S&P 500, Nasdaq Fall as Nvidia Optimism Fades
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- S&P 500 fell 0.54% to 6,908.86 and the Nasdaq Composite dropped 1.18% to 22,878.38 on February 26, with the Dow Jones Industrial Average nearly flat at 49,499.20 due to its lower tech weighting.
- Nvidia reversed its after-hours earnings-beat surge and posted its largest single-day decline since April 2025, as investors questioned whether the chipmaker can sustain its elevated growth trajectory.
- Alphabet, Amazon, and Apple all lost ground alongside Nvidia, though the majority of S&P 500 stocks actually gained on the day — Nvidia's outsized drop dragged the index into the red.
- Eos Energy plummeted nearly 40% after missing revenue estimates, while industrial contractor EMCOR Group declined on 2026 outlook concerns despite reporting solid earnings.
- Investors are rotating out of sectors seen as vulnerable to AI-driven automation, with the article noting that the rolling selloffs may also create buying opportunities in beaten-down names.
Why it matters: Nvidia's gravity is now the single biggest swing factor for U.S. equities — its biggest one-day drop since April 2025 pulled the Nasdaq down 1.18% even though most S&P 500 stocks rose. With investors simultaneously rotating out of automation-threatened sectors, AI sentiment is dictating market direction on both the buy and sell side.
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