U.S. stocks slipped on Wednesday as rising oil prices and a lackluster profit report from Nvidia weighed on investor sentiment. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dropped 120 points. The tech-heavy Nasdaq also declined, as Nvidia's quarterly earnings, while strong, failed to meet lofty expectations.
Oil Prices Surge Past $100
Oil prices climbed above $100 a barrel for the first time in weeks, driven by supply concerns and geopolitical tensions. West Texas Intermediate crude rose 2.3% to $101.50, while Brent crude gained 2.1% to $104.80. The spike in energy costs renewed fears of inflation and potential impacts on consumer spending.
Nvidia's Profit Report Disappoints
Nvidia reported a 12% increase in quarterly profit, but investors were hoping for stronger growth amid the AI boom. The chipmaker's stock fell 3.5% in trading, dragging down other tech shares. Analysts noted that while Nvidia remains a leader in AI chips, the market may be pricing in too much optimism.
Market Reaction
The broader market reflected caution, with the S&P 500 energy sector gaining 1.8% as oil prices rose, while technology and consumer discretionary sectors lagged. Bond yields also edged higher, with the 10-year Treasury yield rising to 4.35%.
Investors are now watching for upcoming economic data, including jobless claims and consumer sentiment reports, to gauge the health of the economy. The Federal Reserve's next policy meeting is also in focus, with expectations of a potential rate hold.
