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LIVE Trump says tariffs on Canada, Mexico will go forward on Tuesday

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Stock market today: Dow sinks, S&P 500 posts worst day of 2025 after Trump forges ahead on tariffs

Mon, Mar 3, 2025, 3:08 PM 2 min read

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US stocks plummeted on Monday afternoon, with selling accelerating in the last hour of trading after President Trump indicated there was “no room left” for tariff negotiations with Canada and Mexico, indicating that new levies against both countries will go into effect tomorrow. The S&P 500 (^GSPC) fell 1.7%, posting its worst day of 2025, while the tech-heavy Nasdaq Composite (^IXIC) dropped 2.6%. The Dow Jones Industrial Average (^DJI) fell nearly 650 points, or almost 1.5%, as the major US indexes came off a volatile week and a losing February.

Tech led the sell-off, with shares of Nvidia (NVDA) tanking more than 8%. All of the “Magnificent 7” stocks declined. March trading kicked off with investors encountering more questions than answers amid looming tariffs as US policy makers face the test of disproving investors’ fears about growth. First quarter economic growth is expected to slide following a string of weaker-than-expected economic data.

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Tariffs against Canada and Mexico are set to come into effect on Tuesday after Trump said levies against both countries are “all set, they go into effect tomorrow.” The week will bring a crucial jobs report and a batch of retail earnings that could feed or ease concerns about an economic downturn and consumer resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%. And in retail earnings ahead, results from Target (TGT) on Tuesday and Costco (COST) are in focus for what they reveal about American shoppers. Data last week showed consumer spending unexpectedly fell in January by the most in four years.

Meanwhile, cryptocurrencies got a boost after Trump said on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices of those tokens on Monday pared some of the sharp gains booked following the post on social media by the president, with bitcoin trading around $86,000.

LIVE 23 updates

14 mins ago

Dow, S&P 500, Nasdaq tank as Trump confirms tariffs against Canada, Mexico

Market losses accelerated but closed off the session lows on Monday after President Trump said there was “no room left” for negotiations with Canada and Mexico and tariffs against imports from those countries were set to go into effect on Tuesday. The White House also indicated levies against China will be 20% as of Tuesday, an increase from 10% implemented last month. The S&P 500 (^GSPC) fell 1.7% to register its worst day of the year, while the tech-heavy Nasdaq Composite (^IXIC) dropped 2.2%. The Dow Jones Industrial Average (^DJI) dropped more than 600 points, or almost 1.5%. Tech led the sell-off, with shares of Nvidia (NVDA) sinking more than 8%. Amazon (AMZN) sank 3%, while Tesla (TSLA) dropped 2%. The threat of tariffs has weighed on the market, with hopes of another delay of levies against the US trading partners faded following the President’s comments. “They’re all set. They go into effect tomorrow,” said Trump on Monday afternoon. Meanwhile Energy stocks declined on Monday as oil plummeted after the Organization of Petroleum Countries said the cartel would start adding some barrels back onto the market after roughly two years of production cuts.

34 mins ago

Bitcoin pares gains, hovers near $86,000

Cryptocurrencies pared gains on Monday following a sharp rally in reaction to President Trump’s announcement on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), so

US stocks plummeted on Monday afternoon, as selling accelerated after President Trump indicated there was “no room left” for tariff negotiations with Canada and Mexico, with levies against both countries set to go into effect tomorrow. The S&P 500 (^GSPC) fell more than 2% while the tech-heavy Nasdaq Composite (^IXIC) dropped 3%. The Dow Jones Industrial Average (^DJI) fell 1.8%, as the major US indexes came off a volatile week and a losing February.

Tech led the sell-off with shares of Nvidia (NVDA) tanking more than 9%. All of the “Magnificent 7” stocks declined. March trading kicked off with investors encountering more questions than answers amid looming tariffs as US policy makers face the test of disproving investors’ fears about growth. First quarter economic growth is expected to slide following a string of weaker-than-expected economic data.

