Nvidia slipped more than 1% as traders braced for its third-quarter results due after the bell Wednesday. While analysts widely expect a strong report, there’s growing concern that continued blowout guidance could raise red flags about spending excesses in the AI sector.
“The results may not surprise anyone,” noted Montis Financial’s Dennis Follmer, “but they could reinforce concerns about unsustainable AI-related capex, even for a dominant name like Nvidia.” The stock remains under pressure along with other semis as valuation concerns linger.
Which Sectors Lagged the Broader Market?
Energy (-0.74%), Technology (-0.71%), and Consumer Discretionary (-0.42%) underperformed, dragging on the broader indexes. Financials, Materials, and Industrials also closed in the red. In contrast, Communication Services rallied 2.54%, helped by Alphabet’s gains, while Utilities and Health Care posted modest advances.