U.S. stock markets were flat as investors focused on Nvidia’s fluctuating shares after strong earnings, while broader concerns included geopolitical tensions, inflation risks, and upcoming economic data. Other notable moves included Salesforce’s decline, Nutanix’s surge on an AMD partnership, and continued caution amid global uncertainties and fiscal stimulus.
U.S. stock markets were mixed following a recent rebound, with the S&P 500 and Nasdaq 100 essentially flat as investors digested earnings reports and awaited upcoming jobless claims data. The main focus was on Nvidia, whose shares fluctuated after reporting robust earnings and a strong revenue forecast, particularly in its data center segment. Despite the positive results, some uncertainty lingered about the sustainability of Nvidia’s growth, especially as the company remains heavily reliant on hyperscaler capital expenditures and has yet to show significant enterprise demand for AI products. Other notable movers included Salesforce, which fell after disappointing investors despite meeting revenue estimates, and Nutanix, which surged on news of a partnership deal with AMD.
Geopolitical tensions were also in the spotlight. The U.S. resumed nuclear talks with Iran in Geneva, but prospects for a breakthrough remained unclear. President Trump signaled openness to both diplomatic and military options, while the U.S. increased its military presence in Israel, partly to reassure Israeli leadership amid ongoing concerns about Iran. Simultaneously, U.S.-Ukraine talks continued, with President Zelenskyy expressing hope for progress but little sign of an imminent resolution to the conflict with Russia. The situation in Cuba also drew attention after a deadly speedboat incident, with the U.S. launching an investigation and expressing skepticism about the Cuban government’s account.
Nvidia’s earnings were widely discussed by analysts, who praised the company’s strong year-on-year growth and confident outlook but noted the absence of a new narrative to drive the next phase of expansion. The market is now looking for signs that enterprise demand for AI will move beyond pilot projects to full-scale deployment, which would support sustained growth beyond the current hyperscaler-driven cycle. Concerns were raised about rising memory prices and competition for capital expenditures, as well as the unclear impact of emerging AI trends—such as agentic AI—on Nvidia’s GPU business versus CPUs.
Broader market risks were analyzed, with experts highlighting the unprecedented levels of fiscal stimulus across major economies like the U.S., China, Japan, and Germany. While this stimulus has supported risk-on sentiment in financial markets, there are concerns about potential supply-side shocks, particularly in energy markets if Middle East tensions escalate. Inflation remains a key vulnerability, with bond markets sensitive to any signs of persistent price pressures. The U.S. economy was described as resilient, with expectations that the Federal Reserve may cut rates up to three times in the coming year, provided inflation remains under control and no major supply disruptions occur.
Other business headlines included ongoing high U.S. tariffs on China, a potential private credit partnership between Apollo and BNP in Europe, and sector-specific risks in software, where private credit exposure is high. Rolls-Royce announced a major stock buyback, and French utility Engie made a significant acquisition in the U.K. power sector. As the trading day continued, investors remained cautious, awaiting further earnings reports, economic data, and developments in global geopolitics to determine the market’s next direction.