Tariffs against Canada and Mexico are set to come into effect on Tuesday after President Trump said levies against both countries are “all set, they go into effect tomorrow.” Elsewhere, European leaders’ weekend effort to rally around Ukraine prompted traders to boost bets on a bump in defense spending in the region, lifting related stocks. The week will bring a crucial jobs report and a batch of retail earnings that could feed or ease concerns about an economic downturn and consumer resilience. The February nonfarm-payrolls report on Friday is expected to show modest job growth, with the unemployment rate steady at 4%. And in retail earnings ahead, results from Target (TGT) on Tuesday and Costco (COST) are in focus for what they reveal about American shoppers. Data last week showed consumer spending unexpectedly fell in January by the most in four years.

Meanwhile, cryptocurrencies got a boost after Trump said on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices of those tokens on Monday pared some of the sharp gains booked following the post on social media by the president, with bitcoin trading north of $87,000.

Bitcoin pares gains, hovers near $86,000
Cryptocurrencies pared gains on Monday following a sharp rally in reaction to President Trump’s announcement on Sunday that five digital assets — bitcoin (BTC-USD), ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD), and cardano (ADA-USD) — would be included in a new US strategic cryptocurrency reserve. Prices for the tokens shot up before giving up some of their sharp gains booked following the President’s post on social media. By Monday at around 3:15 p.m. ET, bitcoin was trading south of $86, 000, down from $95,000 immediately following the announcement.

Losses accelerate after Trump says “no room left” for negotiations with Mexico, Canada
The markets sank to session lows with Tech and Energy stocks leading the losses after President Trump said there was “no room left” for negotiations with Canada and Mexico and tariffs against imports from those countries would go forward on Tuesday. Nvidia (NVDA), also weighed by reports of the tech giant’s AI chips reaching China despite export controls, dropped 9%. The S&P 500 (^GSPC) fell more than 2% while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 3%. The Dow Jones Industrial Average (^DJI) fell 1.9%.

Oil drops to lowest level of year as OPEC says it will add barrels to market
Oil tumbled 2% to its lowest level of 2025, after the Organization of Petroleum Exporting Countries (OPEC) said it will restart some of its curbed production, while a report about sanctions relief for Russia also weighed on energy prices. The decision to begin adding 138,000 barrels a day in April surprised market participants. Many Wall Street analysts expected the cartel would delay the unwinding of production cuts which began in 2023. In recent years the US and other countries gained market share while OPEC reduced production in an effort to keep a floor on prices. On Monday afternoonWest Texas Intermediate crude (CL=F) declined more than 2% to $68 per barrel. Brent futures (BZ=F) also dropped to trade near $71. Shale producers will likely scale back new well production if oil continues its downward path given higher drilling costs said Ed Hirs, senior fellow at the University of Houston. “Producers are going to be squeezed,” Hirs told Finance. “The vast majority will not drill wells at WTI less than $70 per barrel.” Meanwhile

Big Food’s worst nightmare is unfolding across U.S. supermarket aisles. Shoppers, weary of high prices and highly-processed packaged food, are increasingly buying from smaller food brands, threatening the growth of billion-dollar products from conglomerates such as Unilever.

Consider Hellmann’s mayonnaise, one of Unilever’s biggest brands globally. The condiment is losing market share to less-well-known rivals such as Duke’s Mayo, which was founded in the U.S. south, and Mike’s Amazing mayo, which is gaining traction in the U.S. northeast, where it says it is the fastest growing condiments brand. Both are often priced for less than Hellmann’s. A 30-ounce jar of Duke’s, for example, is priced below $5 versus Hellmann’s $6.49 for the same size. It is now one of the country’s fastest growing brands of mayo with more than $100 million in sales, according to the buyout firm that acquired its parent company, Sauer Brands, for about $1.5 billion in January. Duke’s market share grew to 9% from 6% in 2021, said Joe Tuza, Sauer Brands chief growth officer. The sugar-free mayo is the country’s fifth-largest by market share, Tuza said, behind Hellmann’s and other Kraft Heinz and Unilever brands.

