Dow, S&P 500, Nasdaq slide amid worries over frothy valuations

US stocks fell on Tuesday as doubts about high-running valuations preyed on investors sifting through the latest flurry of quarterly earnings.

The tech-heavy Nasdaq Composite  led losses, sliding about 1.5%.. The benchmark S&P 500 lost about 0.9%, while the Dow Jones Industrial Average  dipped by about 0.5%.

Wall Street is growing nervous that companies aren't performing well enough to justify their high-riding market valuations, prompting big bank CEOs to flag a likely correction ahead. Palantir shares dropped more than 7% despite solid quarterly results as analysts questioned the stock's lofty price-to-earnings ratio. Skepticism is now seeping in about the staying power of this year's tech-driven rally, even as earnings come in strong.

Before the bell, Uber posted strong results, but shares slipped in a sign investors wanted more. Eyes are now on chipmaker AMD's  report after market close, with focus on its massive AI deals. Spotify  and SuperMicroare also on the docket.

Meanwhile, Norway's sovereign wealth fund said it will vote against approving Tesla CEO Elon Musk's $1 trillion pay package, marking critical opposition by one of the EV maker's biggest stakeholders. Shares fell over 3%.