Wall Street hit the brakes Thursday morning.
After a powerful two-day rally that lifted major U.S. indexes off Monday’s tariff- and AI-driven selloff, stock futures turned nearly flat as investors digested a fresh batch of earnings — including blockbuster results from chip titan Nvidia — with a surprising lack of enthusiasm.
Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 each slipped about 0.1%, signaling that traders are no longer satisfied with promises about artificial intelligence. They want proof.
Nvidia Delivers Big Numbers — But Investors Shrug
Late Wednesday, Nvidia delivered exactly what markets had been waiting for: another earnings beat fueled by insatiable demand for AI infrastructure. CEO Jensen Huang said customers are “racing to invest in AI,” underscoring the global scramble for computing power.
Yet the stock edged up less than 1% in premarket trading — a muted reaction for a company that has defined the AI boom.
Analysts say the response signals a turning point.
Investors are shifting from excitement to evaluation, noted Raffi Boyadjian, adding that markets now want to see whether the billions pouring into AI will actually translate into profits.
In short: the AI trade is entering its “show me” phase.
Software Sector Feels the Pressure
If Nvidia represented AI optimism, enterprise software delivered a dose of caution.
Shares of Salesforce fell about 3% after the company issued a full-year revenue outlook that disappointed investors, hinting that corporate customers may be slowing spending amid rapid technological disruption.
The weakness reflects a broader trend. The S&P 500 software and services sector has dropped sharply this year as businesses reassess how AI could reshape — or replace — traditional software models.
AI disruption fears have also weighed on industries from data analytics to trucking and real estate services, sectors now racing to adapt to automation.
Surprise Winners and Losers Across Tech
Elsewhere, the earnings landscape painted a mixed picture:
Nutanix surged 22% after announcing an AI infrastructure partnership with Advanced Micro Devices, highlighting how alliances are forming to challenge Nvidia’s dominance.
Trade Desk plunged nearly 17% on weak revenue guidance amid intensifying competition.
C3.ai tumbled more than 22% after forecasting softer sales and revealing plans to cut 26% of its workforce.
Even megacap names like Apple and Microsoft traded flat, suggesting investors are rotating out of high-growth bets while reassessing valuations.
Media Mega-Deals Add Another Layer of Drama
Beyond Silicon Valley, consolidation talk reshaped the media landscape:
Paramount Skydance ticked higher as it pursues a deal involving Warner Bros. Discovery.
Netflix gained about 2% amid reports CEO Ted Sarandos planned a White House visit tied to potential asset acquisitions.
The moves suggest legacy entertainment firms are also repositioning for a future shaped by AI-driven content, advertising, and distribution.
Commodities and Crypto Pull Back
Markets beyond equities also reflected a pause in risk appetite:
Bitcoin slipped back to around $68,200 after briefly nearing $70,000.
Gold futures fell below $5,200 an ounce.
Oil prices dropped, dragging shares of Exxon Mobil and Chevron slightly lower as traders monitored U.S.–Iran tensions and supply outlooks.
The 10-year Treasury yield held near 4.05%, offering little new direction on interest rates.
A Market Searching for Its Next Catalyst
February has been marked by violent swings in sentiment, with investors oscillating between AI-driven optimism and fears that the technology’s payoff may take longer — and cost more — than expected.
The recent rally pushed the S&P 500 and Nasdaq back to two-week highs, powered largely by heavyweight tech stocks. But Thursday’s hesitation suggests that phase may be ending.
Markets are no longer asking whether AI will change the world.
They’re asking when it will start paying for itself.