Morning brief 05/11/2025

U.S. stocks fell on Tuesday as the market came under pressure from declines in artificial intelligence (AI)-related stocks such as Palantir. Investors grew increasingly concerned about the high valuations of stocks that had led the market rally in recent months. Specifically, Palantir shares dropped 8%, even though the software company reported third-quarter 2025 results that beat Wall Street expectations and gave a strong outlook. The stock had surged more than 150% so far this year. Meanwhile, Oracle shares, with a forward P/E ratio of over 33, fell nearly 4%, trimming its year-to-date gain to around 50%.