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Futures down: Dow 0.6%, S&P 500 1.1%, Nasdaq 1.6%

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Spotify ( SPOT ) gains after forecasting Q4 profit above estimates

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Uber ( UBER ) slides following Q4 adjusted core profit miss

(Updates prices, analyst comment before market open)

By Twesha Dikshit and Purvi Agarwal

Nov 4 (Reuters) -

U.S. stock indexes were on track to open lower on Tuesday

following warnings of a market selloff from leading Wall Street

banks and a

sales forecast

from AI favorite Palantir ( PLTR ) that failed to impress investors.

CEOs of Wall Street heavyweights Morgan Stanley ( MS )

and Goldman Sachs ( GS ) cautioned equity markets could be

heading

for a drawdown

of around 10% to 15%, underscoring growing concerns over

sky-high valuations.

Palantir Technologies' ( PLTR ) shares slid 8.4% 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.

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 powered a

bull run in U.S. equities this year.

However, doubts about the circular nature of the spending

and the technology's monetization have resurfaced, causing

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

stocks.

"The market's been moving higher as warranted from an

earnings standpoint, but at some point... it seemed like it was

kind of positioning for a risk-off pullback even on the

slightest disappointment," said Keith Buchanan, senior portfolio

manager at Globalt Investments, referring to the market pullback

as well as Palantir's ( PLTR ) results.

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

2.2%, Alphabet losing 2.4% and Amazon.com ( AMZN ) off

2%.

The rally will be under renewed scrutiny with semiconductor

company Advanced Micro Devices ( AMD ) and Super Micro Computer ( SMCI )

reporting after the bell on Tuesday.

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

than 83% 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 08:36 a.m., Dow E-minis fell 301 points, or

0.63%, S&P 500 E-minis lost 78.5 points, or 1.14%, and

Nasdaq 100 E-minis shed 402 points, or 1.57%.

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

was near a two-week high.

DATA GAP DIMS DECEMBER RATE-CUT HOPES

With the U.S. government shutdown matching the record for

the longest ever, private data has found renewed importance for

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

National Employment numbers.

Recent conflicting commentary from Fed officials has

indicated differing perspectives on how the central bank will

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.

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

Jersey and Virginia will also be closely tracked.

Sarepta Therapeutics' ( SRPT ) shares slumped 35% before the

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

key goal.

Spotify ( SPOT ) gained 2.8% after it forecast

fourth-quarter profit above Wall Street expectations, while

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

4.3% and 8.5%, respectively, after their third-quarter results.

Harley-Davidson ( HOG ) added 0.6%, while Hertz

jumped 17% after both beat third-quarter revenue estimates.