Nvidia, highlighting disappointing profit forecasts, falls 8.5%… Broadcom and AMD also plunge
(New York = Yonhap News) Correspondent Lee Ji-heon = Concerns over the earnings outlook of Nvidia, a leading player in AI chips, along with fears of an expanding “tariff war,” caused the New York Stock Exchange to close lower on the 27th (local time).
On this day, the Dow Jones Industrial Average closed at 43,239.50, down 193.62 points (-0.45%) from the previous session. The S&P 500 Index fell 94.49 points (-1.59%) to 5,861.57, while the tech-heavy Nasdaq Index dropped 530.84 points (-2.78%) to close at 18,544.42.
Initially, the New York Stock Exchange maintained upward momentum throughout the morning, suggesting a break from the recent market decline triggered by recession fears. However, as Nvidia, which began the day with gains, expanded its losses in the afternoon, leading major tech stocks to turn bearish, it placed downward pressure across the indices.
Nvidia highlighted disappointing future profit forecasts in its quarterly results released after the market closed the previous day, overshadowing positive revenue projections. This expanded its losses in the afternoon, ultimately closing with an 8.5% drop.
Scott Welch, Chief Investment Officer at Stewart & Smith, assessed, “Nvidia’s earnings were good, but not at the overwhelming level we’ve previously seen.”
Other semiconductor stocks also saw significant declines, with Broadcom down 7.11% and AMD down 4.99%. The Philadelphia Semiconductor Index plummeted 6.09% on that day.
The reemergence of tariff war concerns amid fears of an economic slowdown also heightened market uncertainty.
U.S. President Donald Trump announced that if the synthetic drug problem entering the U.S. is not resolved or significantly improved, he would proceed with imposing the deferred 25% tariffs on Canada and Mexico on March 4th. He also declared the imposition of an additional 10% tariff on China on the same day.
Michael Green, Chief Strategist at Simplify Asset Management, said, “We are witnessing inflation concerns turn into growth concerns,” adding, “This is leading to worries that stock prices may at best remain sideways or decline.”