Dow Jones futures dropped slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market faced another tough session on Thursday, as Nvidia (NVDA) fell below key support levels following earnings, and President Donald Trump’s new tariff proposals added to the market’s concerns. SoundHound AI (SOUN) and Rocket Lab (RKLB) were the major earnings stories after the close, while the Federal Reserve’s preferred inflation gauge, the core PCE price index, is set for release on Friday morning.
Stock Market Struggles Amid Economic Concerns
The stock market endured another rough day on Thursday. Nvidia stock struggled after earnings results, falling below critical support levels, while President Trump’s tariff plans added uncertainty to the market. The Nasdaq hit a 2025 low, and both the Dow Jones and S&P 500 fell back from resistance at their 50-day lines.
Palantir Technologies (PLTR) also faced difficulties, falling below its 50-day line. Many growth stocks, including Palantir, are struggling to hold onto key levels.
Dow Jones Futures and Other Indices
Dow Jones futures fell 0.2%, while S&P 500 futures declined by 0.2% and Nasdaq 100 futures dropped 0.3%. The 10-year Treasury yield decreased slightly to 4.23%. Bitcoin also saw a significant drop, falling below $81,000, continuing its sell-off.
The Commerce Department will release the core PCE price index at 8:30 a.m. ET on Friday, providing investors with insights into inflation, part of the January income and spending report.
Note: Overnight action in Dow futures and other indices doesn’t always reflect actual trading in the following market session.
Earnings Results and Stock Movements
Several companies released earnings after the market closed, including SoundHound, Rocket Lab, and Duolingo (DUOL).
SoundHound: The AI company’s stock rose after strong earnings and guidance, despite a two-month downturn.
Rocket Lab: The stock fell sharply following disappointing results.
Duolingo: The stock dropped after falling below a buy point in Thursday’s session.
Dell Technologies: The stock saw a modest decline, already trading below its 200-day moving average.
Market Overview: Broad Losses Across Indices
The stock market saw broad losses on Thursday. The Dow Jones Industrial Average fell 0.45%, retreating from its 50-day line. The S&P 500 dropped 1.6%, reaching a six-week low after facing resistance at the 50-day line. The Nasdaq Composite plunged 2.8%, hitting its worst levels in three months and nearing its 200-day moving average.
The small-cap Russell 2000 index also fell 1.6%, reaching a fresh five-month low.
While some sectors, including insurance, banking, and retail stocks, showed resilience, growth stocks, particularly those with high valuations, continued to face heavy pressure.
Sector Performance
U.S. Crude Oil: Prices rose 2.5%, reaching $70.35 per barrel.
10-Year Treasury Yield: Increased by four basis points to 4.28%, ending a six-session slide.
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 2.1%, and the iShares Expanded Tech-Software Sector ETF (IGV) dropped 2.65%. The VanEck Vectors Semiconductor ETF (SMH) fell 6.2%, with Nvidia as the largest holding. The ARK Innovation ETF (ARKK) tumbled 3.3%, with Palantir among its major holdings. Meanwhile, the SPDR S&P Metals & Mining ETF (XME) fell 1.1%, and the Health Care Select Sector SPDR Fund (XLV) declined 0.4%.
Nvidia and Palantir Stocks Struggle
Nvidia stock briefly rose above its 50-day line before sharply declining by 8.5%, dropping below its 200-day line. Despite modestly beating earnings expectations and offering a slightly higher Q1 revenue guidance, Nvidia’s results failed to impress investors. The stock has struggled since a significant drop on January 26, following the sell-off in AI hardware stocks.
Palantir stock also faced difficulty, falling 5.1% to 84.77, dipping below its 50-day line and returning to the top of a short consolidation. This follows a strong earnings run earlier in February.
Conclusion
As investors await the release of the core PCE price index on Friday, the stock market continues to face volatility, with major growth stocks like Nvidia and Palantir under pressure. Economic concerns, including potential tariffs and inflation data, are weighing heavily on investor sentiment.
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