Stocks Fall Sharply as Nvidia’s Selloff Tops 8%: Markets Wrap
A selloff in the stock market’s most-influential group drove the Nasdaq 100 to its lowest level since November as Nvidia Corp.’s results failed to revive the artificial-intelligence rally. The S&P 500 fell 1.6%, erasing its gains for 2025. Mega caps bore the brunt of the selling as good-but-not-great numbers from Nvidia Corp. disappointed investors.
Stocks tumble, deepening February’s decline, as Trump affirms tariffs coming and Nvidia dives 8%
The S&P 500 fell during a volatile session, after President Donald Trump’s declaration that tariffs on Canada and Mexico would proceed as planned, as well as a negative reversal in bellwether stock Nvidia following earnings. The S&P 500 closed down 1.59% at 5,861.57. The broad market index remains in the red for the week and month. The Nasdaq Composite pulled back 2.78%, to end the day at 18,544.42, with Nvidia’s 8.5% slide pulling the tech-heavy index lower. The Dow Jones Industrial Average lost 193.62 points, or 0.45%, to finish at 43,239.50. Both the broad market index and the tech-heavy Nasdaq are on pace for their worst week since September 2024.
US economic growth slows in fourth quarter
U.S. economic growth slowed in the fourth quarter, the government confirmed on Thursday, and the loss of momentum appears to have persisted early this quarter amid cold temperatures and concerns that tariffs will hurt spending through higher prices. Gross domestic product increased at a 2.3% annualized rate last quarter after accelerating at a 3.1% pace in the July-September quarter, the Commerce Department’s Bureau of Economic Analysis (BEA) said in its second GDP estimate for the fourth quarter on Thursday. Economists polled by Reuters had expected that GDP growth would be unrevised. GDP growth was revised up by less than 0.1 percentage point, which after rounding matched the 2.3% rate that was estimated last month. Upgrades to government spending and exports were partly offset by downward revisions to consumer spending and investment. Nonetheless, consumer spending, which accounts for more than two-thirds of the economy, grew at a 4.2% rate last quarter after rounding, matching the previously estimated pace.
America’s appetite for gold is ‘sucking’ bullion out of other countries
More than 600 tons, or almost 20 million ounces of gold, has been transported into vaults in New York City since December last year, according to data provided by the World Gold Council. The threat of tariffs on gold has spurred U.S. banks, investors and traders to shift the precious metal into the Commodities Exchange Centre and other vaults in New York, when it would otherwise usually be stored in London. “Supply chains have been disrupted because of this huge sucking sound, which has been the United States importing gold ahead of the potential tariffs,” said the World Gold Council’s John Reade.
Private Credit ETF From State Street, Apollo Raises SEC Concern
The US Securities and Exchange Commission expressed concerns over a much-anticipated private credit exchange-traded fund from Wall Street giants State Street Corp. and Apollo Global Management Inc., asking the firms for more information in a letter Thursday.
Oil heads for first monthly drop since November as economic uncertainty weighs
Oil prices eased on Friday, heading for their first monthly drop since November, as uncertainty over global economic growth and fuel demand from Washington’s tariff threats and further signs of a U.S. economic slowdown outweighed supply concerns. The more active May Brent crude futures slipped31 cents, or 0.4%, to $73.26 a barrel by 0133 GMT, while U.S. West Texas Intermediate crude was at $70.05 a barrel, down 30 cents, or 0.4%. Front-month Brent expires later on Friday.
Japan to crack down on booming market for JGB-backed loans
Japan’s financial regulator plans a sweeping crackdown on ¥10 trillion ($67 billion) of high-yield loans backed by government bonds and other assets that have gained popularity among regional banks even after officials warned about their risks. The Financial Services Agency will scrutinize banks that have increased purchases of Japanese government bonds that are repackaged into loans over the past year, said Toshinori Yashiki, director-general of the agency’s strategy development and management bureau.
Trump Backs US-UK Trade Talks After Meeting with Starmer
President Donald Trump said he would restart long-stalled negotiations on trade with the UK, as British Prime Minister Keir Starmer heralded a “new economic deal” between the two countries. Trump said during a joint press conference with Starmer on Thursday in Washington that a deal could happen “very quickly” to help the UK avoid being swept up in in his oft-threatened tariffs.
Core inflation in Japan’s capital slows but stays above BOJ target
Core consumer prices in Japan’s capital rose 2.2% in February from a year earlier, data showed on Friday, slowing for the first time in four months due to revived energy subsidies but remaining well above the central bank’s 2% target. The persistently high inflation will likely support the case for the central bank to continue its monetary policy tightening campaign. “The slowdown mainly reflect reinstated subsidies to curb electricity and gas bills, but the underlying trend hasn’t changed with food prices remaining high,” said Kazutaka Maeda, an economist at Meiji Yasuda Research Institute. “This underlying trend will justify further rate hikes by the BOJ,” he added. The increase in the core consumer price index (CPI), which excludes volatile fresh food costs, was slower than a median market forecast of 2.3% and a 2.5% gain in January. A separate index that strips away the effects of both fresh food and fuel costs, closely watched by the BOJ as a broader price trend indicator, rose 1.9% in February from a year earlier, advancing at the same pace as the previous month.
Tokyo Inflation Slows a Tad More Than Expected on Subsidy Impact
Inflation in Tokyo slowed more than expected as government subsidies meant to offset energy costs distorted readings, a result that isn’t likely to deter the central bank from considering more hikes to its benchmark interest rate.
