Nvidia Fails to Reassure—Heard on the Street Thursday Recap

Nvidia’s shares fell 5.5% despite record income as investors continue to set a high bar for AI bellwethers. One problem, notes Heard columnist Dan Gallagher, is that the company’s runaway success could be seen as a sign of destabilization to come, given that the capital spending filling its coffers is financially weakening some of the world’s largest companies, from Amazon to Microsoft. The Nasdaq and S&P 500 declined following Nvidia's slide, while the Dow Jones Industrial Average was little changed and Treasury yields inched lower.