Stock Rally Hits Speed Bump as Valuation Concerns Mount

The global stock rally hit a speed bump on November 4, 2025, as concerns about rich valuations grew louder following Palantir's earnings and warnings of a correction from Wall Street executives. The tech-heavy Nasdaq Composite Index fell 1.2% to 14,511.19, while the S&P 500 declined 0.8% to 4,242.45. Palantir's earnings report revealed a 15% decline in revenue, sparking concerns about the company's growth prospects. The company's stock price plummeted 12.5% to $23.45, wiping out over $10 billion in market value. This decline was largely driven by a 25% drop in software sales, which fell to $1.1 billion from $1.45 billion in the previous quarter. The market impact was felt across the board, with many tech stocks experiencing significant declines. The Philadelphia Semiconductor Index, which tracks the performance of semiconductor companies, fell 2.3% to 2,444.19. The decline in tech stocks was partly offset by gains in the energy sector, led by Saudi Aramco's better-than-expected earnings. The company's stock price rose 3.5% to $43.25, driven by higher output and lower production costs. Saudi Aramco's earnings report showed a 10% increase in revenue to $143.8 billion, driven by higher oil prices and increased production. The company's net income rose 15% to $49.5 billion, beating analyst expectations. Aramco's strong earnings were partly driven by its decision to increase production by 5% to 12.4 million barrels per day. The endorsement of Andrew Cuomo by President Trump has added another layer of complexity to the New York City mayoral election. Trump's endorsement of Cuomo, a Democrat, is seen as a significant development in the election, which pits Cuomo against Zohran Mamdani, a progressive Democrat. The election is seen as a key test of the city's politics, with implications for the future of the Democratic Party. In a related development, Trump threatened to withhold federal funding if Mamdani wins the election. This move is seen as an attempt to influence the outcome of the election and could have significant implications for the city's finances. In an interview on Bloomberg Daybreak: Europe, Benedict Lowe, Equity Derivatives Strategist at BNP Paribas Markets 360, noted that the stock market rally has been driven by low interest rates and easy monetary policy. However, he warned that the market is due for a correction, citing high valuations and rising inflation concerns. Torbjörn Törnqvist, CEO of Gunvor Group, echoed Lowe's sentiments, noting that the market is due for a correction. He also highlighted the importance of energy stocks in the current market environment, citing Aramco's strong earnings as a key driver of the sector. Erica Anderson, Chief Revenue Office at Notion, noted that the market is experiencing a period of high volatility, driven by concerns about inflation and interest rates. She also highlighted the importance of technology stocks in the current market environment, citing Palantir's earnings as a key driver of the sector. Overall, the stock market rally hit a speed bump on November 4, 2025, as concerns about rich valuations and rising inflation concerns weighed on investor sentiment. The market impact was felt across the board, with many tech stocks experiencing significant declines. However, the energy sector showed resilience, driven by Saudi Aramco's better-than-expected earnings. The endorsement of Andrew Cuomo by President Trump has added another layer of complexity to the New York City mayoral election, with implications for the future of the Democratic Party.