Synopsis
US stocks fell sharply on Thursday, with the tech-heavy Nasdaq leading losses after Nvidia’s profits failed to impress investors. While the Dow remained flat, the decline in the Philadelphia SE Semiconductor index threatened a record winning streak for SOX. Investors are grappling with the potential disruption and costs of AI, which are impacting tech stocks.
P.A.Indian markets saw a sharp slowdown as technology stocks, particularly those related to AI, faltered after Nvidia’s earnings failed to rouse investor enthusiasm.U.S. stocks fell sharply on Thursday, a day after earnings from artificial intelligence vanguard Nvidia failed to impress investors, weighing on technology stocks that contributed to the recent rally.
A return to cyclical sectors helped keep the Dow near “even,” while a dropin the Philadelphia SE Semiconductor index dragged the tech-heavy Nasdaq down the most.
With Thursday’s decline, SOX, which has surged since the start of the year, was poised to end what would have been a record 11-week winning streak.
Technology stocks in general, and software and chips in particular, have seen swings in recent weeks as investors grapple with anxiety over the enormous costs and potential disruption of nascent AI technology.
While all three major U.S. stock indexes are on track for modest weekly losses, the S&P 500 and Nasdaq are poised to close lower this month. The Dow Jones remains on track to post a rise in February.
Nvidia’s fourth-quarter results, released after Wednesday’s close, were better than analysts expected, and the chipmaker provided estimates that beat market estimates. But the world’s richest company by market capitalization faces increasingly difficult year-over-year comparisons as its revenue growth slows.
“It looks like a hangover from Nvidia specific to the AI space,” said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. “The S&P itself is being dragged down by Nvidia and the Magnificent 7, and the Nasdaq is really getting hit.”
“These are simple investors going long on Nvidia and short-circuiting AI disruption,” Green added. “And when that didn’t materialize on a large enough scale, they sold their position, sending Nvidia lower and pushing the stocks they were short higher.”
According to preliminary data, the S&P 500 lost 37.12 points, or 0.53%, to end at 6,909.01 points, while the Nasdaq Composite lost 272.93 points, or 1.18%, to 22,879.14. The Dow Jones Industrial Average rose 18.61 points, or 0.04%, to 49,500.76.
The S&P 500 software and services index gained ground after being beaten down in recent weeks by fears of possible AI disruption. The index benefited from Salesforce shares, even though the company provided weaker-than-expected revenue guidance.
Trade Desk fell following its disappointing revenue forecast amid increasing pressure from larger rivals. JM Smucker jumped on the packaged food company’s strong quarterly earnings and sales estimates.
C3.ai fell after providing weaker-than-expected sales guidance for the current quarter and announcing it would cut 26% of its global workforce.
Celsius Holding jumped after the energy drink maker beat quarterly revenue estimates.
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
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