The S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed lower on Thursday, although both ETFs staged partial recoveries from their intraday lows.
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Forget margin or options. Here's how the pros trade QQQDespite a double beat on both revenue and earnings, Nvidia (NVDA) ended the day with a 5.49% loss. NVDA is the largest holding in both SPY and QQQ with weights of 7.83% and 8.90%, respectively.
- Revenue: $68.13 billion vs. $66.21 billion estimated
- Data center revenue: $62.3 billion vs. $60.69 billion estimated
- Adjusted EPS: $1.62 vs. $1.53 estimated
- Fiscal First-Quarter Guidance: $78 billion plus or minus 2% vs est. $72.6 billion
The semiconductor leader’s results weren’t enough to ward off fears of an AI bubble, high customer concentration, and the sustainability of investments in AI. In addition, investors zoned in on Nvidia’s purchase commitments, which rose by 90.2% quarter-over-quarter to $95.2 billion.
“The debate has shifted away from near-term results and toward the sustainability of AI capex spending, amid concerns around its quantum, monetization and potential cashflow degradation,” said Janus Henderson portfolio manager Richard Clode.
Meanwhile, the U.S. and Iran held indirect nuclear talks in Geneva, with a senior U.S. official describing them as “positive.” Omani Foreign Minister Badr al-Busaidi added that the two sides made “significant progress,” with technical talks scheduled in Vienna next week. At the same time, key disagreements remain, with the U.S. calling on Iran to eliminate its 10,000-kilogram stockpile of enriched uranium. Iran rejected this proposal and pushed for low enrichment levels monitored by the International Atomic Energy Agency.
Before the market opened, the Department of Labor announced that initial jobless claims for the week ended February 21 rose by 4,000 to 212,000, below the consensus estimate of 216,000. Continuing jobless claims, which trail initial claims by a week, fell by 31,000 to 1.833 million and undershot expectations of 1.858 million. Initial jobless claims track new layoffs, while continuing claims reflect the level of ongoing unemployment.
Finally, the Trump administration is weighing its options to retain tariff revenue collected under the International Emergency Economic Powers Act (IEEPA), according to Politico. Several options are on the table, including a proposal that contends tariffs collected over the past year comply with a new set of duties the administration is now implementing under different legal frameworks. Another option would allow companies to move to the front of the refund line by agreeing to forfeit part of the money to the government. Thousands of companies have already filed lawsuits seeking refunds, including Costco (COST) and FedEx (FDX).
The S&P 500 (SPX) closed with a 0.54% loss, while the Nasdaq 100 (NDX) fell by 1.16%.