The S&P 500 and Nasdaq ended sharply lower on Thursday, weighed down by a slump in chipmaker Nvidia after its quarterly report failed to rekindle Wall Street's AI rally, while investors focused on data pointing to a cooling U.S. economy.

Market Snapshot

The S&P 500 dropped 1.59% to end the session at 5,861.57 points. The Nasdaq tumbled 2.78% to 18,544.42 points, while the Dow Jones Industrial Average declined 0.45% to 43,239.50 points.

Market Movers

SUPER MICRO COMPUTER INC fell 16%. Shares jumped 12% on Wednesday after Super Micro filed its long-awaited financial accounts, removing the threat of delisting that has hung over the AI server maker for the past few months.

Tesla Motors was down 3%, extending its losing streak to six sessions. The stock declined 4% on Wednesday. Shares of the electric-vehicle maker have fallen about 20% during the streak. Weak U.S. and European sales data as well as CEO Elon Musk's time spent spearheading the Department of Government Efficiency under the Trump administration have been pressuring the shares.

C3.ai, Inc., the enterprise software company, posted an adjusted fiscal third-quarter loss of 12 cents a share, narrower than the loss of 25 cents expected by analysts. Revenue rose 26% to $98.8 million and beat forecasts. For the fiscal year, C3.ai guided for an adjusted loss from operations of $87 million to $97 million, wider than the loss of $80.6 million expected by Wall Street. Shares fell 9.7%.

Salesforce.com reported fourth-quarter adjusted earnings of $2.78 a share, beating analysts' expectations of $2.61, but the stock for the maker of customer-relationship-management software was down 4% after issuing light guidance for fiscal 2026. Salesforce said it expects fiscal-year sales of $40.5 billion to $40.9 billion, below analysts' estimates of $41.37 billion.

Snowflake jumped 4.5% after the cloud-based data storage company reported fourth-quarter earnings of 30 cents a share on revenue of $986.8 million, beating Wall Street estimates for earnings of 18 cents on revenue of $957 million. The company said it expects fiscal first-quarter product revenue of $955 million to $960 million versus estimates of $961 million. For the fiscal year, Snowflake anticipates product revenue of $4.28 billion, higher than estimates of $4.23 billion.

Moderna, Inc. fell 7.4% following a Bloomberg report that said the Health and Human Services Department was re-evaluating the company's $590 million contract to develop a bird flu vaccine. The contract awarded to Moderna in the final days of the Biden administration was to accelerate the development of potential messenger RNA-based vaccines in case of a H5N1 avian influenza pandemic.

Warner Bros. Discovery rose 4.8% after posting a wider-than-expected quarterly loss as a slump in advertising spending dragged on revenue for its TV networks, but said it sees "a clear path to reach at least 150 million global subscribers" by the end of 2026.

Shares of eBay were down 8.2% after the online marketplace issued fiscal first-quarter revenue guidance below analysts' expectations. EBay said it sees first-quarter revenue of between $2.52 billion and $2.56 billion versus predictions of $2.59 billion. The company reported better-than-expected fourth-quarter earnings and revenue.

Norwegian Cruise Line declined 5.3%. The cruise operator reported fourth-quarter adjusted earnings of 26 cents a share, better than estimates of 11 cents. Norwegian said it sees strong demand for its cruise offerings throughout 2025 and into 2026. Advanced ticket sales at the end of the fourth quarter stood at $3.2 billion.

Cloud computing company Nutanix Inc. rose 10% after posting fiscal second-quarter earnings and revenue that beat analysts' forecasts.

Teladoc Health Inc. tumbled 14% after reporting a fourth-quarter loss of 28 cents a share, wider than analysts' calls for a loss of 24 cents. Revenue of $640 million was roughly in line with Wall Street forecasts. For its fiscal first quarter, Teladoc said it expects revenue of between $608 million and $629 million versus analysts' expectations of $632.9 million.

Energy company Vistra Energy Corp. was down 12% after reporting strong fourth-quarter earnings and reiterating fiscal-year guidance. Vistra is the second-largest owner of independent nuclear plants, behind Constellation Energy, which fell 7.6%.

IONQ Inc. slumped 17% after the quantum computing company reported its fourth-quarter and full-year financial results. While revenue grew to $43.1 million in 2024, nearly double the previous year, the company reported a widening quarterly loss and increased operating expenses. Shares of other quantum pure plays also fell. D-Wave Quantum Inc. declined 9.5%, Rigetti Computing fell 13%, and Quantum Computing Inc. was down 9.7%.

Market News

Nvidia Bounced from the $3 Trillion Market Cap Club After Shares Fall More Than 8%

NVIDIA is out, leaving Apple as the sole member of the $3 trillion club.

The chipmaker’s shares slumped more than 8% on Thursday following quarterly earnings, wiping out about $273 billion in value and giving the company a market cap of $2.94 trillion. The S&P 500 index fell 1.6%, and the Nasdaq dropped 2.8%.

Nvidia is still the second most valuable U.S. tech company, behind Apple and ahead of Microsoft, one of its biggest customers.

So far in 2025, Nvidia shares have lost 10% of their value, as the company faces investor concerns about export controls, tariffs, more efficient artificial intelligence models, and an overall slowing pace of growth.

OpenAI Launching GPT-4.5, Its Next General-Purpose Large Language Model

OpenAI on Thursday announced the research preview of GPT-4.5, a general-purpose large language model. It will initially be open to software developers and people with ChatGPT Pro subscriptions.

The model presents inaccurate information less frequently than predecessors, OpenAI said in a blog post.

“Early testing shows that interacting with GPT‑4.5 feels more natural. Its broader knowledge base, improved ability to follow user intent, and greater ‘EQ’ make it useful for tasks like improving writing, programming and solving practical problems,” OpenAI wrote. GPT-4.5 demonstrated a lower hallucination rate than OpenAI’s GPT-4o and o1 models in one test, the company said in a report accompanying Thursday’s release.