S&P 500 Corrects, Nvidia Falls After Earnings Report
US stocks weakened on Thursday, with the S&P 500 correcting after the latest results from chip giant Nvidia and software company Salesforce failed to provide any meaningful boost to the broader market. The S&P 500 fell 0.8%, while the Nasdaq Composite shed 1.5%. The Dow Jones Industrial Average fell 75 points, or about 0.2%.
The main pressure came from Nvidia. The chip company's shares fell about 5%, despite Nvidia posting fourth-quarter earnings and revenue that beat expectations. This weakness put Nvidia on track for its worst daily decline since April, and also triggered a simultaneous correction in other semiconductor stocks. Several companies, including Broadcom, Lam Research, Western Digital, and Applied Materials, fell more than 6%.
Meanwhile, Salesforce actually gained about 2% after its quarterly report beat estimates on both revenue and earnings. However, its gains were tempered by disappointing fiscal 2027 revenue projections. Salesforce has recently become one of the most pressured stocks in the software sector, as investor concerns grow that a wave of AI-driven automation could disrupt the Software-as-a-Service business model.
Main Street Research Chief Investment Officer James Demmert believes Salesforce's performance is actually solid, but weak guidance has exacerbated negative sentiment in the software sector. He added that while AI advancements pose a real challenge for Salesforce, the selling pressure in the software industry in recent weeks has also potentially become "overdone." (mrv)
Source: Newsmaker.id
