Wall Street Under Pressure: Nvidia Plummets, Nasdaq Down 1.18%
US stocks closed lower on Thursday (February 26th), with the S&P 500 declining after the latest earnings reports from technology giant Nvidia and software company Salesforce were deemed insufficient to lift broader market sentiment. The S&P 500 fell 0.54%, while the Nasdaq Composite weakened 1.18%. Meanwhile, the Dow Jones Industrial Average edged up 17 points.
The main pressure came from Nvidia. The chipmaker's shares fell more than 5%, despite the company posting fourth-quarter earnings and revenue that beat estimates. This decline was the worst since April, and dragged down several other semiconductor stocks, including Broadcom, Lam Research, Western Digital, and Applied Materials.
Facet Chief Investment Officer Tom Graff believes the market is now in "prove it" mode—investors are demanding stronger evidence that the AI growth and narrative will continue, reflecting already high valuations. He stated that Nvidia has not fully met these standards in this report, amid market concerns regarding the company's partnership with OpenAI. He believes the combination of already high expectations and increasingly skeptical market sentiment could potentially keep Nvidia's stock volatile for at least the next few quarters.
Meanwhile, Salesforce—which has recently been one of the stocks most pressured by concerns about "AI disruption"—rose around 3% after posting quarterly results that beat estimates for both revenue and profit. However, this gain was limited by disappointing fiscal 2027 revenue projections, which continue to dampen market optimism for the software sector.
Source: Newsmaker.id
