Chip Stocks Get Hit as Nvidia Tumbles; Oil Climbs: Markets Wrap
(Bloomberg) — A rout in chipmakers weighed on stocks as Nvidia Corp.’s results failed to inspire investors seeking reassurances about the artificial-intelligence outlook. Oil climbed as Iran said nuclear talks with the US were intense, spurring a flight to the perceived safety of bonds.
While 330 shares in the S&P 500 rose, the benchmark fell. The Nasdaq 100 lost 1.5%. Even after giving a bullish forecast, Nvidia sank 5%, dragging down almost every company in a closely watched semiconductor gauge. Salesforce Inc. gave a strong outlook for long-term sales and announced a large share buyback, helping assuage some fears about AI disruption of the software industry.
The mixed response from investors reflects lingering uncertainties about the outlook for the revolutionary technology. After soaring for much of the past few years, Nvidia shares have gone cold amid questions about massive AI spending. Meanwhile, traders have been fleeing sectors seen as potentially under threat from AI disruption.
The reason why investors didn’t launch into a frenzy after seeing revenue, net income, and guidance come in way better than expected is that Nvidia rarely misses on those metrics, according to Hardika Singh at Fundstrat Global Advisors.
“But where it did miss was easing investors’ concerns about its narrowing moat in the evolving world of compute and explaining its gameplan for how it’ll fare in a world of AI disruption that could upend all kinds of businesses from cybersecurity to food delivery to banks,” she said.
HSBC Holdings Plc strategists halved their US equity overweight, rotating into emerging markets and Europe amid strong economic momentum. The team led by Max Kettner remains firmly risk on, citing an increase in key cyclical indicators, such as spending and manufacturing, in the last two months.
On the economic front, US jobless claims rose by less than expected last week, indicating that layoffs remain relatively low.
The S&P 500 lost 0.8%. The yield on 10-year Treasuries fell three basis points to 4.03%. The dollar wavered. Oil topped $66.
Corporate Highlights:
Warner Bros. Discovery Inc. reported lower fourth-quarter sales and earnings, underscoring the challenges the media giant is confronting as it weighs competing takeover bids from rival entertainment companies. Ford Motor Co. will recall nearly 4.4 million vehicles including its some of its top-selling F-Series pickup and popular sport utility vehicles in a setback for the company’s push to improve quality. Hertz Global Holdings Inc. reported a fourth-quarter loss that was worse than expected as the company said the government shutdown and softer used-car prices both affected results late in the year. JM Smucker Co. said two new directors will be joining its board as part of an agreement reached with activist investor Elliott Investment Management. Celsius Holdings Inc. posted sales which more than doubled from a year earlier following its acquisition of Alani Nu. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.8% as of 10:51 a.m. New York time The Nasdaq 100 fell 1.5% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 was little changed The MSCI World Index fell 0.5% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1794 The British pound fell 0.3% to $1.3518 The Japanese yen rose 0.2% to 155.98 per dollar Cryptocurrencies
Bitcoin fell 2.2% to $67,400.23 Ether fell 3.2% to $2,034.06 Bonds
The yield on 10-year Treasuries declined three basis points to 4.03% Germany’s 10-year yield declined one basis point to 2.70% Britain’s 10-year yield declined four basis points to 4.28% Commodities
West Texas Intermediate crude rose 1.1% to $66.14 a barrel Spot gold rose 0.4% to $5,185.38 an ounce ©2026 Bloomberg L.P.
