Wall St ends lower as AI fervor wanes after Nvidia results
Market Intelligence Analysis
AI-PoweredThe US stock market closed mostly lower on Thursday, with the S&P 500 and Nasdaq experiencing significant declines, following Nvidia's fourth-quarter results that, although better than expected, showed decelerating revenue growth. Nvidia's shares fell 5.49% despite impressive data center revenue and gross margin expansion. The market is questioning whether Nvidia's performance is as good as it gets.
Market impact analysis based on bearish sentiment with 85% confidence.
Article Context
STORY: U.S. stocks closed mostly lower on Thursday, with the Dow ending essentially flat, the S&P 500 shedding more than half a percent and the Nasdaq falling more than one percent.Nvidia's fourth-quarter results, posted after Wednesday's closing bell, were better than analysts expected, but the world's richest company by market cap wrestled with increasingly difficult year-over-year comparisons as its revenue growth decelerates. Its shares ended 5.49% lower.Eric Diton is president and managing director of The Wealth Alliance."Let's be clear. This is a $5 trillion company. When you get big, you're supposed to slow down. You can't keep growing that fast, right - the law of big numbers. They continue to crush it. Data center revenue up 75%. Gross margin expanded, went up to 75%, revenues up 73% sequentially, up 20%. These are numbers that are virtually unheard of. And yes, the (Nvidia) stock is down over 5%. What is going on? Is this as good as it gets? That's what the market is asking."Among other movers, shares of Jack Dorsey's Block soared more than 25% in extended trading after the payments firm said it will cut over 4,000 jobs, nearly half its workforce, as advances in AI reshape how it builds and runs its business.Outside of tech, shares of J.M. Smucker surged nearly 9% on the packaged food company's solid quarterly profit and sales estimates.
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