Tech Weakness Weighs on Indexes
The S&P 500 pulled back Thursday, declining 0.54% to close at 6,908.86, as earnings from Nvidia and Salesforce failed to spark a broader rally. The Nasdaq Composite dropped 1.18% to 22,878.38, while the Dow Jones Industrial Average edged up 17.05 points, or 0.03%, to finish at 49,499.20.
The divergence reflected ongoing volatility within the technology sector, even as parts of the broader market showed resilience.
Nvidia Slides Despite Earnings Beat
Shares of Nvidia fell more than 5%, marking the chipmaker’s worst session since April, despite posting quarterly results that topped expectations. The stock’s decline weighed heavily on the Nasdaq and semiconductor peers.
Other chipmakers also moved lower, including Broadcom, Lam Research, Western Digital and Applied Materials, as investors scrutinized growth sustainability and elevated valuation levels. Market analysts suggested the reaction underscores a broader shift toward stricter performance thresholds for high-growth AI-linked stocks.
Salesforce Gains but Guidance Disappoints
In contrast, Salesforce rose about 4% after delivering earnings and revenue above consensus forecasts. However, the company’s fiscal 2027 revenue outlook fell short of expectations, tempering enthusiasm and reflecting persistent investor caution toward enterprise software firms amid rapid AI innovation.
The software segment showed mixed dynamics. The iShares Expanded Tech-Software Sector ETF (IGV) gained roughly 2% on the day, though it remains down about 30% from recent highs, firmly in bear market territory.
Sector Rotation Offers Support
Outside of technology, gains in financials, energy and real estate helped cushion broader declines. Notable advancers included JPMorgan Chase and CBRE Group, highlighting selective strength across non-tech segments.
The session followed an upbeat performance earlier in the week, yet overall sentiment remains fragile. Persistent concerns about how artificial intelligence could disrupt traditional software and cybersecurity business models continue to shape investor positioning.
For now, markets appear caught between strong corporate earnings and heightened skepticism, particularly within technology, where expectations remain elevated and volatility acute.
