Stock Market Today: S&P 500 Slips 0.4% as AI Jitters Return, Palantir Tumbles Despite Earnings Beat; Dow Holds Near Flat

New York, Nov. 3, 2026 — U.S. stocks closed mostly lower on Tuesday, with the S&P 500 and Nasdaq Composite retreating as renewed concerns over AI valuations and a sharp selloff in Palantir offset strength in healthcare and energy shares.

The S&P 500 fell 0.37% to close at 7,737.55, while the Nasdaq Composite dropped 0.58% to 26,226.09 . The Dow Jones Industrial Average slipped just 0.08% to 52,516.29, cushioned by gains in defensive names .

Why Did the Stock Market Fall Today?

1. Palantir tumbled despite a beat-and-raise quarter. The AI analytics company reported third-quarter revenue of $1.18 billion, up 63% year-over-year, and raised its full-year outlook for the third time this year . However, shares plunged 8.5% as investors questioned whether the company’s 88x forward sales valuation leaves any room for error. The reaction underscored a broader shift in market psychology: even strong results are no longer enough to sustain momentum in AI-linked names .

2. AI infrastructure stocks resumed their slide. CoreWeave fell 3.2% and Nebius dropped 2.8% as concerns about debt-funded data center expansion resurfaced ahead of the company’s earnings report later this week . The Philadelphia Semiconductor Index slipped 0.6%, with Nvidia down 0.8% and AMD off 1.1% .

3. Rising Treasury yields weighed on growth stocks. The 10-year Treasury yield climbed to 4.98%, up from Monday’s 4.91%, as investors positioned for Friday’s nonfarm payrolls report. Higher yields make future earnings less valuable in present terms, pressuring high-multiple technology shares .

Which Sectors and Stocks Held Up?

Healthcare and energy were the only S&P 500 sectors to post meaningful gains, rising 0.9% and 0.7% respectively, as investors rotated toward defensive positioning .

Pfizer gained 1.6% after raising its full-year profit forecast on strong demand for its COVID-19 antiviral and cancer treatments . Exxon Mobil added 1.2% as crude prices stabilized above $100 per barrel .

On the downside:

• Palantir plunged 8.5%, leading software and AI names lower
• Super Micro Computer fell 4.2% after providing weak gross margin guidance
• Ford dropped 2.8% despite beating earnings estimates, as investors focused on narrowing profit margins

What Are Treasury Yields and the VIX Saying?

The 10-year Treasury yield rose to 4.98%, while the 30-year yield held near 5.42% . The move reflected caution ahead of Friday’s jobs report and next week’s consumer price inflation data .

The CBOE Volatility Index (VIX) ticked up 2.9% to 16.28, signaling modestly elevated anxiety as the market digests a busy earnings week and awaits key economic data .

What Economic Data Was Released Today?

The JOLTS job openings report showed 7.2 million available positions in September, slightly below the 7.3 million consensus and the lowest level since early 2021. The data suggests the labor market is gradually cooling, consistent with the Federal Reserve’s goal of reducing inflation without triggering a sharp downturn .

What’s Next for Investors?

Attention shifts to Wednesday’s ADP employment report and Friday’s October nonfarm payrolls, with economists expecting job growth of approximately 75,000 after September’s surprisingly weak 29,000 reading. A stronger-than-expected print could revive rate-hike expectations, while another soft reading would reinforce the view that the Fed is done tightening .

Investors will also monitor CoreWeave’s earnings on Wednesday and Disney’s results on Thursday for further clues on AI spending and consumer health .

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Key Takeaways (Quick Summary)

• S&P 500 fell 0.37% to 7,737.55; Nasdaq dropped 0.58% to 26,226.09; Dow slipped 0.08% to 52,516.29
• Palantir plunged 8.5% despite a beat-and-raise quarter, as valuation concerns outweighed strong results
• AI infrastructure stocks slid: CoreWeave -3.2%, Nebius -2.8%
• Healthcare and energy were the only sectors to gain as defensive rotation continued
• 10-year Treasury yield rose to 4.98% ahead of Friday’s jobs report
• VIX ticked up 2.9% to 16.28, signaling modest anxiety
• JOLTS job openings fell to 7.2 million, lowest since early 2021
• October nonfarm payrolls due Friday, consensus expects ~75,000 jobs