In the early morning of February 27th Beijing time, US stocks closed mixed, with technology stocks being the main drag on the market. Among them, NVIDIA’s stock price plummeted by more than 5%. Although its fourth-quarter earnings and revenue both exceeded market expectations, it failed to dispel investors’ concerns.

It is reported that NVIDIA’s core data center business revenue in the fourth fiscal quarter increased by 75% year-on-year, with an outstanding performance. However, after rising in after-hours trading, technology stocks generally weakened at the opening of US stocks, and NVIDIA’s stock price fell sharply, driving other chip stocks to decline synchronously, while software stocks rose against the trend. Analysts pointed out that the market is worried about the burst of the “AI bubble” and is also concerned that NVIDIA’s industry moat is narrowing, leading to a correction in stock prices.

At the same time, the number of initial jobless claims in the US last week was lower than expected, indicating that the labor market remains stable, which has alleviated market concerns about an economic recession to a certain extent. In addition, there is still uncertainty about the Federal Reserve’s interest rate cut expectations. US PPI rose more than expected in January, with a month-on-month increase of 0.5% and a year-on-year increase of 2.9%, and the core PPI was 3.4%, which further cooled the market’s interest rate cut expectations.

Industry insiders predict that US stocks will continue to maintain a volatile pattern in the short term. The performance of technology stocks and the policy trends of the Federal Reserve will become the core factors affecting the market trend, and investors need to be alert to the risks brought by market fluctuations.