The rival products’ success shows the challenges facing global consumer product and food marketers such as London-based Unilever, which in February surprised retailers, investors and employees when it replaced its second CEO in two years, Hein Schumacher, in part because he failed to turn around its 60.8 billion euro business quickly enough.

Unilever declined to comment for this story. The company paid $24.3 billion, including the assumption of debt, to acquire Hellmann’s owner Bestfoods in 2000, expanding its presence in food. Unilever has aggressively marketed Hellmann’s, and launched new flavors of the condiment, but in recent years, the brand’s hold has weakened in the U.S. mayo category, according to Euromonitor data tracking brick-and-mortar and online retailers.

Adam Theo, 45, of Arlington, Virginia, said he switched to Duke’s after a friend introduced him to the condiment about three years ago. “Before that, I never thought much about my choice of mayonnaise,” he said.

Unilever’s food business, dominated by Hellmann’s and Knorr seasonings, saw sales volume remain roughly flat last year, while prices rose, Fernando Fernandez, who was Unilever’s chief financial officer, said last month. Fernandez replaced Schumacher as CEO on March 1.

Fernandez said Hellmann’s and Knorr performed better than Unilever’s other food brands.

Volume sales of packaged food in the United States, Unilever’s biggest market, have been pressured due to price hikes. The makers of household staples, ranging from condiments like Hellmann’s to Procter & Gamble’s Luvs diapers, have seen some shoppers drift away from their products due to steep prices and fewer innovative products that shoppers would pay more for.

About two weeks before announcing Schumacher’s departure, Unilever reported lackluster full-year earnings and said it has had a slower start to 2025, sending its shares crashing.

The board declined to detail how Schumacher lost directors’ support but a source familiar with its thinking said the decision to dismiss the 53-year-old executive was unanimous. Unilever hired Schumacher as CEO in 2023 from Dutch dairy cooperative FrieslandCampina with the backing of Nelson Peltz, a billionaire U.S. hedge fund manager who first invested in Unilever in 2022 and joined the board several months later. A representative for Peltz declined to comment.

In his 18 months on the job, Schumacher announced plans to sell some of Unilever’s smaller food brands, worked to spin out its ice cream business and cut thousands of jobs. Shares had been up about 9% in his tenure.

Rival Nestle, the world’s biggest food maker, has also endured turmoil at the top. In August, it fired CEO Mark Schneider, tapping insider Laurent Freixe to replace him. A Nestle spokesperson said its U.S. brands, which include Lean Cuisine and Coffeemate, are either in the top spot or second position in 13 categories, including instant coffee and frozen meals.

“Underperforming CEOs are more exposed than ever to the risk of being shown the door,” said Matteo Tonello, head of benchmarking and analytics at research group The Conference Board. Consumer products CEOs must deftly manage not only changing consumer habits but also supply chain disruptions and high commodity prices, he said.

Four investors and bankers who spoke with Reuters said the talent pool to run a consumer goods company

U.S. stock index futures edged up on Monday, ahead of a crucial deadline on tariffs on top trade partners and a data-packed week that could shed light on the health of the world’s largest economy. At 05:50 a.m. ET, Dow e-minis were up 101 points, or 0.23%, U.S. S&P 500 E-minis were up 19 points, or 0.31%, and Nasdaq 100 E-minis were up 89 points, or 0.43%.

Recent reports on softening consumer demand have spurred fears of a slowdown as markets prepare for higher inflation once the tariff policies take full effect. Wall Street’s three main indexes logged their first monthly decline of 2025 in February, with the Nasdaq coming close to a 10% drop from its all-time high. Expectations of sticky inflation had led to the Federal Reserve leaving interest rates on hold since December, but this week’s economic data, particularly Friday’s non-farm payrolls report, could change their outlook.

Investor focus will be on the Institute for Supply Management’s (ISM) survey, due at 10 a.m. ET. Economists polled estimate manufacturing activity to stay in expansion territory at 50.8. Services activity data along with at least three employment reports are also lined up through the week.

