Stocks fell on Tuesday as investor sentiment turned cautious as market valuations continue to push towards record highs. The ongoing U.S. government shutdown is also impacting outlooks.

The Dow Jones Industrial Average (DIA  ) dropped nearly 250 points to settle at 47,085.24, while the broader market S&P 500 Index (SPY  ) declined 1.1% to end the session at 6,771.55. The tech-heavy Nasdaq Composite (QQQ  ) also lost about 2% to close at 23,348.63.

In the spotlight, Palantir Technologies (PLTR  ) reported better-than-expected third quarter results and issued strong forward guidance as the analytics tools provider expects its artificial intelligence segment to grow. The company is calling for revenue of about $1.33 billion for its current quarter, and calls for $4.4 billion for the full year.

Overnight remarks from the leaders of Goldman Sachs (GS  ) and Morgan Stanley (MS  ) weighed on the broader market on Tuesday, with both chief executives cautioning that the market is due for a pull back over the next two years.

"It's likely there'll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months," Goldman CEO David Solomon said at the Global Financial Leaders' Investment Summit in Hong Kong. "Things run, and they pull back so people can reassess."

Morgan Stanley CEO Ted Pick, speaking at the same event, said investors should see pullback as features of a healthy stock market rather than a crisis, adding that investors should "welcome the possibility that there would be drawdowns, 10 to 15% drawdowns that are not driven by some sort of macro cliff effect."

Elsewhere, analysts at Bank of America warned on Tuesday that a delay in food assistance payments to low-income Americans could impact consumer spending in November by as much as half of a percentage point. The weeks-long U.S. government shutdown has halted the disbursement of Supplemental Nutrition Assistance Program (SNAP) funds.

"The government noted that there could be substantial delays in the disbursement of funds, so we would still expect an economic headwind in the near term," the analysts said in a note to clients.

On the earnings front, Uber Technologies (UBER  ) shares declined on Tuesday even as the ride-hailing company delivered better-than-expected third-quarter results. CEO Dara Khosrowshahi said in remarks that this quarter saw the "strong growth since the end of 2023 and the largest trip volume in Uber's history outside the post-COVID rebound."

For the fourth quarter, Uber expects gross bookings to come between $52.25 billion and $53.75 billion. The company also expects adjusted EBITDA to range between $2.41 billion and $2.51 billion.

Looking ahead, market participants will parse through earnings reports from companies including Advanced Micro Devices (AMD  ), Novo Nordisk (NVO  ) and McDonald's (MCD  ) on Wednesday. Payroll processing firm ADP will also deliver its monthly employment reading for October, which is expected to show 22,000 additions over the previous month.