NVIDIA Falls Over 5% Despite Strong Forecast, S&P 500 Drops 0.54%
NVIDIA shares plunged over 5% on February 26 despite an upbeat earnings report and forecast, dragging the S&P 500 down 0.54% to 6,908.86 and lifting the VIX to 18.62. Investors are now focused on January’s PPI release, with analysts forecasting 0.3% monthly inflation ahead of Friday’s open.
1. NVIDIA Earnings Beat, Shares Slide
NVIDIA delivered an upbeat earnings report and raised its revenue outlook for the current quarter, yet shares fell more than 5% as investors questioned whether strong guidance can be sustained in a competitive chip market.
2. S&P 500 Dip and Volatility Rise
The S&P 500 closed down 0.54% at 6,908.86, with NVIDIA’s outsized market weight accounting for the bulk of the decline, while the VIX Volatility Index climbed to 18.62, signaling increased demand for downside protection.
3. PPI Forecast in Focus Before Open
Market participants are positioning ahead of the delayed January producer price index data due at 8:30 a.m. ET, expecting 0.3% monthly inflation, and Polymarket contracts show 64% odds of a lower S&P open with $43,926 traded.