US stocks fell on Thursday morning as investors reacted to NVIDIA’s earnings and reassessed the outlook for artificial intelligence-linked valuations. The decline came even after NVIDIA reported better-than-expected results, as traders focused on whether AI spending can stay strong enough to support recent gains in large technology stocks.
By late morning in New York, the S&P 500 dropped 0.8%, while the NASDAQ 100 fell 1.5%. The Dow Jones Industrial Average held near flat. Treasury prices rose, which pushed the 10-year US yield down three basis points to 4.03%. Bitcoin and Ether also moved lower, which showed a wider risk-off move across growth-sensitive assets.
The main pressure came from technology and communication services shares. NVIDIA shares fell about 5%, despite strong earnings and upbeat guidance. Market participants had expected a stronger stock reaction from the company that has led much of the AI trade. Instead, the decline signaled caution around future growth assumptions.
The session reflected a broader valuation reset in AI-linked stocks. Investors continued to question how long companies can sustain heavy spending on chips, data centers, and software infrastructure. At the same time, some software names held up better. Snowflake rose 3.7% after analysts responded positively to its earnings and AI-related outlook, while Salesforce’s long-term guidance and buyback announcement helped ease some concern in software.
Market breadth looked mixed. A large number of S&P 500 stocks rose, yet the index still fell because mega-cap tech names carried more weight. This pattern suggested selective selling, not a broad liquidation. Traders appeared to rotate capital away from crowded AI leaders and toward pockets of earnings strength or speculative growth.
Bond markets signaled a move toward safety as equities weakened. The US 10-year Treasury yield fell to 4.03%, while Germany’s 10-year yield slipped to 2.70% and the UK 10-year yield declined to 4.28%. The dollar stayed mostly steady, while the Japanese yen strengthened against the US dollar.
Commodities sent mixed signals. West Texas Intermediate crude rose 1.1% to $66.14 a barrel after geopolitical headlines linked to US-Iran talks and Iran’s uranium position lifted supply concerns. Energy stocks recovered from previous losses in oil. Gold also rose 0.4% to $5,185.38 an ounce, which aligned with a defensive tone in parts of the market.
Crypto assets moved lower alongside technology shares. Bitcoin fell 2.2% to $67,400.23, and Ether dropped 3.2% to $2,034.06. The parallel decline reinforced the view that traders reduced exposure to higher-volatility assets during the session. Even so, gains in some quantum names showed that capital still targeted high-beta opportunities with fresh catalysts.
US labor data added context but did not change the market’s direction. Initial jobless claims rose to 212,000 for the latest week, up from 208,000, but the figure stayed below expectations. The data pointed to a labor market that remains stable, with low layoffs but slower momentum.
Investors also watched a busy earnings calendar. After the close, attention turned to CoreWeave, Autodesk, Dell Technologies, Intuit, and Rocket Cos. Market participants continued to reward strong execution and penalize weak guidance. This pattern remained visible across technology, media, automotive, and consumer names.
NVIDIA (NVDA): Shares fell about 5% despite better-than-expected results and bullish guidance.
Snowflake (SNOW): Stock rose 3.7% after positive analyst reaction to earnings and AI prospects.
IonQ (IONQ): Shares surged 18% after better-than-expected revenue and strong management commentary.
eBay (EBAY): Stock gained 3.8% after the company announced a 6% workforce reduction.
Salesforce (CRM): strong long-term sales outlook and a large buyback helped support sentiment.
Warner Bros. Discovery (WBD): Reported lower fourth-quarter sales and earnings.
Ford (F): Announced a recall of nearly 4.4 million vehicles, including F-Series pickups and SUVs.
Hertz (HTZ): Reported a wider-than-expected fourth-quarter loss.
JM Smucker (SJM): Added two directors under an agreement with Elliott Investment Management.
Celsius Holdings (CELH): Reported sales that more than doubled year over year after the Alani Nu acquisition.
CoreWeave (CRWV): Scheduled to report earnings after the market closes.
Dell Technologies (DELL): Scheduled to report earnings after the market close.
The day’s moves pointed to a repricing in parts of the AI trade, not a uniform market breakdown. Investors continued to favor companies with clear earnings support, while they reduced exposure to stocks with stretched expectations.
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