U.S. stock futures slipped early Thursday as Nvidia’s earnings jolt rippled through global markets, sending the Nasdaq and S&P 500 lower while the Dow held slightly positive.

Despite beating Wall Street estimates on both revenue and profit, Nvidia’s weaker data center sales and cautious outlook on China sparked doubts about whether the AI boom can keep powering growth at the same pace.

The reaction underscored just how much influence Nvidia holds over broader equity sentiment, with tech-heavy indexes showing the sharpest pullback as investors reassessed lofty valuations avcross the sector.

How did major US stocks perform today?

• Dow Jones Industrial Average: Slight gain, showing resilience amid tech weakness.
  
  
• Nasdaq 100: Fell noticeably, dragged down by Nvidia and broader tech sector pressure.
  
  
• S&P 500: Pulled back modestly, reflecting sensitivity to large-cap tech earnings.
  
  
• Russell 2000: Slight decline, reflecting small-cap exposure to tech and growth sentiment.
  
  
• Major tech names: Nvidia, AMD, and other AI-related stocks led the Nasdaq selloff.
  
  
• Financial and industrials: Provided stability, helping Dow futures hold steady despite broader market caution.

Did Nvidia really beat expectations?

Nvidia’s quarterly earnings once again outpaced analyst forecasts. Revenue came in strong, and profits easily beat Wall Street’s consensus. On the surface, it looked like another blockbuster report from the AI chip giant.

ALSO READ: Nvidia stock tanks — what went wrong despite beating Wall Street’s earnings expectations?

But markets don’t just trade on the past — they trade on expectations. Despite the solid numbers, Nvidia’s shares slipped in after-hours trading. The reason? Investors spotted cracks in the growth story.

The company’s data center division, the powerhouse of its AI-driven expansion, showed softer results than expected. At the same time, executives struck a cautious tone on China, warning that export restrictions on high-end chips were beginning to weigh on sales. For traders who had priced Nvidia for near-perfection, this was enough to trigger doubt.

Why does Nvidia’s performance move the entire market?

Few companies hold as much sway over the stock market as Nvidia. It’s not just another tech stock — it’s the face of the AI revolution, a key driver of the Nasdaq 100, and one of the most valuable companies in the world.

That’s why the earnings reaction rippled beyond Nvidia itself:

• Nasdaq futures dropped, as traders questioned whether the AI trade has already peaked.
  
  
• S&P 500 futures edged lower, reflecting concern across tech-heavy sectors and peer companies like AMD, Broadcom, and major cloud players.
  
  
• Dow futures bucked the trend, managing slight gains thanks to its mix of industrials and financials, which are less tied to AI-driven volatility.
  
  

In short, Nvidia’s numbers raised a broader question: can AI growth alone keep driving stock indexes higher, or is Wall Street finally reaching a tipping point on valuations?

What does the futures market tell us right now?

The divergence between the indexes after Nvidia’s earnings offers an important signal.

• Nasdaq futures remain the most exposed. When Nvidia struggles, tech stocks often fall in sympathy, amplifying downside risk.
  
  
• S&P 500 futures are showing mild pullback. This reflects Nvidia’s sheer size in the index and the spillover effect on other tech leaders.
  
  
• Dow futures are holding steadier. The more defensive composition of the Dow means it could outperform if investors rotate into value-oriented names.
  
  

For investors, this means volatility may cluster in technology and semiconductor plays, while more traditional sectors see relative stability.

Why is China such a big factor in Nvidia’s outlook?

During the earnings call, Nvidia’s warning on China stood out. U.S. export controls on advanced GPUs have started to bite, and the company admitted this would limit future sales in one of its largest markets.

Why does this matter?

• China has been one of Nvidia’s biggest customers, especially for AI training chips and cloud infrastructure.
  
  
• If restrictions intensify, Nvidia could lose a significant slice of its growth pipeline.
  
  
• Competitors in regions outside of U.S. policy reach may step in to capture demand.
  
  

For investors, this isn’t just about quarterly revenue. It raises deeper questions about the stability of the global AI supply chain and how geopolitics can shape corporate growth.

How are global markets reacting to Nvidia’s report?

The shockwaves from Nvidia’s cautious guidance didn’t stay in the U.S. Asia-Pacific markets followed Wall Street lower, with semiconductor-heavy economies like Japan and South Korea particularly sensitive to the news.

European futures also suggested a softer open. Traders there are asking the same question investors in New York are wrestling with: if Nvidia — the undisputed leader of the AI boom — is flashing warning signs, how sustainable is the sector’s valuation?

This spillover shows that Nvidia is no longer just a company story. It’s a global sentiment barometer for technology, AI, and risk appetite.

Which stocks are leading the market today?

• Nvidia (NVDA): Despite beating earnings estimates, shares fell after-hours due to weaker data center growth and cautious guidance on China sales, pulling Nasdaq futures down.
  
  
• Apple (AAPL): Showing modest gains, supported by steady iPhone and service segment performance, helping stabilize tech sentiment.
  
  
• Microsoft (MSFT): Slight decline as investors reassess cloud growth projections in light of Nvidia’s AI-related caution.
  
  
• AMD (AMD): Dropped in sympathy with Nvidia, reflecting sector-wide concerns about semiconductor demand and AI spending.
  
  
• Dow leaders (e.g., JPMorgan, Boeing): Contributed to Dow’s stability, with financials and industrials offsetting tech weakness.
  
  
• Tesla (TSLA): Minimal movement, with investor focus shifting to tech earnings and AI sector implications.

Should investors worry about AI stocks now?

The pullback in Nvidia doesn’t necessarily mean the AI trade is over. The company remains immensely profitable and still leads the chip market. But the report forces investors to confront whether the AI boom can keep delivering uninterrupted growth.

For short-term traders, the earnings release means volatility is likely to remain elevated, especially in Nasdaq futures and semiconductor ETFs. For long-term investors, the question is whether this is a temporary cooling period or the beginning of a more mature growth phase for AI stocks.

What key signals should investors watch next?

Several upcoming indicators will help answer whether Nvidia’s stumble is an isolated event or part of a larger shift:

• Data center spending – Will demand for AI infrastructure rebound, or are companies pulling back on budgets?
  
  
• China policy changes – Any new U.S. export controls or trade adjustments will directly affect Nvidia’s international sales.
  
  
• Competitor performance – Earnings from AMD, Intel, and hyperscale cloud providers will show whether weakness is industry-wide.
  
  
• Market rotation trends – If investors move money out of high-growth tech, watch whether industrials, energy, and financials start to outperform.
  
  

What does this mean for the stock market today?

Nvidia’s latest earnings highlight a paradox. The company beat forecasts, yet its stock slid because expectations were simply too high. That disappointment pulled Nasdaq and S&P 500 futures lower, while the Dow managed to hold ground.

This isn’t just a one-day hiccup. It’s a test of whether the AI-fueled rally that has powered markets for the past year can keep momentum in the face of softer growth signals and geopolitical uncertainty.

FAQs:

1: Why did US stock futures fall after Nvidia’s earnings?
Futures slipped because Nvidia’s weaker data center revenue and cautious China outlook raised doubts about continued AI-driven growth, pressuring Nasdaq and S&P 500.

2:Why did the Dow stay resilient while Nasdaq fell?
The Dow is less exposed to tech stocks and more weighted toward industrials and financials, making it steadier when tech-led selloffs hit the Nasdaq.