Thursday, February 27, 2025 – Wall Street closed sharply lower on Thursday, as a combination of renewed tariff concerns and a significant drop in Nvidia’s stock weighed heavily on investor sentiment. The major indices all finished in the red, with tech stocks particularly hard hit following Nvidia’s disappointing earnings report.
Market Performance
The Dow Jones Industrial Average ended the day down by 0.45%, settling at 43,239.50. The S&P 500 fared worse, losing 1.59% to close at 5,861.57. However, the Nasdaq Composite, heavily influenced by the tech sector, saw the largest decline, plunging 2.78% to 18,544.42.
Tariff Fears & Nvidia’s Earnings Fallout
Concerns over future trade policies came to the forefront as White House economic advisor Kevin Hassett mentioned that the administration would decide on tariffs for Mexico and Canada following an April 1 study. President Trump later contradicted this timeline, confirming that the tariffs would be imposed on March 4, unsettling investors.
Meanwhile, Nvidia (down 8.48%) suffered a steep drop despite reporting better-than-expected earnings and issuing strong forward guidance. Analysts noted that the chipmaker’s outlook for gross margins fell short of market expectations, prompting investors to take profits following the stock’s recent rally.
Tech Sector Hit Hard
The technology sector was the biggest loser on the day, plummeting 3.79%. In addition to Nvidia’s slump, other major tech stocks also saw steep declines. Salesforce dropped 3.89%, Amazon fell 2.62%, and Microsoft dropped 1.80%, contributing to the broader sell-off in the sector.
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