Dow futures tumble over 450 points on Tuesday: 5 things to know before Wall Street opens

Market Overview - Dow futures fell over 450 points or 0.76% as traders engaged in profit-taking and expressed risk aversion ahead of a significant earnings week [1][2] - The market is balancing optimism about growth with caution regarding valuations and upcoming economic data releases [2] Economic Context - The US government shutdown has entered its 35th day, with signs of progress emerging as bipartisan discussions for a potential resolution are underway [3] - The shutdown has disrupted federal programs, leading to furloughs and delays, particularly affecting air travel due to a shortage of air traffic controllers [3] - Food stamp benefits for low-income families have either run out or are partially funded, exacerbating economic hardship [4] Company Performance - Palantir reported Q3 2025 earnings of $1.18 billion, a 63% increase from the previous year, driven by strong demand for its AI platform [6] - The US commercial business for Palantir grew by 121%, but the stock experienced volatility, initially rising 4% before dropping by the same percentage [6][7] - Despite positive earnings and raised guidance, investor unease persists due to high valuations and the ongoing government shutdown [7] Technology Sector - Stocks associated with major AI players, particularly Amazon, saw gains, with Amazon's shares reaching a record high following a $38 billion deal with OpenAI [7][8] - The partnership will have Amazon Web Services manage a significant portion of OpenAI's AI computing needs, boosting confidence in AI infrastructure [8] Cryptocurrency Market - Bitcoin fell below a critical support level of $106,000, raising concerns among traders about a potential decline towards $100,000 or even $85,000, where historical buying support exists [9] - The shift in the put-call skew for the "Magnificent 7" tech stocks indicates potential market peaks or a pullback [9] Global Market Trends - Asian markets faced declines as profit-taking occurred after recent record highs, with Japan's Nikkei down 1.74% and South Korea's Kospi down 2.37% [10] - European stocks also reversed early gains, with Germany's DAX down 1.38% and France's CAC 40 down 1.29% [10]