NEW YORK, Feb. 27 (Xinhua) -- U.S. stocks suffered heavy losses on Thursday as technology shares saw a sharp sell-off following Nvidia's latest earnings report, while investors assessed economic conditions amid U.S. President Donald Trump's renewed tariff threats.

The Dow Jones Industrial Average fell by 193.62 points, or 0.45 percent, to 43,239.5, while the S&P 500 declined by 94.49 points, or 1.59 percent, to 5,861.57, and the Nasdaq Composite dropped by 530.84 points, or 2.78 percent, to 18,544.42.

Out of the 11 primary S&P 500 sectors, seven ended in the red, with technology and utilities leading the decline, down 3.79 percent and 2.23 percent respectively, whereas financials and energy provided some support, gaining 0.57 percent and 0.48 percent.

Market sentiment took a hit after Trump confirmed in a social media post that tariffs on imported goods from Mexico and Canada would proceed as planned on March 4. He also announced on Wednesday a 25 percent tariff on the European Union.

Jobless claims in the United States for the week ending Feb. 22 totaled a seasonally adjusted 242,000, up 22,000 from the previous week's revised level and exceeding the Dow Jones estimate of 225,000, according to a Labor Department report released Thursday. This figure is the highest since early October 2024 and comes amid broader concerns about economic growth and troubling signals from recent consumer sentiment surveys.

Meanwhile, Trump has been aggressively cutting the federal workforce through Elon Musk-led Department of Government Efficiency advisory board, resulting in tens of thousands of job cuts, with further reductions expected. In Washington, D.C., new claims reached 2,047, an increase of 421, or 26 percent, marking the highest level for the city since March 25, 2023, a surge that began in early January.

Shares of Nvidia dropped 8.48 percent despite the company beating expectations for both revenue and earnings in its fiscal fourth quarter ending Jan. 26. The chipmaker also provided strong guidance, highlighting ongoing demand driven by the artificial intelligence race. However, its quarterly gross margins fell, and it recorded its smallest revenue beat in two years, prompting concerns about whether the market leader can sustain its momentum.

"Nvidia earnings were outstanding, but they come during an extremely jittery stock market," said James Demmert, chief investment officer at Main Street Research.

Cleveland Fed President Beth Hammack said on Thursday that she does not foresee any additional rate cuts until inflation shows more pronounced signs of cooling. Traders are now eagerly awaiting Friday's release of the personal consumption expenditures price index, the Fed's favored measure of inflation. Enditem

Related

Go to Forum >>0 Comment(s)