A sharp reversal in tech stocks turned a promising trading session into a downturn on Thursday. Nvidia delivered another standout earnings performance that initially sent its shares surging, but the early momentum evaporated, pulling major indexes lower. Despite renewed strength from a long-delayed September jobs report, Wall Street’s key benchmarks slipped into negative territory as volatility took hold.
Indexes Reverse After Strong Opening
The Dow Jones Industrial Average gave up a rally of more than 700 points and closed down 0.2%. The S&P 500 fell 0.3%, dipping below its 50-day moving average, while the Nasdaq composite lost 0.6% after an early rise of more than 2%. Small caps followed the downturn, with the Russell 2000 also declining 0.6%.
Nvidia was the focal point early in the day, jumping 5% to a session high of 196 before reversing into a loss of more than 1%. Meanwhile, Walmart and IBM led the Dow’s gainers with increases of 6% and nearly 2%. But overall market breadth deteriorated quickly, with declining stocks outnumbering advancers by 3 to 1 on the NYSE and 2 to 1 on the Nasdaq.
Jobs Report and Bond Moves
The long-awaited September nonfarm payrolls report provided a modest boost early on. The Labor Department reported 119,000 jobs added, more than double economists’ expectations. However, the unemployment rate edged up to 4.4%. Treasury yields eased following the data, with the 10-year yield slipping to 4.11%.
Oil prices reflected similar volatility, initially rising before cooling to around $58.95 per barrel. The QQQ ETF, tracking the largest Nasdaq nonfinancials, fell 0.9%, mirroring the broader tech retreat.
Tech and Semiconductor Stocks Shift Lower
Data storage firms saw steep sell-offs. Sandisk plunged around 15%, breaking below its 21-day moving average for the first time since its breakout in August. Micron dropped nearly 7%, extending a four-session losing streak and approaching a test of its 50-day line. The broader semiconductor group was turbulent despite Nvidia’s earnings strength.
Nvidia reported adjusted earnings of $1.30 per share on $57 billion in revenue, beating expectations and projecting fourth-quarter revenue of $65 billion. Early enthusiasm faded as the session progressed, highlighting ongoing volatility in the AI-driven chip sector.
Other Movers Across the Market
Nuclear energy stocks initially attracted interest before reversing. Constellation Energy erased a strong early gain and turned lower, while Oklo fell sharply after a volatile start. Broadcom was one of the more resilient tech names, jumping nearly 6% and reclaiming its 50-day line.
Within the Nasdaq 100, Palantir and AppLovin rose more than 4% early on. Datadog and DoorDash fell more than 2% and 0.5%, respectively. In the Dow, Amazon, IBM, and Microsoft all posted morning gains, while Merck and McDonald’s declined slightly.
Conclusion
Markets swung sharply throughout the session as strong earnings reports collided with profit-taking and broader uncertainty. Nvidia’s exceptional results could not offset pressure across data storage and semiconductor names, while the jobs report provided only temporary relief. As major indexes continue to test key technical levels, investors face a renewed period of volatility driven by mixed economic signals and shifting sector momentum.
