U.S. stocks ticked higher at the opening after strong, though not stellar, quarterly results from semiconductor darling Nvidia. But President Donald Trump’s tariff talk is limiting gains.
After Wednesday’s market close, Nvidia said its results during the last three months of last year topped analysts’ expectations. Nvidia also issued strong guidance based on expectations AI spending will stay high, but its gross margin forecast, or the percent of revenue remaining after deducting the cost of production, was disappointing.
Like many other companies that previously reported quarterly earnings, tariffs also remain a wildcard for Nvidia, said Colette Kress, Nvidia’s chief financial officer during last night’s earnings conference call. Nvidia shares were last down almost 2%.
Around 9:45 a.m. ET, the broad S&P 500 added 0.32%, or 19.07 points, to 5,975.13; the blue-chip Dow gained 0.48%, or 209.94 points, to 43,643.06; and the tech-heavy Nasdaq rose 0.035%, or 6.77 points, to 19,082.03. The benchmark 10-year yield inched up to 4.289%.
On Wednesday, President Donald Trump slapped a 25% tariff on the European Union and sent mixed messages about whether Mexico and Canada would meet the same fate on March 4 or be delayed until April 2. He clarified that on Thursday morning, confirming Mexico and Canada would face a 25% levy on March 4. Additionally, he said China would get another 10% tax on that day.
Trump’s back-and-forth tariff talk is creating a lot of uncertainty in the markets, which is keeping investors sidelined, analysts said.
Economic worries and inflation
Investors also remain skittish about the health of the U.S. economy and whether inflation is still falling after a spate of weak economic data and January’s hotter-than-expected consumer price index.
U.S. weekly jobless claims rose by 22,000 to 242,000 in the latest week from the prior week’s upwardly revised number, the Labor Department said Thursday. That was higher than the Dow Jones estimate for 225,000 and in line with other recent soft economic data, including lower consumer sentiment and confidence and disappointing retail sales.
On Friday morning, investors will see the Federal Reserve’s preferred inflation gauge used to determine interest rate policy. The personal consumption expenditures price index is expected to drop to 2.6% in January from December’s 2.8%, according to FactSet’s consensus estimates. That’s going in the right direction but still above the Fed’s 2% goal, and many economists fear inflation could reverse course later this year if Trump implements all his tariff threats. All of this will keep Fed rate cuts on hold for a while, they said.
Company news
Besides Nvidia, investors had other corporate news to chew on. It includes:
- Salesforce.com said profits during the last three months of the year rose but the software company’s sales outlook missed analysts’ forecasts. Shares slid 4.1%.
- Online marketplace eBay’s revenue forecast was less than analysts’ expectations, and its quarterly profit fell. Shares lost 9.2%.
- Snowflake topped quarterly earnings estimates and forecast strong revenue growth in the current quarter. Shares of the software company rallied 7.61%.
- Moderna stock dropped 6.88% after a report said U.S. health officials are reevaluating a $590 million contract that was awarded to the drugmaker to develop a bird flu vaccine.
Cryptocurrency
Bitcoin prices rebounded, attracting some buyers after the digital unit fell below some key psychologocal milestones like $90,000 and $88,000.
Reports noted institutional interest in bitcoin is picking up. According to the latest quarterly Securities and Exchange Commission (SEC) filings, billionaire hedge fund manager Paul Tudor Jones nearly doubled his stake in the iShares Bitcoin Trust to 8.1 million shares from 4.4 million shares. As of mid-February, he had 4.5% of his $9 billion portfolio invested in this spot Bitcoin exchange-traded fund (ETF).
Institutional interest typically means large amounts of money flowing from large organizations like pension funds, mutual funds, insurance companies, and investment banks. It is sometimes seen as “the smart money.”
Bitcoin was last up 1.62% at $85,507.33.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Read More: Stock market opens strong but Nvidia dips after earnings show cracks