U.S. stocks appear to be entering a correction phase. Futures on major indices are down about 1%, reflecting growing uncertainty about the Federal Reserve’s next moves and concerns over stretched stock valuations. The mood worsened after comments from Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick at the Global Financial Leaders’ Investment Conference in Hong Kong, where both warned of a potential market correction exceeding 10% in the next 12 to 24 months. In their view, current valuations require heightened caution.
Amid this environment, $PLTR (-9,73%) shares are down about 4% in pre-market trading despite reporting strong quarterly results. The company’s revenue grew 63% year over year, and management raised its full-year guidance thanks to strong demand for its AIP artificial intelligence platform. The market will be watching $PLTR (-9,73%) closely today as a barometer for overall sentiment in the AI sector.
Investor focus will also be on comments from Federal Reserve officials and corporate earnings announcements. Of particular interest is the speech by Fed Board member Michelle Bowman, known for her hawkish positions. Markets will look for signs of how monetary policy could evolve. Before the opening bell, earnings are expected from $PFE (-1,3%) , $SHOP (-6,91%) , $UBER (-5,86%) , $SPOT (-2,55%) , $ETN (-2,39%) , $UUUU (-3,45%) , and $RACE (+1,59%) . After the close, $AMD (-5,12%) , $SMCI (-15,21%) , $ANET (-13,46%) , $MARA (-7,35%) , and $BYND (-6,3%) will report.
Futures remain under pressure, with risk sentiment tilted negative and volatility elevated. The expected trading range for the S&P 500 is between 6765 and 6890 points, or roughly -1.3% to +0.5% versus Monday’s close.
In stock-specific moves, $HIMS (-9,4%) is up more than 3% in pre-market trading after reporting revenue above estimates, driven by a 21% year-over-year increase in its subscription base. Shares of $NVTS are down nearly 15%, as both revenue and profit missed expectations and the company issued weak guidance for Q4.
$VRTX (+4,19%) is down nearly 4% pre-market despite beating earnings estimates, with investors concerned about weaker-than-expected sales of its key cystic fibrosis drug, Trikafta, and a cautious annual sales outlook. $WMB (-1,48%) is also down more than 3% after earnings came in below forecasts, with higher operating and interest expenses weighing on profits.
On November 3, U.S. markets ended the day mixed. The S&P 500 added 0.17%, the Nasdaq 100 gained 0.44%, while the Dow Jones slipped 0.48% and the Russell 2000 fell 0.33%. The gains were led by members of the “Magnificent Seven,” with $AMZN (-1,27%) jumping 4% after news of a $38 billion contract with OpenAI. Consumer discretionary stocks led the advance, while communication services lagged.
On the macro side, the ISM Manufacturing Index for October came in at 48.7, below expectations of 49.6, marking the eighth straight month of contraction. However, improvements in new orders and employment subindices, combined with easing price pressures, allowed investors to interpret the data as consistent with a “soft landing” scenario.
Still, comments from Fed officials Steven Miran and Lisa Cook, both favoring a continuation of restrictive policy, dampened expectations for a December rate cut.
In corporate news, the biggest M&A headline came from Kimberly-Clark’s $48.7 billion acquisition of KVUE, implying a 46% premium. Shares of KNUE rose 12.3%, but $KBL (-2,15%) fell 14.6% as investors worried about integration risks and the deal’s heavy price tag.
$BYND (-6,3%) sank 16% after the company unexpectedly delayed reporting its quarterly results to November 11, citing the need to reassess non-cash impairments — a move investors viewed as a very negative signal. $IREN (+0,92%) skyrocketed 11.5% following news of a $9.7 billion cloud services contract with Microsoft to support AI infrastructure development. $MU also rose nearly 5% after Samsung delayed new DDR5 memory supply agreements due to demand outstripping supply, which pushed spot memory prices up 25% in a week.
Finally, $IDXX (-0,38%) surged 14.8% after posting stronger-than-expected quarterly results and raising its full-year outlook, with particularly strong performance in its pet diagnostics division.