S&P 500 Ends Down as Nvidia Drops Following Report
The S&P 500 and Nasdaq ended sharply lower on Thursday, weighed down by a slump in chipmaker Nvidia after its quarterly report failed to rekindle Wall Street's AI rally, while investors focused on data pointing to a cooling U.S. economy.
Nvidia (NVDA.O), dropped after the Silicon Valley company gave a weaker-than-expected quarterly forecast for gross margin that overshadowed an upbeat revenue outlook.
Chipmakers Broadcom (AVGO.O), and Advanced Micro Devices (AMD.O), also fell, pulling the Philadelphia chip index (.SOX), down sharply.
The launch of low-cost artificial intelligence models from China's DeepSeek in January has cooled Wall Street's AI rally, while an analyst report this week suggesting Microsoft was scrapping some data center leases also raised concerns of AI overcapacity.
According to preliminary data, the S&P 500 (.SPX), lost 93.76 points, or 1.57%, to end at 5,862.79 points, while the Nasdaq Composite (.IXIC), lost 531.00 points, or 2.78%, to 18,544.26. The Dow Jones Industrial Average (.DJI), fell 192.98 points, or 0.44%, to 43,240.14.
While tech stocks dipped, other parts of the market saw gains. The S&P energy index (.SPNY), rose, tracking a jump in crude prices after U.S. President Donald Trump canceled oil major Chevron's license to operate in Venezuela.
Source : Reuters