Traders have increased bets on the Fed’s 2025 monetary policy easing cycle, with futures pointing to at least two 25 basis points worth of interest rate cuts by December, according to data compiled by LSEG. St. Louis Fed President Alberto Musalem, a Federal Open Market Committee voting member, is scheduled to speak later in the day, while Fed Chair Jerome Powell’s remarks are due on Friday.

Investors are uncertain about tariffs, ahead of the Tuesday deadline, that will end the one-month pause on the 25% duties imposed on imports from Canada and Mexico. There are suggestions that the President could soften the blow on the North American economies if they agree to also impose duties on Chinese goods. An extra 10% duty on imports from China will also take effect on Tuesday, against which Beijing is likely to retaliate with counter-measures on agricultural imports from the U.S. U.S.-listed shares of Chinese companies such as Nio fell 3.6%, JD.com lost 2.3% in premarket trading. Analysts say that April 1 is the day when the new administration’s trade policy would be fully revealed.

Crypto stocks such as MicroStrategy jumped 12.3%, Coinbase rose 9.4% tracking bitcoin that surged 9.8% after the announcement of a proposed reserve of digital assets, ahead of Friday’s White House Crypto Summit.

Defense stocks such as RTX added 2.1%, Lockheed Martin climbed 1.1% after the U.S. approved a $3 billion arms deal to Israel.

Retailing giants are facing new pushback following their DEI retreats. Target and Walmart were among the many companies that announced recent about-faces on diversity, a list that also includes Google, Meta, McDonald’s, Amazon, and Tractor Supply. Now all seven of those companies appear on a list of DEI rollbacks maintained by the NAACP as part of a “Black Consumer Advisory” initiative launched earlier this month designed to encourage support for businesses that expand their commitments to diversity. “If corporations want our dollars, they better be ready to do the right thing,” NAACP CEO Derrick Johnson said in a statement announcing the project. Target is also mentioned as a specific target of another advocacy group, Black Wall Street Ticker, that has called for a “corporate fast” from spending any money at the Minneapolis retailing giant roughly coordinating with the 40 days of Lent starting March 5 through April 17. “To see companies we’ve supported heavily — like McDonald’s, Ford Motors, Amazon, Meta, and Walmart— betray our long-standing relationship is beyond disheartening,” the group says on its site, but “the greatest insult comes from Target.” Walmart has faced some repudiation, too, from some of its own investors. More than 30 shareholders representing $266 billion in assets sent a message last month to CEO Doug McMillon that called the retailer’s recent DEI policy changes “very disheartening.” “As Walmart shareholders, we are also concerned to see our company give into bullying and pressure from anti-DEI groups,” the group said in its letter. The pushback illustrates the difficult spot many companies are in as they try to navigate new legal threats surrounding DEI from the courts, conservative activists, and a Trump administration that is encouraging DEI revisions across corporate America. Retailers are particularly challenged because so many Americans rely on their products or visit their stores — and they often find themselves in the political spotlight for a multitude of reasons. For example, today there is a separate call circulating online for Americans to spend nothing at Walmart, Target, Amazon, and major food chains like McDonald’s on Friday, Feb. 28. John Schwarz, a New York City resident and founder of the grassroots organization The People’s Union, first called for this “economic blackout” in an Instagram video that gained more than 8 million views. Schwarz said he wants to end alleged price-gouging and tax avoidance by major corporations. “If you have to go out and shop that day, go to a local business, a small, locally owned boutique. But if you can, don’t go out and spend a dime that day.” Walmart CFO recently told Finance that it aims to keep prices low under tariff pressure, but the company did not respond for comment around the call for boycotts. Schwartz said his message advocating for price reductions became conflated with DEI. “I support it, but I’m not connected to DEI,” Schwarz said. Pleas for DEI-based boycotts, however, may be having an effect on foot traffic. One retail analyst, Joe Feldman of Telsey Advisory Group, said he suspects shoppers are heeding those pleas based on a look at recent data — even though he can’t be 100% certain. “Is it more than that? Maybe,” he said. “But I think that’s a key driver.” For the week of Feb. 3, Walmart foot traffic was down 2.9% year-over-year, and Target foot traffic was down 8.6%, according to Placer.ai. Meanwhile Costco — a retailer that has affirmed its support for DEI policies and listed that way in the NAACP’s “Black Consumer Advisory” — was up 5.7% year over year. The following week of Feb. 10 also showed a decrease year over year for Walmart and Target, with foot traffic down 1.4% and 3.9%. Costco showed a 4.6% rise. “You can see it just dropped like a rock based on Placer.ai data,” Feldman said about Target’s decline in the three weeks after social media accounts started calling for retail boycotts. Placer.ai’s head of analytical research attributed lower foot traffic in February to “post-holiday spending pullbacks, decreased consumer confidence, weather, and other macroeconomic conditions.” Inclement weather, like the cold fronts that struck the Midwest, South, and Northeast or wildfires in California, would cause a shorter-term drop in traffic, Feldman added. Target declined to comment on the cause. It is no stranger to political controversy. It faced a backlash two years ago following a Pride Month promotion, with Target CEO Brian Cornell saying the company’s in-store staff faced “threats and aggressive actions” over the Pride Month merchandise even though the products had been in its stores for more than a decade. Its website still highlights diversity by promoting a “Buy Black

