Tech sell-off shakes global markets

Market Overview - The major sell-off in US markets saw the NASDAQ down 2%, S&P 500 down over 1%, and Dow industrials down approximately 250 points, primarily driven by the tech sector [1] - Palantir shares fell nearly 8%, Nvidia down almost 4%, AMD also trading lower, and Tesla down about 5% [2] Market Sentiment - Signs of stabilization are emerging in Europe, with Palantir down 2% in extended trade, while Tesla and Nvidia shares appear to be stabilizing [2] - There is speculation on whether investors will buy the dip or if this marks the start of a sustained sell-off [3] Market Correction Predictions - Executives from Goldman Sachs and Morgan Stanley predict a potential 10% to 20% drawdown in equity markets within the next 12 to 24 months [3][4] - The possibility of 10% to 15% drawdowns not driven by macroeconomic factors is acknowledged, indicating a healthy market correction [5] Company-Specific Insights - Palantir CEO Alex Karp criticized short sellers, including notable investor Michael Burry, for betting against Palantir and Nvidia [5][6] - Karp argues that the market manipulation is evident, claiming that Palantir has delivered exceptional results [6][7] - Karp emphasizes that while shorting is a valid strategy, it should not target companies that are contributing positively to society [7] Valuation Concerns - There is a discussion around the high valuation of Palantir, trading at 250 times forward earnings, while its expected revenue is $4.4 billion [10] - The disparity between the valuation and the company's growth potential raises questions about market manipulation and investor sentiment [9][10]