US EditionFresh Warning to a $200 Billion Industry Loaded with Danger
Executives from Capital Group, Goldman Sachs, and Morgan Stanley cite nearly 40% market surge as reason to expect a healthy correction amid high tech stock valuations.
- On November 4, 2025, a chorus of Wall Street executives warned investors to brace for a pullback amid lofty valuations, Bloomberg reported the same day.
- Following an almost 40% surge from April's nadir, valuations rose to past exuberance levels amid heavy tech megacaps and artificial intelligence gains, leaving investors uneasy despite the S&P 500's resilience.
- Palantir's share move illustrates the point as Palantir Technologies Inc. tumbled 7.5% despite raising its revenue outlook, while hedge fund manager Michael Burry disclosed bearish wagers on Palantir and Nvidia Corp.
- The S&P 500 fell as much as 1.2% before paring losses, while a flight-to-quality pushed the 10-year Treasury yield down two basis points to 4.09%, analysts at BMO Capital Markets noted.
- BMO strategists signalled sympathy for consolidation, while Goldman Sachs expects commodity trading advisors to be small sellers after $1.2 billion of disposals last week.
11 Articles
11 Articles
Stocks Halt Rally as Wall Street CEOs Sound Alarm: Markets Wrap
(Bloomberg) -- A chorus of Wall Street executives warning investors to brace for a pullback amid lofty valuations triggered a slide in stocks amid worries about whether the market has run ahead of itself. Bitcoin sank. Bonds rose.
Profit-taking: The DAX and Nasdaq are declining. The heads of Wall Street giants Goldman Sachs and Morgan Stanley are warning of a sharp pullback on the stock market. Bitcoin is accelerating its downward trend.
Read time approx.: 1 minutes, 39 secondsGoldman Sachs and Morgan Stanley argued that while corporate profits have been strong, the challenge is the valuations that markets have put on them. Ted Pick, head of Morgan, warned that there is still a “risk of policy error” in the US and an uncertain geopolitical context. Wall Street executive directors warned that investors must prepare for a stock market drop of more than 10% in the next 12 to 24 mon…
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