AI Unrest: Nvidia's Earnings Shake U.S. Stocks

U.S. stocks took a hit Thursday as Nvidia's earnings failed to spark investor enthusiasm, impacting tech shares that have driven recent rallies. While the Dow managed a slight gain, the tech-heavy Nasdaq fell 1.2%, pressured by a 3.2% decline in the Philadelphia SE Semiconductor index.

The downturn has put the SOX index close to ending what would have been a record 11-week rise. The volatility underscores investor concerns over the high costs and uncertainties linked to developing AI technologies. As Nvidia's revenue growth slows, investor pullback has significantly dented its stock value.

Major U.S. indexes are set for modest weekly losses, with February ending on a weaker note for the S&P 500 and Nasdaq. However, financials emerged as gainers, buoyed by robust performances from big banks, even as tech and communication services posted notable losses.