Jason Meshnick, CMT
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Stock Market Today: Stocks end lower, Nvidia beats Wall Street forecasts originally appeared on TheStreet.
Stocks finished lower Wednesday while AI chipmaking heavyweight Nvidia (NVDA) beat Wall Street's quarterly earnings forecasts after the bell.
The Dow Jones Industrial Average lost 244.95 points, or 0.58%, to finish the session at 42,098.70, while the S&P 500 slipped 0.56% to close at 5,888.55 and the tech-heavy Nasdaq dropped 0.51% to end the day at 19,100.94.
Nvidia reported adjusted earnings of 96 cents per share on $44.06 billion in revenue, beating estimates of 93 cent per share on $43.31 billion in sales. Data center revenue surged 73% from a year ago to $39.1 billion.
Shares of Nvidia were up 3.7% in after-hours trading.
“Global demand for Nvidia’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate,” CEO and founder Jensen Huang said in a statement.
“Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation,” he added.
Nvidia incurred a $4.5 billion charge after the U.S. government said that a license would be required for exports of the company’s H20 products to China.
“Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements,” the company said “Nvidia was unable to ship an additional $2.5 billion of H20 revenue in the first quarter.”
Stocks lost their mojo in late-afternoon trading on a news report that the Trump Administration may be suspending export licenses for software sold to Chinese customers used to design semiconductors.
The Financial Times newspaper reported the companies affected include Cadence Design Systems (CDNS) , Synopsys (SNPS) and Siemens EDA to stop supplying their technology to China.
The S&P 500 was off 0.4% t 5,898.30, the Nasdaq Composite Index was down 0.3% to 19,147. The Dow Jones Industrial Average was down 260 points to 42,080.
Technology shares were enjoying a modest rally this afternoon as investor awaited earnings from AI giant Nvidia (NVDA) and Salesforce (CRM) , both due after today's close.
Nvidia shares were up 1% to $136.90 at 2:40 p.m. Nvidia's semiconductors and Graphic Processing Units dominate the market for chips used to power artificial intelligence applications.
