Reuters: Nerves rise regarding frothy valuations in global markets

A recent Reuters report by Mike Dolan indicates a sharp pullback in global markets from recent highs, driven by increasing investor anxiety regarding potentially overvalued assets. This nervousness was exacerbated by a 6% decline in Palantir's stock, despite exceeding earnings expectations, highlighting the market's heightened standards for performance. Adding to these concerns, the CEOs of Morgan Stanley and Goldman Sachs have cautioned that global equity markets may be approaching a correction. This risk-averse sentiment is impacting various asset classes. Wall Street index futures have decreased by over 1%, mirroring losses in global stock markets. The report also notes declining Treasury yields and significant currency volatility. The Japanese yen experienced a notable surge following a government warning, while the British pound fell to a six-month low against the U.S. dollar.