Stock Market Today: Stocks end mixed as Nvidia beats Wall Street's forecasts
Nvidia could provide a key catalyst to a market that continues to lag its European peers this year.
Updated at 4:40 PM EST by Rob Lenihan
Stocks ended mixed Wednesday trading, as AI-chip maker Nvidia beat Wall Street's earnings expectations.
The Dow Jones Industrial Average lost 188.04 points, or 0.43%, to finish the session at 43,433.12, while the S&P 500 rose 0.01% to close at 5,956.06 and the tech-heavy Nasdaq rose 0.26% to finish the day at 19,075.26.
AI chipmaking heavyweight Nvidia reported fourth-quarter earnings after the bell that beat Wall Street expectations and the company provided strong guidance for the current quarter.
Nvidia reported net income of 89 cents per share, up from 49 cents a year ago and beating Wall Street’s call for 84 cents per share a year ago.
Revenue in the quarter rose 78% to $39.33 billion, exceeding forecasts $38.05 billion.
Nvidia expected about $43 billion in first-quarter revenue, plus or minus 2%, compared with forecasts of $41.78 billion.
Shares were flat at last check.
Updated at 12:52 PM EST
Game time
Nvidia shares are powering higher into its fourth quarter earnings report after the close, with investors braced for big potential after-market swings in the world's third most-valuable stock.
Options traders expect a 7.7% swing, in either direction, for Nvidia's share price in the wake of its Wednesday report, which based on the stock's $3.4 trillion market value could result in gains or losses of around $280 billion.
Nvidia is the bellwether and market-darling stock that is of vital importance to the broader markets," said Chris Brigati, chief investment officer at SWBC, an investment firm based in San Antonio.
"Its performance provides meaningful guidance for the broader market tone," he added. "The importance for the tech sector cannot be understated as the use of its chips are paramount for use in AI and related technology businesses."
Related: Nvidia earnings: 5 things to watch in the tech giant's crucial update
Updated at 11:10 AM EST
Tesla tumult
Tesla shares extended their 2025 retreat, following on from one of the worst declines since last October amid slumping global sales and brand erosion tied to the political activities of CEO Elon Musk.
The group's market value fell below the $1 trillion mark last night, but are still some 19% higher than they were prior to President Trump's election on November 4.
Tesla shares were last marked 1.25% lower in late-morning trading and changing hands at $298.94 each, a move that extends the stock's year-to-date decline past 21%.
Related: Analyst revisits Tesla stock price target amid uncertainty
Updated at 9:37 AM EST
Mixed open
The S&P 500 was marked 14 points, or 0.21% higher in the opening minutes of trading, with the Nasdaq rising 74 points, or 0.39%.
The Dow was little-changed from last night's close while the mid-cap Russell 2000 gained 11 points, or 0.49%.
"The stock market continues to churn amid mixed earnings and concerns about a slowing economy and consumer confidence," said Daniel Skelly, head of Morgan Stanley's Wealth Management Market Research & Strategy Team.
"So far, though, the S&P 500’s biggest pullback of the year is just that—a pullback," he added. "But there are certainly signs of market rotation, including the fact that, right now, there isn’t a single Magnificent 7 stock among the S&P 500’s top-20 percentage gainers so far this year."
S&P 500 Opening Bell Heatmap (Feb. 26, 2025)$SPY +0.28%