Stock Market Today: Dow, S&P 500, Nasdaq Diverge After Nvidia Earnings, Economic Data

US stocks showed mixed results on Thursday as investors analyzed AI chipmaker Nvidia’s (NVDA) earnings report and assessed the economic landscape amid President Trump’s latest tariff announcements. The S&P 500 (^GSPC) declined by 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) slipped by 0.7% after both indexes closed higher on Wednesday. The Dow Jones Industrial Average (^DJI) rose by 0.3%.

Investors scrutinized Nvidia’s quarterly earnings, which exceeded expectations and indicated significant growth potential, alleviating concerns about DeepSeek and weakening AI demand. Initially, the results received a muted response as the profit outlook raised doubts on Wall Street, causing Nvidia’s stock to drop by over 2% after erasing early gains. The US economy grew at an unrevised 2.3% annualized pace last quarter, matching consensus estimates. Meanwhile, weekly initial jobless claims surged to 242,000, exceeding economists’ expectations of 221,000, signaling a softening labor market.

Friday’s release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, will be the next data point investors focus on for economic clues, as the path to interest rate cuts becomes increasingly uncertain. Attention also turned to the latest escalation of President Trump’s tariff threats after he announced on social media that levies against Mexico and Canada would take effect as scheduled on March 4. This follows the president’s pledge on Wednesday to impose 25% tariffs on the European Union. Bitcoin (BTC-USD) prices, viewed by some as a gauge of faith in Trump, continued to decline from a post-election peak, falling by 2%. However, the cryptocurrency recovered from earlier losses that saw it drop below $85,000 to its lowest point since November.

Warner Bros. Discovery Stock Pops on Strong Streaming Results

Warner Bros. Discovery (WBD) stock surged by around 8% shortly after the opening bell on Thursday following the media giant’s report of subscriber guidance that exceeded estimates and a profit increase within its streaming unit. The company ended 2024 with 116.9 million global streaming subscribers, an increase of 6.4 million subscribers compared to the third quarter, surpassing Wall Street’s expectations of 4.9 million net additions.

In the release, WBD projected “strong DTC subscriber growth to continue throughout 2025” and that “we now have a clear path to reach at least 150 million global subscribers by the end of 2026, with corresponding strong DTC revenue and adjusted EBITDA growth.” Wall Street had expected 2026 subscribers to reach around 136 million. Additionally, the streaming division reported profits of $409 million in the quarter, compared to a loss of $55 million in the year-ago period. Increased bundling with competitors, in addition to subscriber gains in the quarter, helped boost profits. For full-year 2024, the streaming business turned a profit of $677 million, compared to a $103 million profit in 2023.

