Big Tech Drops as Nvidia Fails to Spark an AI Rally – US Market Wrap

A selloff in the stock market’s most influential group pushed the Nasdaq 100 to its lowest level since November, as Nvidia’s results failed to revive the artificial intelligence rally that has propelled the equities bull market.

The S&P 500 dropped 1.6%, breaking a key technical level. Megacaps bore the brunt of the selling, as Nvidia’s good-but-not-great results disappointed investors. The chipmaker dropped 8.5%. The dollar rose after Donald Trump announced that 25% tariffs on Canada and Mexico would go into effect on March 4, along with an additional 10% tax on Chinese imports.

The uncertainty surrounding the actual impact of potential US tariffs on trade, the economy, inflation, and even geopolitics kept Wall Street traders on their toes. And Thursday’s large batch of economic data, released in advance of a key inflation reading, provided little relief.

The US economy expanded at a healthy pace, and inflation was more stubborn than expected by the end of 2024. In the fourth quarter, GDP increased at an unrevised annualised rate of 2.3%. Consumer spending, the primary driver of growth, increased by 4.2%.

The S&P 500 increased by 1.6%. The Nasdaq 100 dropped 2.8%. The Dow Jones Industrial Average fell 0.4 percent. The Magnificent Seven megacaps dropped 3%. The Russell 2000 Index declined 1.6%.
The yield on 10-year Treasuries increased two basis points to 4.27%. The dollar gained 0.6%.