Wall Street Jitters: Nvidia, Tariffs, and Oil Shake US Markets

Key Highlights:

✔ Nasdaq slips as Nvidia’s earnings outlook raises concerns
✔ Dow outperforms, climbing 0.83% amid mixed economic data
✔ Trump’s tariff threats rattle global trade; oil surges on Venezuela license cancellation

Wall Street found itself on uneven ground today as major indices struggled to find direction. The Dow Jones Industrial Average outperformed, gaining 0.83%, while the S&P 500 dipped 0.2% and the Nasdaq Composite slid 0.7%, weighed down by a volatile reaction to Nvidia’s (NVDA) earnings report.

Nvidia’s Blockbuster Earnings – But Is AI Losing Steam?

Chip giant Nvidia delivered yet another earnings beat, reinforcing its dominance in AI hardware. However, despite the strong numbers, the company’s profit outlook sparked concerns on Wall Street, leading to a 2% decline in its stock price. Investors are grappling with whether the AI boom has already peaked or if demand remains robust enough to sustain the rally.

Economic Data Signals Growth, but Labor Market Shows Cracks

On the macroeconomic front, the US economy maintained a steady 2.3% annualized growth rate last quarter, aligning with expectations. However, initial jobless claims jumped to 242,000, significantly above the anticipated 221,000, hinting at potential labor market softening. With Federal Reserve policymakers still debating interest rate cuts, the Personal Consumption Expenditures (PCE) index release tomorrow will be closely watched.

Trump’s Trade War 2.0?

Global markets were also rattled by President Trump’s renewed tariff threats. His latest social media post confirmed that tariffs against Mexico and Canada would take effect on March 4, adding to worries about supply chain disruptions. This follows his Wednesday announcement of a sweeping 25% tariff on EU goods, stoking fears of escalating trade tensions.

Oil Prices Surge as Trump Cancels Venezuela’s Chevron License

Oil prices surged as Trump revoked Chevron’s license to operate in Venezuela, disrupting crude supply from the sanctioned country. West Texas Intermediate (WTI) crude jumped 2.13% to $70.08 per barrel, while Brent crude topped $73. Analysts anticipate more price swings as geopolitical risks mount.

Streaming Shake-Up: Warner Bros. Discovery Jumps on Subscriber Growth

One of the bright spots in today’s market was Warner Bros. Discovery (WBD), which surged 9% after exceeding streaming subscriber growth expectations. The company added 6.4 million subscribers, beating Wall Street estimates, and reported a turnaround in profitability for its streaming business. With streaming wars heating up, WBD’s strong quarter signaled competitive resilience.

Bitcoin Tumbles as Market Sentiment Wavers

Bitcoin, often seen as a barometer of risk sentiment, continued its downward trajectory, falling 2%. The cryptocurrency dipped below $85,000 in overnight trading, marking its lowest level since November. Uncertainty over regulatory crackdowns and shifting macroeconomic trends weighed on crypto markets.

All Eyes on Fed’s Inflation Gauge

As traders digest today's market movements, Friday’s PCE inflation data will be the next major catalyst. A hotter-than-expected reading could dash hopes for early Fed rate cuts, while a softer print might bolster risk appetite. With earnings season nearing its final stretch and geopolitical risks mounting, volatility is expected to remain elevated in the days ahead.