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Live Updates: Nasdaq Composite Falls After NVDA Earnings

Gerelyn Terzo

Published: February 27, 2025 10:34 am

Last Updated: February 27, 2025 4:14 pm

Live Updates

Live Coverage Has Ended

February's Losses Widen

4:08 pm by Gerelyn Terzo

Not even Nvidia could save the markets today, with all three of the major stock market indices headed lower. The Nasdaq Composite is suffering the worst of the declines with a precipitous 2.4% drop followed by the S&P 500’s 1.4% loss. President Trump’s reinforcement of tariff warnings triggered the sell-off, sending shares of Nvidia spiraling by nearly 8% despite a Q4 earnings report that beat consensus estimates on the top and bottom lines.

Wall Street was quick to respond to Nvidia’s earnings, making bullish calls as the stock price sank. Among them, Bank of America lifted its price target on the stock by 5% to $200 per share. Morgan Stanley increased its price target on the shares by about 6.5% to $162. Truist analysts raised their price target by $1 to $205 per share.  BofA and Truist each have “buy” ratings on the stock while Morgan Stanley rates it an “overweight.” With today’s declines, Nvidia’s market cap has slipped below the $3 trillion threshold.

The Nasdaq is being pressured by Super Micro Computer (Nasdaq: SMCI), which is suffering a 16.5% drop after yesterday’s rally in the shares. Data center hardware company Super Micro said it has received confirmation from the Nasdaq that the company is back in good standing with the exchange.

Any gains the S&P 500 had for 2025 have now disappeared. Today’s sell-off widened the stock market’s losses for the month of February. Infrastructure Capital Advisors CEO Jay Hatfield told CNBC, “We’re in a stalled, range-bound, slightly irrational market as we wait for policy clarity.”

 

 

 

 

On the heels of Nvidia’s (Nasdaq: NVDA) Q4 earnings beat, technology stocks have turned negative, including a nearly 1% drop in the Nasdaq Composite in a tariff-related sell-off. Despite its earnings blowout and rosy outlook, Nvidia shares are falling 3% as of mid-morning trading on tariff-related fears, pressuring the Nasdaq Composite while the Dow Jones Industrial Average and S&P 500 are seeing green.

Nvidia could be facing a potential 25% tariff on its chip sets. President Trump has made the tariffs official, with an early March start date for Mexico and Canada and a 10% levy on China. He has also placed a target on the EU with a potential 25% tariff on the 27-country bloc.

• Wall Street is responding to Nvidia’s strong quarter, with New Street Research analyst Antoine Chkaiban reportedly predicting that AI chip demand will catapult the company’s EPS to the $6 level.
• According to UBS analysts, “NVIDIA results reinforce AI growth opportunity.”

Here’s a look at the performance as of morning trading:

Dow Jones Industrial Average: Up 379.11 (+0.87%)
Nasdaq Composite: Down 58.24 (-0.29%)
S&P 500: Up 13.84 (+0.22%)

Market Movers

McDonald’s (NYSE: MCD) stock is up 1.5%. The stock is getting rewarded after the company announced that surcharges on its eggs are out of the question and that it would even introduce a value $1 McMuffin on its mobile app. MCD pays a dividend yield of 2.3% compared with the S&P 500’s average dividend yield of 1.27%.

Tesla (Nasdaq: TSLA) is extending its recent declines by another 1% amid a sell-off in the Magnificent 7 stocks. Apple (Nasdaq: AAPL) is getting caught in the selling pressure, as is Meta Platforms (Nasdaq: META). Amazon (Nasdaq: AMZN) is an outlier in the group and is making gains after introducing its very first chip for the quantum computing era.

Snowflake (NYSE: SNOW) is extending its gains that started after yesterday’s earnings print, advancing 9% on the day. The cloud-based storage company is soaring on its aggressive AI push and Wall Street’s bullish reaction. BTIG analysts have a “buy” rating on the stock with a $220 price target, describing Snowflake’s quarter as “a very good report.”