Newscasts - Wall St ends lower as AI fervor wanes after Nvidia results

The J. M. Smucker

27/02/2026 24:05

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Source: 'Reuters - Business videos'

Description: U.S. stocks turned sharply lower on Thursday, the day after earnings from artificial intelligence vanguard Nvidia failed to impress investors, weighing down technology shares which have provided muscle to the recent rally. Lisa Bernhard has more.

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Video Transcript:

US stocks closed mostly lower on Thursday, with the Dow ending essentially flat, the S&P 500 shedding more than 0.5% and the NASDAQ falling more than 1%. NVIDIA's fourth-quarter results, posted after Wednesday's closing bell, were better than analysts expected, but the world's richest company by market cap wrestled with increasingly difficult year-over-year comparisons as its revenue growth decelerates. Its shares ended 5.5% lower. Eric Diton is President and Managing Director of The Wealth Alliance.

Let's be clear, earnings up 94%. Let’s be clear. This is a $5 trillion company. When you get big, you're supposed to slow down. You can't keep growing that fast, right the law of big numbers. They continue to crush it. Data center revenue up 75%. Gross margin expanded, went up to 75%, revenues up 73% sequentially, up 20%. These are numbers that are virtually unheard of. And yes, the stock is down over 5%. What is going on? Is this as good as it gets? That's what the market is asking.

Among other movers, shares of Jack Dorsey's Block soared more than 25% in extended trading after the payments firm said it will cut over 4,000 jobs, nearly half its workforce, as advances in AI reshape how it builds and runs its business. Outside of tech, shares of J.M. Smucker surged nearly 9% on the packaged food company's solid quarterly profit and sales estimates.