AI Leads Stock Selloff Sparked by Valuation Angst: Markets Wrap

The global stock rally hit a speed bump as earnings from artificial-intelligence bellwether Palantir Technologies Inc. failed to impress and Wall Street executives warned of rich valuations.

After a stretch of narrow, tech-led gains that lifted the S&P 500, futures on the benchmark fell 1% as the “Magnificent Seven” megacaps lost steam. Tesla Inc. and Nvidia Corp. led declines among the group in premarket trading, with Nasdaq 100 contracts down 1.3%. Palantir slid more than 6%.

Meanwhile, the dollar held at its highest since August as Federal Reserve officials offered mixed signals on the path of interest rates. ...