NEW YORK — U.S. equities traded lower across the board today following a week of record-setting gains. The S&P 500 dropped 1.2 percent, closing at 7,409. The Nasdaq Composite fell 1.5 percent to 26,225, extending a decline in technology stocks. Small-cap companies saw a sharper retreat, with the Russell 2000 index falling 2.4 percent to 2,793. This broad pullback reflects profit-taking after several indices reached new highs.
Nvidia shares fell 4.4 percent today, trading at $225.32, ahead of its quarterly earnings report. The AI chip leader's financial results and forward-looking guidance are a critical catalyst for the entire technology sector. Analysts will closely examine data center revenue growth, which drove the company's prior earnings beats. Any indication of slowing demand or margin compression would weigh heavily on investor sentiment.
Expectations for Nvidia remain high, with some firms like Goldman Sachs maintaining a $280 price target, citing ongoing demand for AI infrastructure. The company's ability to continue expanding its customer base beyond traditional hyperscalers, particularly into sovereign AI initiatives, is a key growth driver. This new demand stream for specialized AI compute provides a substantial runway for continued revenue increases. The stock has risen over 150 percent in the last 12 months, making any earnings disappointment significant.
Beyond the technology sector, investors are also awaiting earnings reports from major retail companies. These results will provide fresh insights into the health of U.S. consumer spending. Walmart, Target and Home Depot are among the retailers expected to report soon, offering a look at discretionary and essential spending. Amazon, a bellwether for online retail, dropped 1.2 percent today to $264.14, signaling investor caution.
The market's selective nature was evident in today's trading. Microsoft rose 3.1 percent to $421.92, showing continued investor confidence in its enterprise cloud and AI integration strategies. Conversely, Tesla dropped 4.8 percent to $422.24, reflecting persistent concerns about electric vehicle demand and competitive pressures. This divergence highlights a market increasingly focused on individual company fundamentals and growth trajectories. Alphabet also fell 1.1 percent to $396.78.
