AMD and Palantir Stock Crash Drag Nasdaq Index and Dow – Will Support Hold?
Wall Street opened the week under pressure as fading post-Fed optimism, valuation fears, and a renewed Bitcoin decline combined to dampen...
Quick overview
- Wall Street faced pressure as fading optimism post-Fed, valuation concerns, and a Bitcoin decline dampened risk appetite.
- The Nasdaq Composite led declines, falling 2% as major tech stocks experienced widespread selling, with Palantir Technologies plunging 8% despite beating earnings expectations.
- U.S. equities extended their slide amid profit-taking and macroeconomic concerns, with all major indices finishing in the red.
- Advanced Micro Devices reported strong earnings, highlighting resilience in the tech sector despite broader market weakness.
Wall Street opened the week under pressure as fading post-Fed optimism, valuation fears, and a renewed Bitcoin decline combined to dampen risk appetite across markets.
Fed Fallout and Bitcoin Slide Sour Market Mood
Investor sentiment took another hit on Tuesday, with a mix of macroeconomic and market-specific factors driving volatility. The lingering effects of last week’s Federal Reserve meeting, uncertainty surrounding a potential U.S. government shutdown, and concerns about stretched valuations all contributed to the pullback.
Adding to the unease, Bitcoin slipped back below the $100,000 mark, dragging down crypto-related equities and signaling reduced speculative appetite. Analysts noted that after weeks of strong gains, markets were overdue for a consolidation phase as traders reassessed risk exposure.
Tech Selloff Deepens as Palantir Leads Losses
The Nasdaq Composite led Tuesday’s decline, falling 2% from record highs as heavyweight tech names saw widespread selling. While major moving averages remain close below current levels, offering potential technical support, momentum has clearly shifted toward caution. The Dow Jones Industrial Average also slipped, though the 20-day SMA continues to provide near-term support.
Nasdaq Chart Daily – MAs Will Likely Hold
Palantir Technologies (NYSE: PLTR) plunged 8% after reporting earnings, despite beating expectations on several metrics. The drop reflects mounting investor skepticism over Palantir’s lofty valuation, with some analysts suggesting that the stock’s premium pricing leaves little room for disappointment.
Major U.S. Stock Indices Move Lower
U.S. equities extended their slide on Monday as investors rotated out of high-growth tech names amid profit-taking and renewed macroeconomic concerns. The market’s tone was broadly risk-off, with all major benchmarks finishing in the red.
Index Performance Overview
- NASDAQ Composite: ▼ 2.04% — led declines as semiconductor and AI-linked stocks came under heavy selling pressure.
- S&P 500: ▼ 1.17% — pulled lower by weakness in technology and consumer discretionary sectors.
- Dow Jones Industrial Average: ▼ 0.53% — held up better, supported by defensive and energy shares, though still closing in negative territory.
Overall, the day reflected a cautious shift ahead of key inflation data and renewed geopolitical tensions that weighed on market sentiment.
Company-Specific Declines
- Meta Platforms (META): Down for the fourth straight session, shedding roughly 16% since its Q3 earnings release last week, as investors digest weaker guidance and rising cost concerns.
- Palantir Technologies (PLTR): Dropped 7.95%, despite beating earnings expectations, with traders citing valuation concerns and profit-taking after a strong pre-report rally.
- NVIDIA (NVDA): Fell 3.96%, pressured by China export restrictions and broader selling in the AI chip sector.
- Broadcom (AVGO): Declined 2.93%, following a soft session for semiconductors and mixed sentiment around the company’s next earnings cycle.
- Micron Technology (MU): Suffered a steep 7.13% drop, reflecting weakness in the memory chip market and growing worries over near-term pricing trends.
Caution Builds Ahead of Inflation Data and Fed Remarks
Markets are bracing for upcoming CPI data and Federal Reserve commentary later in the week, both of which could shape expectations for interest rates heading into year-end. Traders remain wary that any signs of sticky inflation could rekindle fears of prolonged monetary tightening.
Analysts warn that volatility may remain elevated, especially as geopolitical and policy risks — including U.S.–China trade tensions — continue to cast a shadow over sentiment.
AMD Delivers Strong Earnings Amid Sector Weakness
In contrast to the broader tech pullback, Advanced Micro Devices (NASDAQ: AMD) offered a bright spot. The company reported third-quarter adjusted earnings of $1.20 per share, topping consensus estimates of $1.17. Revenue climbed 16% year-over-year to $9.25 billion, comfortably beating forecasts of $8.74 billion.
Growth was driven by strong data-center and AI chip demand, which helped offset lingering softness in the PC segment. Adjusted operating income rose to $2.24 billion, versus expectations of $2.15 billion, with margins holding steady at 24%, highlighting AMD’s resilience even in a volatile tech environment.
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