Dow Jones: Nvidia’s Strong Results Power Tech Stocks as Tariff Worries Persist

Stocks Edge Higher Despite Tariff Concerns

Stocks climbed on Thursday even as investor caution grew after President Donald Trump confirmed that tariffs on Canada and Mexico would proceed as planned, along with increased tariffs on China.

The S&P 500 gained 0.3%, while the Dow Jones Industrial Average rose 236 points (or 0.6%). The Nasdaq Composite added a modest 0.1%.

How Are Tariffs Impacting Market Sentiment?

Market caution increased after President Donald Trump announced that 25% tariffs on Mexico and Canada would take effect on March 4 due to insufficient progress in curbing drug flows over the border. An additional 10% tariff on Chinese imports was also announced, adding to the existing 10% levy. The tariff news dampened sentiment, overshadowing an otherwise positive earnings season for tech stocks.

Can Nvidia’s Strong Results Offset Broader Market Concerns?

Nvidia shares climbed 1.8% after the chipmaker posted better-than-expected fourth-quarter results, easing concerns about the AI sector’s growth prospects. Nvidia’s revenue surged 78% year-over-year, highlighting strong demand for AI infrastructure.

Ido Caspi, research analyst at Global X, noted, “This robust performance should alleviate investor concerns about potential slowdowns stemming from emerging competitors like DeepSeek.” Nvidia’s upbeat guidance also boosted other tech stocks, with Broadcom and Tesla gaining around 2.3% each.

What Economic Data Is Shaping Trader Sentiment?

Economic data continued to reflect potential softening in the U.S. economy. Weekly jobless claims rose to 242,000, exceeding expectations of 225,000 and adding to concerns following weaker consumer confidence, disappointing retail sales, and low consumer sentiment. These data points have pressured markets recently, contributing to the Dow’s 188-point (0.4%) drop on Wednesday and keeping the S&P 500 just above the flatline.

Which Stocks Are Making Notable Moves?

Earnings reports led to significant stock movements:

• Snowflake: Surged 12% on better-than-expected results, posting adjusted earnings of 30 cents per share on $987 million in revenue.
• Nutanix: Jumped 16% following strong earnings and revenue that surpassed estimates.
• Freeport-McMoRan: Gained over 2% after Jefferies upgraded the stock to ‘Buy’.
• Sterling Infrastructure: Rose 5% on an upgrade from DA Davidson, citing infrastructure growth potential.
• Salesforce: Fell 3.4% after missing revenue expectations.
• EBay: Dropped nearly 8% due to weak first-quarter revenue guidance.
• Teladoc Health: Slid 13% on a wider-than-expected loss and weak guidance.

What Should Traders Watch Next?

All eyes are now on Friday’s personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Traders will analyze the PCE data for clues on inflation trends and potential Fed policy moves. With all three major indexes on pace for monthly losses, the inflation report could determine whether February ends on a more positive note for equities.

More Information in our Economic Calendar.