The major averages pulled back on profit-taking from a number of artificial intelligence stocks and recent high flyers like Palantir. The Dow Jones Industrial Average lost 251 points to 47,085. The S&P 500 declined 80 points or 1.1% while the Nasdaq Composite lost 486 .04% to finish at 23,348.64. The Dow Jones Industrial Average

 lost 251.44 points, or 0.53%, to 47,085.24.

Palantir shares shed about 8%, even after the software company beat Wall Street’s estimates for the third quarter and gave strong guidance, fueled by growth in its AI business. The stock, which has risen more than 150% this year, trades at more than 200 times forward earnings. Another software firm, Oracle fell almost 4% after a 50% gain this year. AIA chipmakers did not fare much better with Nvidia down 4%, Broadcom and AMD down 3% while Micron fell 7%.

The big cap techs were all lower accept Apple which closed modestly higher.

Outside tech, most sectors held up much better. Yesterday more than 300 stocks in the broad-market index closed in the red creating more concerns about weak breadth and high levels of tech concentration.

Interest rates remain quiet with the 10-year Treasury modestly lower on concerns of the state of the economy. The 10 year fell 2 basis points to 4.08%. The 2-year Treasury note yield declined more than 2 basis points to 3.57% while the 30-year bond yield remained at 4.66%.

In the commodity space, oil was down a percent hovering at $60 a barrel. Gold was down 2% on a strong dollar while crypto currencies dropped over 5% closing in on bear market territory.

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