Although the company reported a slight revenue miss in the quarter and a wider Q4 loss than expected, adjusted EBITDA came in about 2% above expectations. Looking ahead, WBD stated it is open to experimenting with its pricing model after new reports indicated the company is halting plans to charge ad-free subscribers additional fees to access sports and news content. The company increased the price of its ad-free plans on Max in June.

“We’re openly continuing to experiment as to what the right model is and what the best way is to both drive engagement and first views or acquisition through that powerful content, but at the same time we’re figuring out a business model that works,” JB Perrette, CEO and president of global streaming and games for WBD, said on the earnings call.

WBD CEO David Zaslav also briefly addressed the demise of Venu Sports, a sports streaming service that was supposed to launch from Warner Bros. Discovery, Disney’s ESPN (DIS), and Fox (FOXA). It was ultimately abandoned due to increased regulatory and antitrust concerns. Zaslav believes sports bundles will exist in some form given the saturated market, telling analysts, “There will be an aggregation in a meaningful way behind a couple of the bigger global players, because consumers at some point are going to say this is too cumbersome and too challenging.”

Oil Prices Rise as Trump Cancels Chevron License in Venezuela

Oil prices rebounded above their yearly low on Thursday after President Trump canceled Chevron’s license to operate in Venezuela. Traders also assessed the potential impact of

Nvidia Corp. Reports Solid Quarter and Guidance Amidst DeepSeek Developments

Nvidia Corporation, a leading visual computing company headquartered in Santa Clara, California, has reported a solid quarter and provided robust guidance, reflecting its strong performance across various markets. The company operates through two primary segments: Graphics and Compute & Networking, serving key markets including gaming, professional visualization, data centers, and automotive.

Market Performance and Segment Overview

Nvidia’s Graphics segment continues to thrive, driven by demand in the gaming sector and professional visualization applications. The Compute & Networking segment has also shown significant growth, particularly in the data center market, where demand for high-performance computing solutions is on the rise.

Financial Highlights

• Earnings Estimate: $131.28
• Current Price: $131.28
• Price Target: Not specified in the summary

Analyst Insight

James Kelleher, CFA, Director of Research and Senior Analyst at Argus, has been instrumental in developing Argus’ proprietary valuation models and overseeing technical analysis products. Kelleher, a three-time winner in The Wall Street Journal’s “Best on the Street” All-Star Analyst Survey, provides in-depth analysis and insights into the technology sector.

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About the Analyst

Jim Kelleher, CFA, has over 25 years of experience in the financial services industry. He joined Argus in 1993 and has played a pivotal role in building the company’s proprietary valuation models. Kelleher’s expertise extends to managing several Argus model portfolios and writing the Portfolio Selector report. His book, “Equity Valuation for Analysts & Investors,” published by McGraw-Hill Professional, offers a comprehensive guide to financial modeling and valuation processes.

Conclusion

Nvidia’s strong quarter and guidance underscore its position as a leader in the visual computing industry. Investors and analysts alike are closely watching the company’s developments, particularly in light of recent advancements like DeepSeek, which are expected to further drive growth and innovation.

Nvidia Corp. Delivers Mixed Outlook Amid AI Spending Boom

(Bloomberg) — Nvidia Corp., the chipmaker at the center of an AI spending boom, reported good-but-not-great quarterly numbers on Wednesday, leading to a muted response from investors accustomed to blowout results. The company projected sales of about $43 billion for the fiscal first quarter, which runs through April, slightly above analysts’ estimates of $42.3 billion, with some projections as high as $48 billion.

Nvidia also warned that gross profit margins would be tighter than anticipated as it rushes to roll out a new chip design called Blackwell. The mixed outlook comes at a shaky time for the AI industry, with concerns that data center operators will slow spending. Chinese startup DeepSeek has also sparked fears that chatbots can be developed on the cheap, potentially reducing the need for Nvidia’s powerful chips for AI.

Though the company’s fiscal fourth-quarter sales topped analysts’ estimates, they did so by the smallest margin since February 2023. Earnings, meanwhile, had the narrowest amount of upside since November 2022, according to data compiled by Bloomberg. The stock had been down 2.2% this year, following stratospheric gains in 2023 and 2024 that turned Nvidia into the world’s most valuable chipmaker.

