Chip stock weakness and tariff concerns led to market decline, with chip stocks closing down over 7%.

From Nasdaq: 2025-02-27 18:28:45

Stock indexes closed lower on Thursday, with the S&P 500, Dow Jones, and Nasdaq 100 falling to 6-week lows. Nvidia’s better-than-expected Q4 earnings didn’t prevent an over 8% drop. Concerns over gross profit margins, US tariffs, and inflation pressures led to the market decline. US jobless claims rose, and pending home sales fell significantly.

Hawkish Fed comments caused stocks to extend losses. Officials expressed a need for steady interest rates until inflation returns to target levels. Signs of US economic strength came from unchanged Q4 GDP and increased capital spending. The week’s economic calendar includes the Jan PCE price index expected to ease slightly.

Overseas markets were mixed, with the Euro Stoxx 50 down and China’s Shanghai Composite up. US 10-year T-note yields rose, influenced by tariffs and inflation concerns. European bond yields were mixed, while Eurozone economic confidence rose. The Eurozone M3 money supply was weaker than expected.

Chip stocks led the market lower, with Nvidia, Marvell Technology, and others closing down over 7%. Teleflex, eBay, and other stocks faced losses due to earnings forecasts missing expectations. On the positive side, Invitations Homes, Warner Bros Discovery, and Universal Health Services were among the gainers.

In other news, Axon Enterprise, Moderna, Salesforce, and others saw significant declines. Nutanix and Snowflake reported strong revenues, while Allstate increased its dividend. Papa John’s and Walgreens Boots Alliance also saw gains. Earnings reports for Apellis Pharmaceuticals and New Fortress Energy are expected on 2/28/2025.



Read more at Nasdaq: Chip Stock Weakness and Tariff Angst Sink Stocks