US Stocks Mixed, Focus Shifts to AI Demand & Iran Headlines
US stocks moved mixed on Thursday (February 26th), as the market assessed Nvidia's performance report and its implications for AI demand—a major theme that has underpinned the US index rally in recent years. The relatively limited reaction to Nvidia's results confirmed that investors are now more sensitive to the details of the outlook and the sustainability of AI capital spending (capex), rather than simply "beating" consensus figures.
Nvidia reported January quarter revenue that beat estimates and its current-quarter revenue projections that exceeded market estimates. However, the stock's movement did not spark widespread euphoria, indicating that expectations for the AI giant are increasingly high and the market is beginning to test whether the AI growth narrative remains strong enough to sustain the technology sector's valuations.
Beyond semiconductors, investor attention also shifted to software stocks. Salesforce fell after delivering a below-expected annual revenue forecast, renewing concerns that corporate IT spending has not fully recovered and that AI-based competition/disruption is making investors more selective about Software-as-a-Service models.
Meanwhile, the market was also monitoring developments in the US-Iran nuclear talks in Geneva. This geopolitical risk is a factor that can rapidly shift risk appetite, potentially impacting the energy sector through expectations of sanctions direction, supply stability, and perceived risk in strategic shipping routes.
With the combination of "earnings scrutiny" on the AI theme and ongoing geopolitical headlines, Wall Street tends to move in a mixed manner: investors are holding back from pursuing broad rallies and opting for sectoral rotation based on each issuer's respective catalysts.
Source: newsmaker.id
