Dow Steady, Tech Stock Slide as NVDA Reaction, CRWV Q4 Losses Shake Sentiment
While technology companies faltered, the Dow remained stable as investor attention was diverted by Nvidia'searnings reversal and CoreWeave..
Quick overview
- The Dow held steady while technology stocks faced pressure, particularly due to Nvidia's post-earnings reversal.
- The broader U.S. stock market ended a two-day rally with major indices showing modest declines for the week.
- Nvidia's shares initially surged after strong earnings but reversed sharply, impacting overall tech sentiment.
- CoreWeave's significant quarterly loss and increased capital expenditure plans raised investor concerns about future cash flow.
While technology companies faltered, the Dow remained stable as investor attention was diverted by Nvidia’s post-earnings reversal and CoreWeave’s growing losses.
Broader Market Pauses After Two-Day Rally
The broader U.S. stock market snapped a two-day winning streak, leaving major indices modestly lower for the week with one session remaining. The Dow is down 0.26% for the week, while the S&P 500 is off 0.01% and the Nasdaq has slipped 0.03%.
Dow Jones Chart Daily – The Uptrend Continues
For the day, the Dow Jones Industrial Average rose 17.05 points, or 0.03%, showing relative resilience. In contrast, the S&P 500 fell 37.27 points, or 0.54%, and the Nasdaq Composite dropped 273.69 points, or 1.18%, reflecting heavier pressure in technology shares.
Nvidia Reversal Caps Early Optimism
The spotlight was firmly on Nvidia after the company reported better-than-expected earnings and raised forward guidance. Shares initially jumped in after-hours trading, signaling optimism around continued AI-driven demand.
However, the momentum faded quickly during the regular session. By the close, Nvidia shares had reversed sharply, ending near session lows at $184.32. Market chatter pointed to substantial options positioning around the $200 strike price. Once upside momentum stalled, that exposure appeared to intensify selling pressure, accelerating the pullback.
The reversal weighed heavily on the Nasdaq and broader tech sentiment.
CoreWeave Slides on Loss and Capex Surge
Meanwhile, CoreWeave, Inc. fell as much as 9% in late trading after posting a larger-than-expected quarterly loss and sharply increasing capital expenditure plans.
Fourth-quarter losses widened to $0.89 per share, exceeding analyst estimates of roughly $0.72. Revenue came in at $1.57 billion, slightly above the $1.55 billion consensus forecast.
More concerning for investors was guidance that 2026 capital spending will reach $30–35 billion, well above expectations. The aggressive infrastructure buildout renewed concerns about overspending and potential pressure on future cash flow, echoing broader market sensitivity toward heavy AI investment cycles.
Other chip stocks also performed poorly today:
- Broadcom fell -3.19%
- AMD fell -3.41%
- Intel fell -3.03%
- Micron fell -3.13%
Other losers today:
-
Zoom Video: -11.58%
-
Papa John’s: -8.63%
-
Corning: -6.31%
-
Synopsys: -5.16%
-
First Solar: -4.77%
-
Lam Research: -4.16%
-
ASML ADR: -4.08%
-
Super Micro Computer: -3.93%
-
PayPal: -3.75%
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