Nikkei 225, Kospi, Hang Seng Index, Nifty 50

Asia Pacific markets were mostly headed lower on Wednesday, mirroring losses on Wall Street, which came under pressure from declines in artificial intelligence-related names like Palantir.

Australia’s S&P/ASX 200 started the day down 0.19%.

from hong kong Hang Seng Index Futures were pointing to a slightly lower open at 25,917 compared to the index’s last close of 25,952.4.

Similarly, Japan futures Nikkei 225 point towards a weaker opening of the market. Futures traded in Osaka stood at 51,230, while its counterpart in Chicago stood at 51,200, compared to the Nikkei’s last close at 51,497.2.

This follows comments from the CEOs of Goldman Sachs and Morgan Stanley on Tuesday, who warned investors to prepare for a drawdown over the next two years.

“Finally, a sell-off occurs as the ‘everything rally’ takes a breather following comments from the CEOs of (Goldman Sachs), (Morgan Stanley) and Capital Group that markets were due for a correction,” said Andrew Jackson, head of Japanese equity strategy at Ortus Advisors.

Overnight in the United States, the S&P 500 fell 1.17% to close at 6,771.55, while the Nasdaq Composite fell 2.04% to close at 23,348.64. The Dow Jones Industrial Average lost 251.44 points, or 0.53%, to 47,085.24.

Palantir shares fell about 8%, even after the software company beat Wall Street estimates for the third quarter and gave strong guidance, driven by growth in its artificial intelligence business.

AI stock’s gains have pushed the S&P 500’s forward price-to-earnings ratio above 23, near its highest level since 2000, according to FactSet. As those stocks have lifted the broader market to new heights in recent months, Ameriprise’s Anthony Saglimbene said in an interview with CNBC that without a pullback, valuations are starting to “really stretch.”

— CNBC’s Sean Conlon and Fred Imbert contributed to this report.