Wall Street CEOs Give Stock Bulls A Wake-Up Call – US Market Wrap (5th October)

Risky assets fell, with tech stocks and cryptocurrencies leading the way, after a chorus of Wall Street executives warned investors to expect a reversal.
With the advance confined to fewer and fewer shares as mood and technical indicators showed signs of overheating, CEOs from Capital Group to Goldman Sachs and Morgan Stanley saw the likelihood of a downturn as a positive development.

The S&P 500 just posted one of its greatest six-month runs since the 1950s, propelled by Corporate America’s resiliency, the rising prognosis for artificial intelligence, and confidence that the Federal Reserve will continue to slash interest rates to support the economy. However, those robust gains, combined with the recent narrowing of the advance, raised vulnerability concerns.

Palantir fell 8% despite improving its forecast. Following a roughly 400% increase in the previous year, its positive AI prospects were insufficient to outweigh valuation concerns. Adding to the concerns, hedge fund manager Michael Burry revealed bearish bets on the firm and Nvidia.

The S&P 500 index lost 1.2%. A gauge of technology megacaps fell 2.3%. In the late hours. AMD’s revenue projection failed to impress some investors, who had pushed up the stock this year in anticipation of an Al-fueled sales boom.

The yield on 10-year Treasuries fell three basis points, to 4.09%. Bitcoin fell roughly 6%. The dollar achieved its highest level since May.