Market Jitters as Tech Valuations Wobble Amid Government Shutdown Resolution

Wall Street faces uncertainty as tech valuations falter, with escalating concerns over prolonged government shutdown impacts. The Nasdaq and S&P 500 experienced significant gains, yet AI-related stock volatility persists. Meanwhile, U.S. legislative progress is closely monitored for potential reopening, impacting various sectors and influencing economic forecasts.

Wall Street futures dipped on Tuesday amid renewed concerns about inflated technology valuations, while attention remained on efforts to conclude the longest U.S. government shutdown in history. The market is eyeing legislative progress closely as the shutdown continues to strain the economy and obscure data crucial for the Federal Reserve and investors.

Technology and AI stocks rebounded sharply on Monday, with the Nasdaq achieving its biggest daily gain since late May and the S&P 500 marking a notable one-day percentage rise not seen since mid-October. The surge was driven by expectations of an imminent government reopening, anticipated to alleviate economic pressures and enhance data transparency.

In company-specific developments, Nvidia's shares fell following SoftBank's disclosure of its complete exit from the company. Additionally, CoreWeave saw a slump in premarket trading after revising its annual revenue forecast downward. With the conclusion of the third-quarter earnings season approaching, profit growth for S&P 500 companies is surpassing initial estimates, offering some optimism amid ongoing market uncertainty.

(With inputs from agencies.)