S&P 500 Stalls While Nvidia Surges – Is This the Start of a New AI Boom?
Monday’s stock market session ended without much excitement, as the S&P 500 barely budged, closing at 5,956.06—up just 0.01%. The Dow Jones slipped 0.43% to 43,433.12, while the Nasdaq managed a small gain of 0.26%, finishing at 19,075.26.
Investors seemed cautious, balancing strong corporate earnings against concerns over economic uncertainty and trade policies. While the market didn’t see major swings, one company stole the spotlight: Nvidia.
Nvidia’s Big Earnings Boost
The AI boom has been personified by Nvidia, and the company’s most recent financial report was impressive. When the firm revealed a higher-than-expected sales projection after hours, the price soared an additional 1%. During the regular session, the stock jumped 3.7%, finishing at $131.28.
The demand for the AI chip giant’s high-performance processors, which are crucial for AI applications, is still rising. One minor issue did arise, though, as its anticipated gross margin for the upcoming quarter was marginally lower than analysts had anticipated. Why? increased expenses associated with increasing manufacturing of its state-of-the-art Blackwell chips.
Nvidia’s view is still very optimistic despite that small setback, and investors are placing large bets on the company’s future.
Trump’s Tariff Surprise Adds to Uncertainty
Aside from earnings, investors were also reacting to the latest trade policy news. Former President Donald Trump announced a fresh 25% tariff on European Union imports, adding another layer of economic uncertainty. At the same time, he hinted that planned tariffs on Mexico and Canada might be postponed until April 2.
This back-and-forth on trade policy could have a big impact on businesses that rely on international supply chains, keeping Wall Street on edge as it waits for more clarity.
What’s Next for the Market?
With Nvidia’s earnings in the rearview mirror, traders are shifting their focus to upcoming economic reports. Later this week, the U.S. Commerce Department will release its final estimate for fourth-quarter GDP growth, and the Federal Reserve’s go-to inflation measure—the Personal Consumption Expenditures (PCE) index—will provide more insight into where prices are heading.
If inflation remains stubbornly high, the Fed might hold off on cutting interest rates, which could weigh on stocks in the coming weeks.
For now, Nvidia’s strong performance is giving investors something to celebrate, but with trade policy uncertainty and inflation worries still in play, the market’s next move is anyone’s guess.
