US stocks turned sharply lower on Thursday, February 26, 2026, as disappointing earnings from Nvidia, a leader in the artificial intelligence (AI) sector, weighed heavily on technology shares that had previously fueled a market rally.
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detroitnews.comThe Philadelphia Semiconductor index dropped 3.2%, dragging down the tech-heavy Nasdaq Composite, which lost 1.2%.Meanwhile, a pivot back to cyclical sectors helped keep the Dow Jones Industrial Average nominally higher, with a modest increase of 17.05 points, or 0.03%, to close at 49,499.20.
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gvwire.comDespite the Dow's gains, both the S&P 500 and the Nasdaq are poised to close lower for the month, reflecting broader market concerns.
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businesstimes.com.sgNvidia's fourth-quarter results, released after Wednesday's market close, exceeded analysts' expectations, yet its shares fell by 5.5% as the company grappled with challenging year-on-year comparisons and slowing revenue growth.
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gvwire.combusinesstimes.com.sgMichael Green, chief strategist at Simplify Asset Management, commented that the situation felt like an "Nvidia hangover" specifically affecting the AI sector, suggesting that the S&P 500 is being dragged down by Nvidia and other major tech stocks.
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detroitnews.comInvestors have been wrestling with uncertainties surrounding the immense costs and potential disruption posed by emerging AI technologies.This unease has led to a volatile trading environment, particularly for technology shares, which have experienced significant fluctuations recently.
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gvwire.comAmong the 11 major sectors of the S&P 500, technology and communication services faced the steepest percentage losses, while financials led the way with a 1.3% rise, buoyed by strong performances from major banks such as JPMorgan Chase, Bank of America, and Wells Fargo.
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gvwire.combusinesstimes.com.sgDespite the overall downturn in tech stocks, the S&P 500 software and services index managed a 1.4% gain, thanks to a 4.0% increase in Salesforce shares, even as the company provided weaker-than-expected revenue guidance.
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detroitnews.comConversely, Trade Desk saw a significant decline of 4.8% following a disappointing revenue forecast amid increasing competition from larger rivals.
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businesstimes.com.sgIn other market movements, JM Smucker shares surged by 8.8% after the packaged food company reported solid quarterly profit and sales estimates.In contrast, C3.ai experienced a dramatic drop of 18.5% after providing a weaker-than-expected sales forecast and announcing a substantial workforce reduction of 26%.Meanwhile, Celsius Holdings saw its shares jump by 6.9% after beating quarterly revenue estimates.
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gvwire.comOn the NYSE, advancing issues outnumbered decliners by a 1.41-to-1 ratio, with 444 new highs and 71 new lows recorded.The Nasdaq also saw a similar trend, with 2,439 stocks rising against 2,237 that fell.
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businesstimes.com.sgAs trading volume on US exchanges reached 19.55 billion shares, slightly below the 20.31 billion average for the past 20 trading days, the market's overall sentiment remained cautious in light of the recent developments.
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detroitnews.comIn summary, Thursday's trading session highlighted the fragility of the current market rally, especially within the technology sector, as Nvidia's disappointing results prompted a reevaluation of the growth prospects for AI-related stocks.
