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Traders work on the floor of the New York Stock Exchange in New York on November 4. / Source: Reuters–Yonhap

New York’s three major stock indexes fell together on Tuesday as worries about stretched valuations in big-cap technology and AI plays triggered broad selling.

The Dow Jones Industrial Average shed 251.44 points, or 0.53%, to close at 47,085.24. The S&P 500 dropped 80.42 points, or 1.17%, to 6,771.55, while the tech-heavy Nasdaq lost 486.09 points, or 2.04%, to finish at 23,348.64.

Concerns about an overheated AI trade intensified after officials warned of a market correction risk, sparking a wave of profit-taking across the sector.

At a press briefing, White House press secretary Caroline Leavitt said, “The president has already made it clear he has no intention of selling the top-tier Blackwell chips to China,” adding, “This matter is closed at this time.”

Reaffirmed curbs on Blackwell chip exports weighed on Nvidia, which fell 3.95%. Palantir, an AI-focused defense contractor, slumped nearly 8% despite stronger-than-expected third-quarter results, underscoring fragile sentiment toward high-multiple AI and semiconductor names after a year of outsized gains.

By sector, information technology sank 2.27%, with consumer discretionary, communication services and industrials each down more than 1%.