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Wall Street indexes end lower, led by decline in Nasdaq

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Traders cautious after recent equities run up

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Bitcoin falls; yields dip

(Updates with AMD shares down after the bell, other details)

By Caroline Valetkevitch

NEW YORK, Nov 4 (Reuters) - Major stock indexes dropped

on Tuesday, with chip stocks lower as the CEOs of Goldman Sachs ( GS )

and Morgan Stanley ( MS ) cautioned that equities could

be heading for a pullback, while the dollar climbed to a

four-month high against the euro.

U.S. Treasuries rose, pushing yields lower, amid a flight to

safety, which also helped to support the dollar.

Cryptocurrency bitcoin fell more than 6%, slipping

below $100,000 for the first time since June.

Bank CEOs warned at an investment summit in Hong Kong of the

prospect of a stock market correction of more than 10% over the

next two years. The comments stoked fears about stretched

valuations and a potential market bubble.

Shares of Nvidia ( NVDA ) were down 4%, while an index of

semiconductors also fell 4%.

Shares of Palantir Technologies ( PLTR ) dropped more than

8% despite the data analytics provider reporting strong

quarterly results. The company, which has more than doubled in

value this year, forecast fourth-quarter results above market

expectations as the rapid adoption of artificial intelligence is

boosting demand for its services.

"Big Short" investor Michael Burry, known for his successful

bets against the U.S. housing market in 2008, has placed bearish

bets on Nvidia ( NVDA ) and Palantir ( PLTR ), according to a regulatory filing on

Monday.

The S&P 500 finished more than 1% lower, and the Nasdaq

dropped more than 2%. The Nasdaq is still up about 21% for the

year so far.

"There's definitely a risk-off tone with a lot of AI stocks

down, and so a little bit of flight to quality with regard to

Treasuries," said Greg Faranello, head of U.S. rates strategy at

AmeriVet Securities in New York.

The Dow Jones Industrial Average fell 251.44 points,

or 0.53%, to 47,085.24, the S&P 500 fell 80.42 points, or

1.17%, to 6,771.55 and the Nasdaq Composite fell 486.09

points, or 2.04%, to 23,348.64.

After the closing bell, shares of Advanced Micro Devices ( AMD )

were down more than 2%, even as the company forecast

fourth-quarter revenue above analysts' estimates. The stock

ended the regular session down 3.7%.

MSCI's gauge of stocks across the globe fell

11.51 points, or 1.14%, to 996.34.

The pan-European STOXX 600 index fell 0.3%.

Optimism about AI deals has been helping stocks. On Monday,

stocks gained following Amazon.com's ( AMZN ) $38 billion cloud

services deal with ChatGPT creator OpenAI.

The U.S. dollar was underpinned in part by reduced bets for

near-term Federal Reserve easing, with divisions within the Fed

raising doubt about the prospect of another rate cut this year.

The Fed lowered rates last week but Chair Jerome Powell said

a December rate cut was not a foregone conclusion. Traders are

betting on a 65% chance of a rate cut in December, compared with

94% a week earlier, CME FedWatch showed.

The euro fell for the fifth straight session, and was

down 0.3% at $1.1483, its weakest since August 1. Against the

yen, the dollar was 0.4% lower at 153.60 yen, though the

Japanese currency remained near a recent 8-1/2-month low.

Sterling tumbled after the UK finance minister pointed to

"hard choices" in her upcoming budget. Sterling fell 0.9%

to $1.3015.

U.S. Treasury yields declined amid the broader risk-off tone

in financial markets.

Because of the U.S. federal government shutdown, a closely

watched monthly jobs report from the Bureau of Labor Statistics

will not be available on Friday, as previously scheduled.

In afternoon trading, the benchmark 10-year yield

was last at 4.089%, about 1.8 basis points lower on

the day.

Oil prices fell as the dollar gained. U.S. crude fell

49 cents to settle at $60.56 a barrel and Brent fell 45

cents to settle at $64.44.

Spot gold fell 1.69% to $3,933.67 an ounce.