Market Movements Amid Tech Valuation Woes and Government Shutdown Hopes

The S&P 500 and Nasdaq are set to open lower amid concerns over technology valuations, as markets anticipate the end of a prolonged U.S. government shutdown. Nvidia shares drop after SoftBank divests its holdings. Meanwhile, Rocket Lab shares soar on robust third-quarter revenue.

The S&P 500 and Nasdaq are projected to open in the red on Tuesday, as apprehensions regarding inflated technology valuations resurface. Investors are keeping a keen eye on the potential resolution of the longest U.S. government shutdown in history, which has been casting a shadow over the economy.

Nvidia's stock fell 1.8% in premarket trading after Japan's SoftBank Group divested its remaining shares in the AI giant for $5.83 billion. Meanwhile, CoreWeave's stocks tumbled 8.3% following a revision of its annual revenue forecast. Despite these setbacks, AI and technology shares had previously rallied.

In other developments, Rocket Lab's shares surged 9.9% after posting record third-quarter revenues. Paramount Skydance shares saw a 5.3% uptick following new cost-cutting measures and plans for substantial investment in streaming. As the U.S. Senate pushes forward with a bill to end the government shutdown, market momentum is anticipated to continue.

(With inputs from agencies.)