) $317.60 1.15%
Incyte Corp. (INCY) $102.71 1.12%
O'Reilly Automotive Inc. (ORLY) $92.41 0.77%
CME Group Inc. (CME) $266.17 0.76%
Cognizant Technology Solutions Corp. (CTSH) $73.17 0.60%
S&P 500 - Fallers
Micron Technology Inc. (MU) $221.98 -5.42%
Intel Corp. (INTC) $37.72 -4.51%
Seagate Technology Plc (STX) $254.26 -4.25%
Nektar Therapeutics (NKTR) $57.77 -3.59%
Wynn Resorts Ltd. (WYNN) $122.41 -2.64%
Cadence Design Systems Inc. (CDNS) $326.59 -2.63%
Synopsys Inc. (SNPS) $434.07 -2.61%
Apache Corp. (APA) $21.92 -2.56%
Illumina Inc. (ILMN) $117.03 -2.47%
NetApp Inc. (NTAP) $114.14 -2.39%
Nasdaq 100 - Risers
Henry Schein Inc. (HSIC) $69.56 7.61%
Marriott International - Class A (MAR) $269.51 2.13%
J.B. Hunt Transport Services Inc. (JBHT) $172.75 1.77%
Verisk Analytics Inc. (VRSK) $218.49 1.43%
Incyte Corp. (INCY) $102.71 1.12%
Baidu Inc. (BIDU) $122.45 1.01%
O'Reilly Automotive Inc. (ORLY) $92.41 0.77%
Cognizant Technology Solutions Corp. (CTSH) $73.17 0.60%
Costco Wholesale Corp. (COST) $932.72 0.50%
Paychex Inc. (PAYX) $115.59 0.42%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $221.98 -5.42%
Intel Corp. (INTC) $37.72 -4.51%
Seagate Technology Plc (STX) $254.26 -4.25%
Tesla Inc (TSLA) $450.23 -3.87%
JD.com, Inc. (JD) $31.69 -3.33%
Wynn Resorts Ltd. (WYNN) $122.41 -2.64%
Cadence Design Systems Inc. (CDNS) $326.59 -2.63%
Synopsys Inc. (SNPS) $434.07 -2.61%
Illumina Inc. (ILMN) $117.03 -2.47%
Skyworks Solutions Inc. (SWKS) $74.79 -2.29%
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