05:07 PM EST, 11/04/2025 (MT Newswires) -- The Nasdaq Composite declined 2% on Tuesday as concerns around stretched tech valuations weighed on market sentiment.

The Nasdaq registered its biggest one-day drop since Oct. 10, finishing the day at 23,348.6. The S&P 500 fell 1.2% to 6,771.6, while the Dow Jones Industrial Average lost 0.5% to 47,085.2.

Among sectors, technology saw the steepest decline of 2.3%, while financials paced the gainers.

Palantir Technologies ( PLTR ) and Nvidia ( NVDA ) shares fell nearly 8% and 4%, respectively, as a filing showed that investor Michael Burry placed bearish bets on the two tech stocks that have rallied this year on the back of an artificial intelligence-driven boom.

Burry predicted the subprime-mortgage bubble burst that triggered the 2008 financial crisis. The Wall Street Journal reported that his predictions, however, haven't always been right since then.

Investors have bet big on AI names, driving tech valuations higher, though some analysts are concerned that the AI spending boom may be a bubble.

Palantir's ( PLTR ) forward price-to-earnings multiple is above 200, Saxo Bank said in a note published Tuesday.

"That is rare territory in the S&P 500," Saxo Investment Strategist Ruben Dalfovo wrote. "At those levels, even strong quarters can meet cool receptions."

Late Monday, Palantir ( PLTR ) posted stronger-than-expected third-quarter results as the software maker's US sales soared.

Amazon's ( AMZN ) shares dropped 1.8%. Alphabet (GOOG, GOOGL), Meta Platforms ( META ) and Microsoft ( MSFT ) also closed lower.

"Broadly speaking, the third-quarter earnings season has been positive," Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said in a report e-mailed to MT Newswires. "However, expectations for technology firms seem higher, and disappointments appear to be having a disproportionately negative effect."

Tesla (TSLA) shareholder Norges Bank Investment Management has decided to vote against the proposed $1 trillion compensation package for the electric vehicle maker's chief executive, Elon Musk. Tesla slumped 5.2%.

Norwegian Cruise Line ( NCLH ) shares tumbled 15%, the worst performer on the S&P 500. The company issued a downbeat fourth-quarter adjusted earnings outlook following a third-quarter revenue miss.

Uber Technologies' ( UBER ) third-quarter results exceeded market estimates as trips grew by more than 20%, though the ride-hailing company issued a bookings outlook that implied a sequential slowdown in annual growth at the mid-point of the range. The company's shares slid 5.1%.

Yum Brands ( YUM ) shares surged 7.3%, among the top gainers on the S&P 500, after the company said it began exploring strategic options for its Pizza Hut brand, which continued to struggle amid falling comparable sales in the third quarter.

US Treasury yields were lower, with the two-year rate losing 3.5 basis points to 3.58% and the 10-year rate down 2.6 basis points at 4.09%.

The US Senate was once again unable to advance a House-passed continuing resolution to end the government shutdown, which is now into its 35th day, matching the length of the 2018-2019 stoppage, CBS News reported Tuesday.

The US Department of Transportation might have to close "certain parts of the airspace" if the shutdown stretches into next week, CBS News reported, citing Transportation Secretary Sean Duffy.

West Texas Intermediate crude oil was down 1.2% at $60.35 a barrel in Tuesday late-afternoon trade.

The Supreme Court is scheduled to hear arguments Wednesday on whether US President Donald Trump exceeded his authority under the International Emergency Economic Powers Act, or IEEPA, to impose sweeping tariffs.

In an interview with CNBC on Tuesday, Treasury Secretary Scott Bessent expressed confidence that the Trump administration will prevail.

"There are lots of other authorities that can be used, but IEEPA is by far the cleanest, and it gives the US and the president the most negotiating authority," Bessent reportedly said. "The others are more cumbersome, but they can be effective."

Gold was down 1.8% at $3,942.10 per troy ounce, while silver fell 2.6% to $46.83 per ounce.