Meta plans to release standalone Meta AI app in effort to compete with OpenAI’s ChatGPT
Meta plans to debut a standalone AI app during the second quarter, according to people familiar with the matter. The Meta AI app marks a major step in CEO Mark Zuckerberg’s plan to make his company the leader in AI by the end of the year, ahead of competitors such as OpenAI and Alphabet, the people said. Meta also plans to test a paid subscription service for Meta AI, taking a cue from OpenAI’s monthly fees for access to more powerful versions of ChatGPT, the people said.
Dell forecasts $15 billions of AI server sales this year
Dell missed on sales but beat on earnings for the fourth quarter. The company said it sold about $10 billions of AI-optimized servers in its fiscal 2025 and expects to sell about $15 billion in AI system in the current year.
Bitcoin hits over 3-month low, reversing gains post Trump election
Bitcoin was trading at about $80,500 in early trading in Asia, down 3.45% on the day and nearly 25% lower than an all-time high hit in mid-December. The rout reverses gain in the digital asset’s price that followed the election victory of U.S. President Donald Trump.
Rolls-Royce shares soared 15.9% to a fresh record as the jet-engine maker’s results beat estimates and the outlook was upgraded.
Analysts also welcomed the launch of a £1b buyback starting immediately. Jefferies (buy): Chloe Lemarie says this strong beat opens an era of cash returns for company. Compared to consensus, 2H is 16% ahead on op. profit and free cash flow is 18% ahead. The beat is driven by all divisions. Notes the 2025 guide delivers the group’s previous 2027 targets two years ahead of schedule. Morgan Stanley (overweight): Analyst Ross Law says Rolls has “yet again surprised to the upside”. FY24 results are a beat, FY25 guidance is ahead and implies the 2027 CMD targets being achieved two years earlier than planned. The beat and raise narrative continue, with FY28 FCF target the standout.
Salesforce shares fell 4% after it gave a fiscal-year revenue forecast that fell short of estimates, dimming optimism that the company’s new AI product would spur faster sales growth.
Revenue will be $40.5 billion to $40.9 billion in the year ending January 2026, the company said. Analysts, on average, estimated $41.5 billion. Adjusted operating margin will be about 34% compared with an average analyst estimate of 33.9%. The top maker of customer management software has focused on pushing “Agent force,” which is meant to complete tasks such as customer service without needing direction from a person. The new product is expected to create a modest contribution to revenue in fiscal year 2026 and a “more meaningful” contribution in the following year, Chief Financial Officer Amy Weaver said.
Shares of Snowflake rose 4.5% after the company projected better-than-expected revenue growth for the fiscal year, sending an optimistic signal about the adoption of its recently launched products for artificial intelligence.
Product revenue, which makes up the bulk of Snowflake’s business, will increase about 24% to $4.28 billion in the year ending January 2026, the company said. Analysts, on average, estimated $4.23 billion. Snowflake makes software to ingest and analyse data from a variety of sources. Over the last year, Chief Executive Officer Sridhar Ramaswamy has pushed the company to introduce additional AI products and make it easier to use large language models on data stored in Snowflake’s platform. The company announced an agreement to let customers access OpenAI’s models directly through its system, similar to an arrangement with AI startup Anthropic unveiled in November.
Vistra shares fell 12.3% as the independent power producer said it would keep two battery facilities offline following a fire and as analysts critiqued a lack of detail on potential data center deals.
The drop comes even as fourth quarter adjusted Ebitda beat consensus expectations. Jefferies, Julien Dumoulin-Smith (buy; PT $167): Results were a “small positive update but no mention of data centre in the earnings release or presentation,” which remains “the top question” for the company. Notes adjusted Ebitda results for the fourth quarter include $545 million in production tax credits “which was not included in guidance”. Evercore ISI, Durgesh Chopra (outperform; PT $202): The fourth- quarter results are “relatively neutral”. Notes fourth-quarter Ebitda beat, while guidance was re-affirmed. FOURTH QUARTER RESULTS: Adjusted Ebitda $1.93 billion, estimate $1.54 billion.
EBay projected sales for the current quarter that missed analysts’ estimates, guidance that CEO Jamie Iannone attributed to soft demand in Germany and the UK.
Shares fell 8.2%. Revenue will be $2.52 billion to $2.56 billion in the period ending in March, the company said. Profit, excluding some items, will be as much as $1.36 a share. Analysts, on average, estimated sales of $2.6 billion and per-share earnings of $1.33. The outlook overshadowed a strong holiday quarter, with revenue of $2.6 billion and profit of $1.25 per share exceeding analysts’ estimates. In an effort to stem its eroding market share, eBay has been focusing on narrow categories such as car parts, luxury goods and collectibles.
Engie shares rose 5.3% as it said profit this year and next will fall less than previously expected after it ramped up investments in electricity assets and slashed costs.
The French utility has been expanding in wind, solar and battery storage. It’s scaling back exposure to fossil fuels as Europe’s energy shift accelerates, even with the pace of the transition in the US thrown into doubt. The company forecast net recurring income of €4.4 billion to €5 billion in 2025, compared with average analyst estimates of €4.33 billion. Engie reported a 3.1% increase in 2024 profit to €5.5 billion, slightly beating analyst estimates. Beyond a strong contribution from hydro and other renewables assets, it benefited from the end of a windfall tax on nuclear generation in Belgium, and robust results at its network and retail operations.
