The US market reacted on a mixed note to Nvidia's strong quarterly earnings. Massive selloffs in tech biggies dragged Nasdaq, poising the index to end February 2025 month on a bearish note. While Dow Jones kept a gaining momentum, however, S&P 500 index traded volatile. Investors focus also turned cautious broadly after Donald Trump reaffirmed his plan to slap huge tariffs on China, Mexico and Canada, while the US 47th President has also dropped the bombshell of imposing at least 25% tariff on EU. Dollar recorded its highest single-day performance in one week, owing to Trump's tariff proposals.
US Market On February 27:
Dow Jones: The Dow Jones Industrial Average traded at 43,762.99, higher by 329.87 points or 0.8%. The index ranged between an intraday high and low of 43,884.19 and 43,466.51 respectively. Dow Jones is currently the best performing benchmark of Wall Street year-to-date.
S&P 500: The Standard and Poor's 500, or simply the S&P 500 traded 5,960.09, marginally up at the time of writing. The index traded between 5,993.69 and 5,918.04 respectively.
Nasdaq Composite: The tech-heavy index slid by 90.62 points or 0.5% to trade at 18,984.65, while it broadly ranged between 19,242.69 to 18,801.20. The performance comes after sharp decline in Nvidia shares.
Nvidia Share Price: The largest AI stock in the world, lost a whopping $97.1 billion, down by 3.02% to $127.32. Nonetheless, it is still the second largest company in the world with m-cap of $3.109 trillion.
Nvidia stock nosedived despite smashing Wall Street estimates in the fourth quarter. The company recorded all-time high quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year ago. While it also posted record quarterly Data Center revenue of $35.6 billion, up 16% from Q3 and up 93% from a year ago. Nvidia's full-year revenue was also at record high of $130.5 billion, up 114%.
Explaining in detail the performance of Wall Street, Trading Economics data stated that the S&P 500 and Nasdaq lost early momentum on Thursday, slipping 0.1% and 0.5%, respectively, as the tech sector weighed on the broader market. Nvidia dropped 2.2% after posting its smallest revenue beat in years, failing to impress investors. Other major tech names also declined, with Alphabet down 1.1%, Broadcom falling 2%, and Tesla slipping 0.8%. In contrast, the Dow Jones added about 200 points, supported by gains in financial stocks. JPMorgan rose 1.6%, while Visa advanced 2.2%. However, Salesforce fell 2.9% after issuing disappointing revenue guidance.
Meanwhile, investor sentiment took a hit after President Trump reaffirmed that 25% tariffs on Canada and Mexico will take effect next week and announced plans for an additional 10% tax on Chinese imports. On the data front, economic indicators continued to highlight resilience in the US economy, despite signs of a softening labour market and persistently high inflation, Trading Economics data added.
The latest threat by Trump has worked in favour of the Dollar as the DXY surged by nearly 1% to trade over $107.1, the highest in one week. Trump's tariff of 25% tariffs on Canada and Mexico are expected to come into effect from next week, while he revealed that his additional 10% tax on Chinese imports along with 25% tariffs on EU goods may come into place from April 2 onward.
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