Wall St ends lower as bank CEOs warn of possible pullback

STORY: U.S. stocks closed sharply lower on Tuesday, with the Dow dropping more than half a percent, the S&P 500 shedding more than 1% and the tech-heavy Nasdaq losing 2%.All three major stock indexes slid well into negative territory after the CEOs of Morgan Stanley and Goldman Sachs stoked fears of a potential market bubble, with the S&P 500 having climbed to a series of all-time highs, largely powered by the AI boom.That combined with uncertainty over the outcome of Tuesday's political races and the future path of interest rates had investors heading for the exits, said Rob Haworth, senior investment strategy director at US Bank Asset Management Group.“I think as we look at today in the markets, we're seeing a bit of a risk off move. We're waiting on election results to tell us something, I think, about the election environment and maybe the government shutdown. But really I think what investors are concerned about is are we reaching peak AI and is the Fed maybe not going to cut in December? And that's causing a little angst in the market and a little bit of a sell off, particularly in the highly valued names in the Nasdaq.”Among those highly valued names, six of the "Magnificent Seven" stocks lost ground, with AI chip leader Nvidia ending nearly 4% lower. Apple was the only gainer.Shares of Palantir Technologies slid 8% despite the data analytics company's better-than-expected fourth-quarter revenue forecast. The stock has soared over 150% so far this year.And shares of Uber fell about 5% in the wake of the ride-hailing platform's quarterly profit miss.

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