Nvidia has been the biggest beneficiary of a massive surge in AI spending, doubling the size of its revenue the past two years. Many of the largest technology companies are pouring tens of billions of dollars into data center hardware, and Nvidia is the dominant seller of processors that create and run AI software.

Sales in the fourth quarter, which ended Jan. 26, rose to $39.3 billion, matching estimates, though some projections ranged as high as $42 billion. The data center unit, by far Nvidia’s biggest source of revenue, generated sales of $35.6 billion, beating the average estimate of $34.1 billion. Gaming-related sales amounted to $2.5 billion, while automotive was $570 million.

Heading into the earnings report, analysts had expressed concern about near-term growth in Nvidia’s biggest business, which serves data center customers. The big question was whether supply constraints and a shift to Blackwell would slow growth. The new technology is more sophisticated, bringing manufacturing challenges.

DeepSeek added to the worries after releasing a powerful AI model that it said required far fewer resources to create. The announcement in late January led to a widespread selloff in AI-related shares. But key Nvidia customers, such as Microsoft Corp., have maintained their capital expenditure plans, suggesting that the AI spending surge will remain strong.

During the conference call, CEO Jensen Huang argued that DeepSeek will stoke interest in a new approach to AI, expanding demand for Nvidia products. The DeepSeek model relies on fine-tuning, so it will require more computing sessions than the “one shot” training of other software, he said. In fact, the approach might require millions of times more computing power than today, he said.

Though Blackwell will help handle those computing tasks, the rollout has come at a cost. The expense of getting the product to market has weighed on profit margins, Nvidia said. The savings will come later when the company is able to refine its supply chain, according to CFO Colette Kress. Gross margin, or the percent of revenue remaining after deducting the cost of production, will return to a “mid-70s” percentage by the end of the year.

In the current quarter, that measure will be about 71%, about a point below the average of analysts’ estimates.

Nvidia Delivers Mixed Outlook After Two Years of Blowout Earnings

(Bloomberg) — Nvidia Corp., the chipmaker at the center of an AI spending boom, delivered good-but-not-great quarterly numbers on Wednesday, drawing a muted response from investors accustomed to blowout results. Sales will be about $43 billion in the fiscal first quarter, which runs through April, the company said in a statement. Analysts had estimated $42.3 billion on average, with some projections ranging as high as $48 billion.

The company also warned that gross profit margins would be tighter than anticipated as it rushes to roll out a new chip design called Blackwell. And there’s the risk of US tariffs weighing on results. After fluctuating between gains and losses, Nvidia shares were down less than 1% in late trading on Wednesday.

The mixed outlook comes at a shaky time for the AI industry. Nvidia shares have dipped this year on concerns that data center operators will slow spending. Chinese startup DeepSeek has sparked fears that chatbots can be developed on the cheap, potentially reducing the need for Nvidia’s powerful chips for AI.

Though Nvidia executives addressed most of those issues, it’s become harder for the company to produce blockbuster earnings reports. “Guidance was slightly underwhelming,” Edward Jones analyst Logan Purk said in a report. But early sales of the Blackwell chip should help ease investor concerns after earlier reports of production delays, he said. The company got $11 billion of revenue from Blackwell in the fourth quarter, something Nvidia described as the “fastest product ramp” in its history.

“Demand for Blackwell is amazing,” Chief Executive Officer Jensen Huang said in the statement. Though the company’s fiscal fourth-quarter sales topped analysts’ estimates, they did so by the smallest margin since February 2023. Earnings, meanwhile, had the narrowest amount of upside since November 2022, according to data compiled by Bloomberg. The stock had been down 2.2% this year, following stratospheric gains in 2023 and 2024 that turned Nvidia into the world’s most valuable chipmaker.

Nvidia has been the biggest beneficiary of a massive surge in AI spending, doubling the size of its revenue the past two years. Many of the largest technology companies are pouring tens of billions of dollars into data center hardware, and Nvidia is the dominant seller of processors that create and run AI software.

