US markets closed mixed on Thursday after Nvidia shares plunged
US stocks closed lower on Thursday, February 27, with Nvidia shares falling more than 5% despite the company reporting strong fourth-quarter revenue and earnings results, marking its worst daily performance since April.
The S&P 500 fell 0.54% to 6,908.86 points.
The Nasdaq Composite dropped 1.18% to 22,878.38 points.
The Dow Jones Industrial Average edged up slightly by 17.05 points, or 0.03%, to 49,499.20 points.
Shares of other chipmakers, including Broadcom, Lam Research, Western Digital, and Applied Materials, also declined. Fast Company's chief investment officer, Tom Graff, said the market is in "proof mode" and that Nvidia's results were not enough to convince investors, especially given concerns about its deal with OpenAI.
Mixed Performance for Software Sector
On the other hand, Salesforce shares rose 3% after strong quarterly results, but the company offered weak guidance for fiscal year 2027 revenue, raising concerns about its future in light of the rapid advancements in artificial intelligence. Main Street Research's chief investment officer, James Demert, said Salesforce's earnings were good, but the weak guidance reflects future challenges, although the decline in software stocks may be overdone.
Gains in Other Sectors
Shares of financial, energy, and real estate companies rose, including JPMorgan Chase, Exxon Mobil, and CBRE. The iShares software fund gained 1%, but it remains in bear market territory after losing about 30% from its recent high.
Artificial Intelligence Concerns
Concerns about the impact of artificial intelligence technologies on software and cybersecurity companies continue to weigh on markets, as investors fear that the advanced capabilities of these products could disrupt traditional businesses.
