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Nasdaq Tumbles as Investors Question Tech Stock Prices
5 Nov
Summary
- Tech-heavy Nasdaq drops 1.5% amid valuation concerns
- Palantir shares fall over 7% despite strong results
- Norway's wealth fund to vote against Tesla CEO's pay package
On November 5th, 2025, US stocks experienced a decline, with the tech-heavy Nasdaq Composite leading the losses by sliding approximately 1.5%. The benchmark S&P 500 also lost around 0.9%, while the Dow Jones Industrial Average dipped by about 0.5%.
The sell-off was driven by growing investor concerns that companies' performance may not justify their lofty market valuations. This sentiment was echoed by big bank CEOs, who warned of a likely correction ahead. Palantir's shares dropped more than 7% despite reporting solid quarterly results, as analysts questioned the stock's high price-to-earnings ratio. Skepticism is now seeping in about the staying power of this year's tech-driven rally, even as earnings continue to come in strong.
Meanwhile, Norway's sovereign wealth fund, one of Tesla's biggest stakeholders, said it will vote against approving CEO Elon Musk's $1 trillion pay package, marking critical opposition to the EV maker's compensation plan.
