Equities Decline Ahead of Nvidia’s High Stakes Earnings – US Market Wrap
A selloff in the world’s biggest technology names dragged stocks into their longest losing streak since August, highlighting how dependent the US market has become on a small group of growth heavyweights.
The S&P 500 dropped almost 1%, marking a fourth consecutive decline. Ahead of Nvidia’s earnings, its shares slid 2.8%. Expectations for the chipmaker continue to rise as it faces pressure to prove that the massive spending on artificial intelligence will ultimately deliver returns. Its guidance carries outsized weight given the company’s huge impact on major indexes.
Wall Street is growing more uneasy that AI has yet to generate the kind of revenue or profit needed to justify the enormous investment in infrastructure. Microsoft and Nvidia are preparing to invest as much as a combined $15 billion in Anthropic, deepening the AI developer’s ties with two of the strongest financial backers of its rival OpenAI.
The S&P 500 finished below 6,620 — its weakest level in over a month. A gauge of megacap tech stocks fell 1.8%. The VIX, a key measure of equity volatility, hovered near 25.
Bitcoin rose after briefly dipping below $90,000. The yield on 10-year Treasuries slipped two basis points to 4.12%, while the dollar fluctuated.