Along the way, Nvidia and its CEO have become synonymous with the AI revolution — and the biggest bellwether for how it’s progressing. Huang has spent much of the past two years crisscrossing the world as an evangelist for AI technology and believes it’s still in the early stages of spreading throughout the economy.

Sales in the fourth quarter, which ended Jan. 26, rose to $39.3 billion. That matched estimates, though some projections ranged as high as $42 billion. Underlining just how quickly the company has grown: Its latest quarterly sales were bigger than Nvidia’s annual revenue two years ago, when it totaled $27 billion.

Profit was 89 cents a share, minus certain items. Wall Street was looking for 84 cents. “We will grow strongly in 2025,” Huang said during a conference call with analysts. The data center unit, by far Nvidia’s biggest source of revenue, generated sales of $35.6 billion. That beat the average estimate of $34.1 billion. Gaming-related sales — once Nvidia’s core business — amounted to $2.5 billion. Analysts projected $3.02 billion on average. Automotive was $570 million.

The data center division alone now has more revenue than rivals Intel Corp. and Advanced Micro Devices Inc. generate in total, combined. Nvidia made its name by selling graphics processors, but discovered that the technology also has applications for AI. Its chips help software models during the training process, when they learn to recognize and respond to real-world inputs. Nvidia’s components are also used in systems that then run the software, a stage known as inference, and help power services such as ChatGPT.

Heading into the earnings report, analysts had expressed concern about near-term growth in Nvidia’s biggest business, which serves data center customers. The big question was whether supply constraints and a shift to Blackwell would slow growth. The new technology is more sophisticated, bringing manufacturing challenges.

DeepSeek added to the worries after releasing a powerful AI model that it said required far fewer resources to create. The announcement in late January led to a widespread selloff in AI-related shares. Nvidia shed a staggering $589 billion of capital in one day of trading, a record for the markets.

But key Nvidia customers, such as Microsoft Corp., have maintained their capital expenditure plans, suggesting that the AI spending surge will remain strong. During the conference call,

BlackRock Reassesses Australian Exposure Amid Stretched Valuations, Weak Growth

BlackRock, the world’s largest asset manager, is considering shifting its focus away from Australia due to stretched valuations and weak growth, seeking better opportunities in markets like the U.S. and Japan. Katie Petering, who leads BlackRock’s multi-asset investment strategy in Australia and New Zealand, stated that an uncertain global outlook has prompted the firm to reassess its strategic asset allocation and make tactical decisions to diversify its portfolio.

“We’re in an environment where there’s a lot more uncertainty and volatility. So as multi-asset investors, we try and build items in the portfolio that give ballast to the portfolio,” Petering explained during a media roundtable in Sydney.

BlackRock has expressed a “pro-Japan” stance due to recent corporate reforms and inflation, which have bolstered companies with pricing power. The firm is also overweight on U.S. equities. In contrast, Australian asset valuations have become stretched by weak economic growth and a prolonged period of high interest rates.

“In Australia, one thing that we’re looking at is that the local market has probably stretched valuations and there’s probably not as strong a growth outlook as other countries. So we’re considering that,” Petering added.

BlackRock’s Australian share investments include major companies such as BHP, CSL, and the Commonwealth Bank of Australia. Last week, the Reserve Bank of Australia reduced its cash rate from a 13-year high of 4.35% to 4.10%, citing progress on inflation but remaining cautious about further monetary policy easing.

BlackRock supports the central bank’s cautious stance amid a tight labor market and geopolitical uncertainty caused by the threat of the Trump administration’s tariffs. Craig Vardy, BlackRock’s Australasia head of fixed income, noted that the main risk for the RBA is around the labor market, with the 4% unemployment rate causing concern.

“The main risk for the RBA is definitely around the labor market … that 4% unemployment rate obviously is causing them a bit of consternation,” Vardy said. This would reduce the prospect for more rate cuts to stimulate growth for Australia’s households, he added.