Home / Business and Economy / Nvidia's Earnings Jolt Shakes Global Markets, Nasdaq and S&P 500 Slide
Nvidia's Earnings Jolt Shakes Global Markets, Nasdaq and S&P 500 Slide
28 Aug
Summary
- Nvidia's weaker data center sales and cautious China outlook spark doubts about AI growth
- Nasdaq and S&P 500 fall, while Dow holds steady as tech-heavy indexes feel the impact
- Nvidia's earnings beat forecasts, but markets trade on expectations, not just past performance
On August 27, 2025, Nvidia's latest earnings report sent shockwaves through global markets. Despite beating Wall Street estimates on both revenue and profit, the company's weaker data center sales and cautious outlook on China sparked doubts about whether the AI boom can continue to power growth at the same pace.
The reaction underscored Nvidia's outsized influence on broader equity sentiment, with tech-heavy indexes like the Nasdaq and S&P 500 showing the sharpest pullback as investors reassessed lofty valuations across the sector. In contrast, the Dow Jones Industrial Average managed to hold slightly positive, as it is less exposed to the tech stocks that bore the brunt of the selloff.
Nvidia's warning on China stood out during the earnings call, as the company admitted that U.S. export controls on advanced GPUs have started to bite, limiting future sales in one of its largest markets. This raised deeper questions about the stability of the global AI supply chain and how geopolitics can shape corporate growth.
Advertisement
Advertisement
The shockwaves from Nvidia's cautious guidance didn't stay in the U.S. either, as Asia-Pacific markets and European futures also followed Wall Street lower, underscoring Nvidia's status as a global sentiment barometer for technology, AI, and risk appetite.
