In the early hours of November 5 (Beijing Time), U.S. stocks experienced a further downturn in Tuesday afternoon trading, with the Nasdaq Composite Index plummeting by 2%. Investors are growing increasingly wary of the lofty valuations of AI-related stocks. This sentiment was exacerbated by news that 'The Big Short' investor Michael Burry's investment firm had taken short positions on Nvidia and Palantir, triggering a broad sell-off in AI sector stocks. Simultaneously, the CEOs of Goldman Sachs and Morgan Stanley raised red flags, cautioning about a potential market correction in U.S. equities.

Adding to the market's woes, the U.S. government shutdown has dragged on for 35 days without any signs of a resolution in sight. This political stalemate has weighed heavily on investor sentiment, causing the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 indices to all retreat. Despite Palantir reporting robust earnings growth, its stock price continued its downward trajectory, hampered by market disappointment over the lack of clarity regarding its 2026 outlook and its elevated valuation multiples. Other artificial intelligence stalwarts, including Oracle and AMD, also witnessed widespread declines.

Furthermore, Bitcoin prices tumbled to a two-week low, sparking a broad-based retreat in cryptocurrency-related stocks. The article also provides an overview of the latest developments in closely watched stocks such as Beyond Meat, Tesla, and Pfizer, offering investors a comprehensive snapshot of the current market landscape.