Stocks Pressured Amid Valuation Concerns

Group 1: Market Overview - The markets are anticipating oral arguments at the Supreme Court regarding the legality of President Trump's reciprocal tariffs, with a ruling expected by late this year or early 2026 [1] - The S&P 500 Index is down -0.70%, the Dow Jones Industrials Index is down -0.35%, and the Nasdaq 100 Index is down -1.12% [5] - US stock indexes are sharply lower, with the S&P 500 falling to a 1.5-week low and the Dow Jones and Nasdaq dropping to 1-week lows [4] Group 2: Corporate Earnings - Q3 corporate earnings season is strong, with 80% of S&P 500 companies reporting earnings that beat forecasts, indicating the best quarter since 2021 [6] - Q3 profits are expected to rise by +7.2% year-over-year, the smallest increase in two years, while sales growth is projected to slow to +5.9% year-over-year [6] Group 3: Notable Stock Movements - Palantir Technologies is down more than -6% despite better-than-expected Q3 sales, raising concerns about extreme valuations with a price-to-sales ratio of 85, the highest in the S&P 500 [4][15] - Norwegian Cruise Line Holdings is down more than -13% after reporting Q3 revenue of $2.94 billion, below the consensus of $3.02 billion [14] - Zoetis is down more than -12% after cutting its full-year revenue estimate to $9.40 billion-$9.48 billion, below the consensus of $9.51 billion [14] Group 4: Economic Indicators - The US government shutdown, now in its sixth week, is the longest in history and is negatively impacting market sentiment and the economy [7] - Interest rates are affected by the ongoing government shutdown, which may allow the Fed to continue cutting rates [9]