US Stocks Slip as Oil Prices Rise Despite Nvidia Earnings Beat/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ US stocks slipped Thursday as rising oil prices and higher Treasury yields pressured Wall Street. Nvidia delivered another strong earnings report, but investors showed limited enthusiasm after the stock’s massive rally. Economic uncertainty tied to the Iran conflict and slowing business activity continued weighing on markets.

---

US Stock Market Decline Quick Looks

• The S&P 500 fell 0.4% Thursday morning.
• Nasdaq dropped 0.5% as AI stocks lost momentum.
• Nvidia slipped despite another major earnings beat.
• Oil prices climbed as Iran war uncertainty continued.
• Treasury yields moved higher, increasing pressure on markets.
• US business activity showed signs of slowing growth.
• Walmart shares fell after weaker profit guidance.
• Ralph Lauren surged after strong earnings results.
• South Korean technology stocks rallied sharply.
• Investors remain concerned about inflation and economic weakness.

---

Deep Look

Wall Street Slips as Oil Prices Rise Again

US stocks moved lower Thursday as rising oil prices, higher Treasury yields, and mixed economic data increased pressure on financial markets.

The S&P 500 fell 0.4%, putting the index on track for its fourth decline in five trading sessions after recently reaching record highs.

The Nasdaq composite lost 0.5%, while the Dow Jones Industrial Average slipped slightly as investors reacted to renewed concerns about inflation, global instability, and slowing economic growth.

The market weakness came despite another blockbuster earnings report from Nvidia, which once again exceeded Wall Street expectations.

Nvidia Delivers Strong Earnings but Stock Falls

Nvidia reported quarterly profit and revenue that easily beat analyst forecasts and also projected stronger-than-expected revenue for the current quarter.

CEO Jensen Huang continued emphasizing the rapid global expansion of artificial intelligence infrastructure.

“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” Huang said.

Despite the strong results, Nvidia shares fell 1.1% after fluctuating between gains and losses earlier in the session.

Investors appeared less impressed by results that have increasingly become routine for the AI giant.

Analysts said some traders likely locked in profits after Nvidia stock surged nearly 70% over the previous year, far outperforming the broader market.

AI Industry Faces Growing Valuation Concerns

The broader artificial intelligence sector has recently faced growing criticism from investors concerned that valuations have become excessively expensive.

Some analysts have also questioned the increasingly interconnected financial relationships inside the AI industry.

Nvidia has invested heavily in companies that purchase and rely on Nvidia chips, raising concerns among critics that parts of the AI boom have become financially circular.

Even so, Nvidia remains one of the most influential companies in global financial markets because of its dominant role in AI chip production.

Other major AI-related companies also traded unevenly Thursday as investor enthusiasm cooled following months of massive gains.

Oil Prices Surge as Iran Conflict Continues

A major source of market anxiety remained the ongoing conflict involving Iran and continued uncertainty surrounding the Strait of Hormuz.

Brent crude oil rose 2.2% to $107.32 per barrel Thursday after recent swings linked to fears that disruptions in the Persian Gulf could continue affecting global energy supplies.

The Strait of Hormuz remains one of the world’s most important oil shipping routes, and prolonged instability there has increased fears about inflation and economic disruption worldwide.

Higher oil prices continue impacting transportation costs, consumer spending, and business confidence.

The volatility in energy markets has also increased pressure across global bond markets.

Treasury Yields Rise Again

Treasury yields moved higher Thursday as investors reacted to stronger labor market data and ongoing inflation concerns.

The yield on the 10-year Treasury rose to 4.61% from 4.57% late Wednesday.

Earlier in the morning, yields climbed even higher after new unemployment data showed fewer Americans filed for jobless benefits than economists expected.

The stronger labor market data suggested the economy may remain resilient enough to keep inflation pressures elevated.

However, yields later eased slightly after a separate report showed weakening business activity across the United States.

New Economic Data Signals Slowing Growth

A preliminary survey from S&P Global showed American businesses facing slower growth and rising inflation pressures.

According to the report, companies are experiencing weaker demand while continuing to deal with higher costs linked partly to the Iran conflict and elevated oil prices.

“The damaging economic impact from the war in the Middle East is becoming increasingly evident in the business surveys,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

The report added to investor concerns that the economy may be slowing while inflation remains stubbornly high — a difficult combination often referred to as stagflation.

Walmart Falls Despite Strong Revenue

Several major companies also moved sharply following earnings reports.

Walmart shares dropped 6.7% even after the retail giant reported strong quarterly revenue.

Investors reacted negatively after Walmart issued weaker-than-expected profit forecasts for upcoming quarters.

The disappointing guidance increased concerns about consumer spending and retailer profit margins as inflation pressures continue affecting households.

Ralph Lauren Surges on Strong Results

Luxury retailer Ralph Lauren moved sharply higher after posting stronger-than-expected earnings and revenue.

The company’s stock jumped 10.5% as investors responded positively to continued demand for higher-end fashion products despite broader economic uncertainty.

The earnings reaction highlighted how investors remain highly selective while evaluating corporate performance in the current economic environment.

Global Markets Show Mixed Performance

International markets delivered mixed results Thursday.

South Korea’s Kospi index surged 8.4% after Samsung Electronics and labor unions reached an agreement that avoided a potentially costly strike.

Samsung shares climbed 8.5%, while AI-related chipmaker SK Hynix jumped 11.2% because of its partnership with Nvidia.

Japan’s Nikkei 225 also gained 3.1%.

However, Chinese markets struggled, with indexes falling 1% in Hong Kong and 2% in Shanghai as investors weighed global economic risks and slowing regional growth.

Read more business news