Stocks experienced a steep sell-off on Thursday as technology shares declined following Nvidia’s recent earnings report, while investors reacted to President Trump’s renewed tariff promises. The S&P 500 dropped over 1.6%, the Nasdaq Composite fell 2.8%, and the Dow Jones Industrial Average declined 0.4%.
Stocks decline as technology shares sell off after Nvidia report
Nvidia’s quarterly earnings beat expectations, suggesting there is room for growth, but the company’s profit outlook raised concerns on Wall Street. Following its report, Nvidia’s stock erased morning gains, plummeting over 8% by the end of the day.
Signs of a weakening US economy emerged, with GDP growth reported at a revised 2.3% annualized rate last quarter, indicating a slowdown from previous periods. Additionally, weekly initial jobless claims surged to 242,000, surpassing the anticipated 221,000, which reflects a softening labor market.
Investors are now looking toward the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, scheduled for release on Friday. This data is expected to provide insight into the uncertain path for potential interest rate cuts.
Trump reiterated plans to impose levies against Mexico and Canada, effective March 4, while announcing additional tariffs on China. His previous threats included a proposed 25% tariff on European goods.
Bitcoin (BTC-USD) prices continued to decline, falling below $84,000, marking their lowest levels since November 2022. This drop is seen by some as indicative of diminishing confidence in Trump’s economic strategies.
The broader market faced repercussions from Nvidia’s performance, as its shares fell by 2.7% and affected other chipmakers like Broadcom (AVGO) and Advanced Micro Devices (AMD), which also saw declines. The technology sector within the S&P 500 saw a 1.2% drop.
Most large-cap companies were adversely affected, with Alphabet (GOOGL) and Meta (META) each decreasing by over 1%. Investment strategist Ross Mayfield noted, “At this point, there’s just an incredibly high bar for Nvidia to clear to get a big outside-stock reaction.”
The market also faced pressure from economic data suggesting stagnation, which contributed to the downward trajectory of major indexes throughout February. The S&P 500 broke a significant support level at 5,900 and retreated to around 5,860. Analysts indicate a possible further downturn if support at 5,800 is breached.
Recent reports from Salesforce (CRM) lowered fiscal 2026 revenue forecasts, leading to a 4.1% drop in its stock. Conversely, Snowflake (SNOW) rose by 9% after announcing expectations for above-estimate revenue in its fiscal 2026. Viatris (VTRS) slumped 15.7% due to a dismal annual forecast, while Warner Bros. Discovery (WBD) saw a 5.4% increase following projections of doubling streaming profits in the coming year.
Advancers were outnumbered by decliners, with a ratio of 1.63-to-1 on the NYSE and 1.75-to-1 on the Nasdaq. The S&P 500 witnessed 11 new 52-week highs against five new lows, while the Nasdaq recorded 24 new highs and 120 new lows.
Nvidia’s pullback was influenced by the structure of the options market, exhibiting a bullish sentiment prior to the earnings announcement. After the report, there was a notable reduction in call delta exposure, which led to significant selloff pressure. Nvidia also breached key technical levels, with immediate support now appearing around 118, potentially moving down to 109.
Featured image credit: Simon Shim/Unsplash
