The S&P 500 and the Nasdaq slipped on Thursday, as concerns over a potential artificial intelligence (AI) bubble continue to weigh despite Nvidia’s stellar earnings.
At 10:11 a.m. ET, the Dow Jones Industrial Average rose 121.68 points, or 0.25%, to 49,603.83, the S&P 500 lost 25.72 points, or 0.37%, to 6,920.41 and the Nasdaq Composite lost 201.10 points, or 0.87%, to 22,950.98.
At the opening bell, the Dow Jones Industrial Average rose 62.4 points, or 0.13%, to 49,544.58. The S&P 500 fell 1.4 points, or 0.02%, to 6,944.74, while the Nasdaq Composite dropped 51.5 points, or 0.22%, to 23,100.583.
Nvidia Corp, currently leading the global artificial intelligence revolution, announced fourth quarter earnings, surpassing market expectations. The prominent chipmaker also provided a first quarter forecast that significantly exceeded average analyst projections, following a remarkable 73% increase in its fourth quarter revenue.
During an earnings call on Wednesday, Nvidia Chief Executive Officer Jensen Huang addressed industry skepticism regarding sustainable growth. He argued that the perceived risks are overstated because clients are already generating significant returns from their newly integrated computing capabilities.
“You need compute capacity, and that translates directly to growth, and that translates directly to revenues,” Huang said. “I’m confident their cash flows are growing.”
“Investors have been wary of the AI trade and its implications as we look out over the next couple of years and even though Nvidia did deliver strong numbers, it wasn’t enough to convince investors to push the stock higher,” said Jeff Schulze, head of economic and market strategy at ClearBridge Investments, according to Reuters.
On the economic data front, a report showed that the number of US jobless claims rose last week.
In the bond market, the yield on the 10-year Treasury fell to 4.03% from 4.05% late on Wednesday.
Key Stock Movers
Shares of big banks including JPMorgan Chase, Bank of America and Wells Fargo gained nearly 1% each.
Trade Desk stock fell 6% after the advertising technology company forecast first quarter revenue below estimates.
J.M. Smucker shares climbed 6.6% after the firm beat third quarter profit and sales expectations.
Celsius Holding stock soared 14.3% after the energy drink maker reported fourth quarter revenue above analysts’ estimates.
C3.ai shares slumped 16.7% after the software provider current quarter sales forecast fell short of estimates.
Bullion Market
Gold prices declined on Thursday as investors focused on the third round of US-Iran nuclear talks in Geneva.
At 9:19 a.m. ET (1419 GMT), spot gold edged down 0.1% at $5,165.77 per ounce. US gold futures for April delivery were down 0.8% at $5,182.10.
Elsewhere, spot silver shed 2.8% to $86.94 per ounce. Spot platinum slid 1.6% to $2,249.40 per ounce, while palladium lost 1.6% to $1,766.95.
Crude Oil
Global oil prices experienced a notable decline on Thursday, as the market reacted to data showing the biggest jump in US crude inventories in three years, while traders assessed US-Iran talks
By 1351 GMT, Brent crude futures fell 95 cents, or 1.3%, at $69.90 a barrel. WTI futures lost $1.06, or 1.6%, to $64.36.
