Most U.S. Stocks Climb, but Nvidia Drop Weighs on Wall Street/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Most U.S. stocks rose Thursday, but Nvidia’s decline dragged major indexes lower. The S&P 500 slipped despite gains in the Dow Jones Industrial Average. Oil prices fell and Treasury yields edged lower as investors monitored global developments.
Nvidia Stock Drop Weighs on Market Quick Looks
- S&P 500 falls 0.1% despite broad gains
- Dow Jones rises 254 points in early trading
- Nasdaq dips 0.4% as Nvidia slides 2.4%
- Nvidia beats earnings and revenue forecasts
- Salesforce rebounds on buybacks and dividend boost
- Oil prices fall amid U.S.-Iran nuclear talks
- Treasury yields ease after jobless claims report
Deep Look: Most U.S. Stocks Climb, but Nvidia Drop Weighs on Wall Street
NEW YORK — U.S. stocks showed mixed performance Thursday morning, with most shares climbing but a drop in Nvidia pulling major market indexes lower.
The S&P 500 slipped 0.1% in early trading after a volatile stretch earlier in the week driven by enthusiasm — and anxiety — surrounding the artificial intelligence boom. The Dow Jones Industrial Average rose 254 points, or 0.5%, while the Nasdaq composite declined 0.4%,
At the center of the market’s tension was Nvidia, the semiconductor giant whose advanced chips power much of today’s AI infrastructure. Despite reporting another quarter of robust profit growth that exceeded analysts’ expectations, Nvidia shares fell 2.4%.
Strong Results, Tepid Reaction
Nvidia posted revenue and profit figures that once again surpassed Wall Street forecasts. The company also projected revenue for the current quarter above analyst estimates, reinforcing CEO Jensen Huang’s assertion that demand for AI computing remains intense.
“Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth,” Huang said.
However, investors appeared less impressed by results that, while impressive, have become almost routine for Nvidia. After three years of extraordinary growth fueled by surging AI demand, expectations have risen to such heights that even strong earnings may not be enough to drive the stock higher.
Because Nvidia is the most valuable publicly traded company in the United States by market capitalization, its stock movements carry significant weight in index calculations. Its decline helped offset gains across many other companies, dragging down the S&P 500 even though a majority of its components advanced.
Broader Market Performance
While technology stocks were mixed, other sectors posted gains. Salesforce climbed 1.4% after delivering quarterly profits above expectations.
The cloud software company also announced plans to return up to $50 billion to shareholders through stock buybacks and increased its dividend by nearly 6%. CEO Marc Benioff described “agentic AI” as a positive force for the company’s future.
Even so, Salesforce projected fiscal-year revenue growth of 10% to 11%, with the midpoint slightly below Wall Street estimates. The stock remains down roughly 27% for the year amid concerns that AI-powered competitors could disrupt its business model.
Beyond software firms, industries ranging from trucking logistics to financial services have seen heightened volatility. Investors are reassessing which sectors may benefit from AI innovation and which could face competitive threats or obsolescence.
Elsewhere, Warner Bros. Discovery slipped 0.1% after reporting a $252 million fourth-quarter loss. Investors appeared focused less on earnings and more on potential strategic moves, including speculation about acquisition interest from Netflix or Paramount Skydance.
Oil Prices and Global Markets
Oil markets experienced some of the day’s sharpest movements. U.S. benchmark crude fell 1.7% to $64.32 per barrel, while Brent crude dropped 1.3% to $69.75.
The decline followed reports that the United States and Iran are holding indirect talks regarding Tehran’s nuclear program. A diplomatic resolution could reduce geopolitical risk in the Middle East and alleviate concerns about disruptions to global oil supply.
International markets were mixed. European indexes posted modest gains, while Asian markets showed divergent results. South Korea’s Kospi surged 3.7% to a record high, fueled by technology-related stocks and marking a nearly 50% gain since the start of the year. Hong Kong’s Hang Seng fell 1.4%.
Bond Market and Economic Signals
In the bond market, Treasury yields eased slightly. The yield on the 10-year Treasury slipped to 4.03% from 4.05% late Wednesday.
Fresh labor market data showed a modest uptick in weekly unemployment claims, in line with economists’ expectations. Applications remain relatively low by historical standards, suggesting continued resilience in the job market.
AI Optimism vs. Valuation Concerns
Thursday’s trading reflects the broader push-and-pull shaping financial markets in 2026. While enthusiasm over artificial intelligence continues to drive investment and corporate spending, questions linger about whether companies can generate sufficient long-term returns to justify the billions being committed to AI infrastructure.
Nvidia remains a bellwether for that debate. Its chips power the “AI factories” built by major technology firms, but its soaring valuation has heightened sensitivity to even minor disappointments.
For now, Wall Street remains divided — balancing confidence in the transformative potential of AI against caution over stretched valuations and sustainability.
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