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Nvidia Dulls AI Rally as Block Soars on Job Cuts
27 Feb
Summary
- Nvidia's stock fell 5.5%, impacting mega-cap stocks.
- Block Inc. shares surged over 20% after announcing workforce reductions.
- Dell Technologies saw its shares jump on positive AI server sales outlook.
Asian equity futures showed mixed signals, with declines in Japan and South Korea contrasting with slight gains in Australia and Hong Kong. This followed a downbeat session for US semiconductor stocks, as Nvidia Corp. slumped 5.5%, its worst performance since April of the previous year. This dip affected the broader mega-cap group.
However, the AI narrative saw surprising turns. Block Inc., Jack Dorsey's payments giant, surged over 20% in after-market trading after announcing a pivot to AI that includes cutting nearly half its workforce, approximately 4,000 roles. Similarly, Dell Technologies Inc. shares climbed in extended trading on an improved outlook for artificial intelligence server sales.
Treasuries rallied across the curve, with the two-year yield falling four basis points to 3.43% and the 10-year yield dropping five basis points to around 4%. Oil settled at $65.21 a barrel as US and Iran continued nuclear talks. In Asia, upcoming data includes Singapore money supply and Japanese retail sales.
Other corporate news saw Warner Bros. Discovery favor a Paramount Skydance Corp. offer over Netflix. Bitcoin traded around $67,400, partially unwinding a prior rally. Coupang Inc. reported a surprise loss, Baidu Inc. saw revenue drop for the third consecutive quarter, JM Smucker Co. added new directors amid an activist investor agreement, and Celsius Holdings Inc. posted significant sales growth.
