US equities retreated on Thursday, led by losses in semiconductor shares following Nvidia’s earnings release. The S&P 500 declined 1%, the Nasdaq 100 lost nearly 2%, and the more defensive Dow Jones Industrial Average slipped 0.4%.
Nvidia shares fell 5% even though the company beat expectations on both earnings and revenue and projected continued growth. The reaction highlighted mounting scrutiny of the tech sector, amid skepticism that capital expenditure on AI computing infrastructure may be overestimated. Other chipmakers, including Broadcom, Micron, Intel, and Applied Materials, dropped between 5% and 7%.
By contrast, Salesforce gained 3% after issuing a cautious sales outlook for its next fiscal year. Software-as-a-service providers have also come under increased scrutiny this month, as rapid advances in AI automation tools fuel concerns that parts of the sector could be disrupted.
Elsewhere, Warner Bros. Discovery edged lower after reporting weaker sales, underscoring ongoing challenges as the company weighs potential takeover approaches from Netflix and Paramount.
