The story of the US stock market has changed again, tech companies have seen a huge decline, know why and what is next

News Topical, Digital Desk : Thursday was a roller-coaster ride for the US stock market. The day began with sharp fluctuations, with indices sliding but later recovering. However, a significant decline by one company – Nvidia – dampened the overall market sentiment. The Dow Jones attempted a comeback, but the S&P 500 and Nasdaq ultimately closed in the red. Unease in the tech sector, questions about AI investments, and global geopolitical events added to the market's interesting story.

Thursday's story: Fall, recovery and then pressure again
Trading on Wall Street was quite volatile on Thursday. There was a sharp sell-off in the market during the day, but later the indices showed a good recovery from the lower levels. Dow Jones recovered from a fall of about 260 points, S&P 500 recovered 50 points and Nasdaq recovered about 210 points. Despite this, the weakness of Nvidia was so severe that S&P 500 and Nasdaq finally closed with a fall. Interestingly, about 350 companies of S&P 500 closed with gains. That is, the market was not completely weak, but the fall of a big tech stock suppressed the entire sentiment. 

Why did Nvidia become the market story?
Nvidia shares fell nearly 5.5%, becoming the biggest talking point of the day. While the company's results and guidance were better than expected, investor confidence was shaken. This marked the biggest decline since April 2025.

Investor concerns were exacerbated by several factors. Uncertainty persisted regarding the nearly $100 billion deal with OpenAI. The company stated that the investment and partnership were being finalized, but there was no guarantee of completion. Furthermore, the market was also troubled by the lack of clear direction regarding future revenue.

Analysts said that whether the heavy capex on AI would actually yield returns has become a major question. Concerns also arose about Nvidia's gross margins. Renowned investor Michael "Big Short" Burry raised questions about the company's purchase commitments, which have increased significantly year-on-year.

The impact spread across the chip sector
. Nvidia's decline was not the only one. AMD closed down by about 3.5%, Broadcom by 3.19%, Intel by 3%, and TSMC by about 3%. This meant the entire chipmaking sector was under pressure.

However, stocks like Salesforce rose by 5%, while tech-software ETFs also rose by 2%. This clearly indicates that sector rotation was ongoing in the market, with investors shifting to safer or different-themed stocks.

Global news also added to the volatility
. The market was impacted not only by tech, but also by global events. News of progress in US-Iran nuclear talks raised hopes that tensions could ease. Meanwhile, the US's escalating tensions with Cuba also created uncertainty. Furthermore, the US Justice Department's response to more than 2,000 cases related to tariff refunds was awaited, which kept the trading environment cautious.

AI's new impact: Jobs are also at stake.
Twitter (now X) co-founder Jack Dorsey's company, Block, announced a workforce reduction due to AI. The company is reducing its workforce from 10,000 to 6,000. Interestingly, the stock jumped 25% in after-hours trading following this news.

However, the market wasn't completely pessimistic. Nearly 350 stocks in the S&P 500 closed with gains. Salesforce jumped nearly 5% on the back of a $50 billion buyback announcement and a recovery from oversold levels. Tech-software ETFs also gained nearly 2%, though they remain in bear market territory.

Several other news stories continued to heighten market tensions.
Oman stated that significant progress has been made in nuclear talks between the US and Iran, and that negotiations will continue at a technical level next week. However, Iran clarified that it will not allow its highly enriched uranium to leave the country, creating uncertainty.

Furthermore, reports of escalating tensions between the US and Cuba also kept investors cautious. In one incident, reports emerged of a violent confrontation between Cuban border guards and a US-affiliated speedboat, prompting the White House to vow an appropriate response after an investigation.
 

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