Tech Stocks Drag Markets Lower Amid Valuation Concerns
U.S. equities retreated at midday as Palantir Technologies led a tech sector selloff despite posting record quarterly results. The AI software firm's shares tumbled over valuation worries, dragging the Nasdaq lower alongside the S&P 500 and Dow Jones Industrial Average.
In contrasting moves, Denny's shares surged 35% on its $620 million acquisition deal, while Sarepta Therapeutics plummeted after clinical trial disappointments. Uber Technologies weighed on the S&P 500 after issuing cautious earnings guidance.
The market's bifurcated action highlights growing investor selectivity amid stretched valuations in growth sectors. 'When AI leaders fail to rally on blowout earnings, it signals exhaustion in crowded trades,' noted Wedbush analyst Dan Ives.
