Wall Street falls on semiconductor sell-off after Nvidia results

Market Commentary

US equities slipped on Thursday, pressured by a sell-off in semiconductors after Nvidia's earnings, despite the results topping forecasts. The S&P 500 fell 1%, the Nasdaq-100 shed nearly 2%, and the Dow Jones Industrial Average drifted marginally lower declining by 0.28%. Nvidia dropped 5% even as it affirmed ongoing expansion, underscoring heightened investor wariness about the sustainability of AI infrastructure spending. Chip peers such as Broadcom, Micron Technology, Intel, and Applied Materials tumbled between 5% and 7%. Salesforce, by contrast, climbed 3% despite a cautious sales projection for the next fiscal year, as AI automation tools fuel doubts over the sector’s viability. Warner Bros. Discovery edged down amid weaker revenues and speculation around bids from Netflix and Paramount Global.

European equities surrendered earlier gains to finish on a mixed note on Thursday, as a strong round of corporate earnings helped counterbalance weakness in technology shares following Nvidia’s latest results call. The EURO STOXX 50 slipped 0.20% to close at 6 162, while the broader STOXX Europe 600 held near the previous session’s record high around 633. Stock moves were largely earnings-driven – argenx fell 8% despite reporting fourth-quarter profits ahead of expectations, while Deutsche Telekom eased 2% even after delivering earnings beat and announcing a new share buyback. In the technology space, ASML dropped 4.50%, mirroring the late-session weakness in Nvidia amid investor concerns that AI-related capital expenditure may moderate.

Germany’s DAX rose by 0.40%, while London’s FTSE 100 also rose by 0.42% to a fresh record above 10 851, buoyed by upbeat corporate developments. Rolls-Royce Holdings climbed 5% after upgrading its outlook and unveiling a multi-year share buyback programme alongside stronger-than-expected annual results. WPP rebounded to finish 5.40% higher, as investors looked beyond softer guidance and a dividend reduction to the new chief executive’s turnaround strategy. London Stock Exchange Group rallied 9% after outlining plans to return an additional £3 billion to shareholders over the coming year.

Asian markets closed mostly higher after Nvidia's first-quarter 2026 results exceeded forecasts, easing concerns about hefty AI-related outlays. The company clarified that its revenue outlook for the current quarter excludes any projected sales of data-centre chips to China, though it secured US licences earlier this month to ship limited volumes of its H200 chips to select customers there, despite prior export curbs. Japan's Nikkei 225 advanced 0.29% to 58 753, while China's Shanghai Composite edged down 0.04% and Hong Kong's Hang Seng dropped 1.43%.

South African equities closed weaker on Thursday, with broad-based pressure weighing on the local bourse. The FTSE/JSE All Share Index (ALSI) ended 0.13% lower at 126 583.84. The FTSE/JSE Top 40 slipped 0.22%, while the FTSE/JSE Resources 10 declined 1.63%, reflecting notable weakness in resource counters. The broader Metals and Mining sector also retreated by 1.28%. Meanwhile, the rand weakened by 0.85% against the US dollar to trade at R15.99.

In contrast to the softer tone in equities, commodity markets delivered a mixed performance. Brent crude oil advanced 1.93% to $72.22 per barrel. Gold edged 0.08% higher to close at $5 174.57 per ounce, while silver came under pressure, falling 2.89%.