Nvidia Drags Wall Street Lower Thursday02/26 15:21

   The worst day for Nvidia's stock since last spring dragged the U.S. market 
lower on Thursday, even though most stocks on Wall Street rose.

   NEW YORK (AP) -- The worst day for Nvidia's stock since last spring dragged 
the U.S. market lower on Thursday, even though most stocks on Wall Street rose.

   The S&P 500 slipped 0.5% following sharp swings earlier in the week driven 
by hopes and worries created by the artificial-intelligence revolution. The Dow 
Jones Industrial Average added 17 points, or less than 0.1%, and the Nasdaq 
composite sank 1.2%.

   Nvidia, whose chips are helping to power the AI boom, reported another 
stellar quarter of profit growth that breezed past analysts' expectations. It 
also gave a forecast for revenue in the current quarter that once again topped 
Wall Street's estimates.

   But such blowout performances have become so typical for Nvidia that they're 
losing their oomph. Its stock sank 5.5% for worst loss since April.

   "Our customers are racing to invest in AI compute --- the factories powering 
the AI industrial revolution and their future growth," Nvidia CEO Jensen Huang 
said.

   Worries are nevertheless rising that those customers may eventually curtail 
their spending on Nvidia's chips and other AI investments amid doubts about 
whether they can make back their billions of dollars through future gains in 
productivity.

   Because Nvidia's is the largest stock in the U.S. market by value, it has 
more influence on the S&P 500 than any other. It alone accounted for more than 
four-fifths of the S&P 500's loss.

   Despite Nvidia's troubles, seven stocks rose in the S&P 500 for every three 
that fell. Among them was Salesforce, which climbed 4% after it likewise 
reported a stronger profit for the latest quarter than analysts expected.

   It's a return to gains for the stock, which is still down nearly 25% for the 
young year so far. It's been under pressure because of worries that AI-powered 
competitors could undercut its business.

   Salesforce uses AI itself in its offerings that help customers manage 
relationships with their own customers. It also made several announcements that 
typically give a stock's price a boost: It will send up to $50 billion to 
shareholders through buybacks of its stock, and it increased its dividend.

   "Agentic AI is a tailwind for our business," CEO Marc Benioff said.

   Companies in industries as far flung as trucking logistics and financial 
services have also seen their stocks come under sudden and aggressive attacks 
this year by investors who fear their businesses may lose out to AI or even 
become obsolete.

   The sharpest swings have hit software companies, and a widely followed ETF 
that tracks the industry rose 2.1% Thursday to trim its loss for the year so 
far below 22%.

   Elsewhere on Wall Street, Warner Bros. Discovery shares edged down 0.3% 
after the entertainment giant reported a $252 million loss for the fourth 
quarter. That didn't seem to bother investors, who are likely more interested 
in which acquisition offer -- Netflix or Paramount Skydance -- the company and 
its shareholders ultimately accept.

   All told, the S&P 500 fell 37.27 points to 6,908.86. The Dow Jones 
Industrial Average added 17.05 to 49,499.20, and the Nasdaq composite sank 
273.69 to 22,878.38.

   Some of the sharpest swings in financial markets were for oil, where prices 
swung sharply as the United States and Iran held indirect talks about Iran's 
nuclear program.

   A peaceful solution would remove the threat of war, which investors worry 
could block the global flow of oil and drive up its price. The U.S. military 
has already built up the largest force of American warships and aircraft in the 
Middle East in decades, which has raised the stakes. The current round of talks 
feels "make or break," according to strategists at Macquarie.

   A barrel of benchmark U.S. crude briefly fell as low as $63.60. But it 
erased that loss and rose above $66.50 before settling at $65.21, up 0.3%. 
Brent crude, the international standard, also had a zigzag day and finished at 
$70.75 per barrel, down 0.1%.

   In stock markets abroad, indexes rose modestly in Europe following a mixed 
finish in Asia.

   South Korea's Kospi leaped 3.7% to another record, driven by gains for 
tech-related stocks. It's already surged nearly 50% since the turn of the year.

   Hong Kong's Hang Seng, meanwhile, lost 1.4%.

   In the bond market, Treasury yields eased. The yield on the 10-year Treasury 
fell to 4.01% from 4.05% late Wednesday.

   A report showed that the number of U.S. workers applying for unemployment 
benefits ticked up last week, but not by any more than economists expected. It 
also remains relatively low compared with history.