Nasdaq Nosedives Amid Nvidia-Induced Tech Turbulence

U.S. stocks fell sharply, driven by lackluster Nvidia earnings disappointing tech investors. Technology shares turned volatile amid AI disruption and hefty costs, leading to Nasdaq's significant decline. Wall Street's major indexes are on track for losses, while the Dow remains stable. Companies like Salesforce and J.M. Smucker saw shares rise contrary to the trend.

U.S. stocks experienced a significant downturn on Thursday after Nvidia's earnings fell short of impressing investors, impacting technology shares heavily involved in the recent market rally. This shift affected major indexes, dragging Nasdaq down more sharply compared to others.

The semiconductor index, SOX, which had been gaining cumulatively, faced the end of a potential 11-week winning streak. Investors are grappling with the financial burdens and potential upheaval associated with fledgling AI technology, leading to fluctuations in technology and semiconductor shares.

As of now, all three major U.S. indexes face modest weekly losses, but the Dow seems to be holding steady with potential February gains. Despite Nvidia's impressive fourth-quarter numbers, analysts expected much more, especially as the chipmaker contends with stiffer revenue growth challenges.

(With inputs from agencies.)