(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

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Futures down: Dow 0.70%, S&P 500 1.05%, Nasdaq 1.36%

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Spotify ( SPOT ) gains after Q4 profit forecast above estimates

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Shopify, Uber ( UBER ) slip after Q3 results fail to impress

(Updates with earnings)

By Twesha Dikshit and Purvi Agarwal

Nov 4 (Reuters) - U.S. stock futures tumbled on Tuesday

as investors questioned lofty tech valuations after CEOs of top

Wall Street banks Morgan Stanley ( MS ) and Goldman Sachs ( GS )

warned that equity markets could be heading toward a

drawdown.

Wall Street indexes touched all-time highs last week and

notched solid gains for October as quarterly reports from Big

Tech companies signaled surging AI investments, which has been

powering a bull run in U.S. equities this year.

However, doubts over the circular nature of the spending and

monetization of the technology have resurfaced, spurring

investors to pull back after a breakneck rally in AI-related

stocks.

Shares of AI darling Palantir Technologies ( PLTR ) slid

7.3% in premarket trading even as the data analytics company

forecast fourth-quarter revenue above analysts' estimates. The

stock has jumped nearly 400% in the past year.

"It just feels like there's been so much talk that the

market is overbought and there's a lot of overvalued stuff there

that's concentrated in tech," said David Morrison, senior market

analyst at Trade Nation.

Shares of big tech stocks slipped, with Nvidia ( NVDA ) down

2.2%, Alphabet losing 1.8% and Amazon.com ( AMZN ) off

1.6%.

The rally will be under renewed scrutiny with semiconductor

company Advanced Micro Devices ( AMD ) reporting after the bell

on Tuesday and Qualcomm ( QCOM ) later in the week.

Third-quarter earnings have been resilient so far, with more

than 83% companies of the S&P 500 companies that have reported

as of Saturday, beating analyst expectations compared to a

long-term average of 67.2%, according to LSEG data.

At 07:18 a.m. ET, Dow E-minis were down 331 points,

or 0.70%, S&P 500 E-minis were down 72 points, or 1.05%

and Nasdaq 100 E-minis were down 354.5 points, or 1.36%.

The CBOE Volatility Index, Wall Street's fear gauge,

was near a two-week high.

DATA DARKNESS DIMMING DECEMBER HOPES

With the U.S. government shutdown likely to become the

longest ever, private data has found renewed importance for

investors and the Fed alike, with eyes trained on Wednesday's

ADP National Employment numbers.

Recent conflicting commentary from Fed officials has

indicated differing perspectives on how to handle the data gap.

Chicago Fed President Austan Goolsbee said he was on the

fence about cutting rates in December, with inflation still far

above the central bank's target, while Governor Stephen Miran

called the current monetary policy too restrictive.

Traders are now pricing in a 72% chance of a 25-basis-point

rate cut in December, lower than 90% a week earlier, according

to CME Group's FedWatch tool.

Local elections for New York's mayor and governors in New

Jersey and Virginia will also be watched.

Sarepta Therapeutics ( SRPT ) shares slumped 40.8% before the

bell after a trial for its muscle-wasting disease drug missed a

key goal.

Spotify ( SPOT ) gained 3.4% after it forecast

fourth-quarter profit above Wall Street expectations, while

U.S.-listed shares of Shopify and Uber ( UBER ) slid

3.3% and 5.2% respectively after their third-quarter results.

(Reporting by Twesha Dikshit, Purvi Agarwal and Johann M

Cherian in Bengaluru; Editing by Pooja Desai and Arun Koyyur)