U.S. stock futures moved lower Thursday night after a sharp drop in Nvidia weighed heavily on Wall Street. Investors focused less on the chipmaker’s strong quarterly results and more on concerns about shareholder payouts and rising competition in artificial intelligence hardware.
Futures tied to the S&P 500 fell 0.4% to 6,892. Nasdaq 100 futures slipped nearly 0.4% to 24,994, while Dow Jones Industrial Average futures dropped almost 0.6% to 49,260. The declines extended earlier losses in regular trading, led by technology stocks.
Nvidia’s 5% Slide Pressures Tech
Shares of Nvidia fell more than 5% during Thursday’s session, despite reporting strong earnings. The company’s expanding cash reserves sparked questions from investors about whether management would increase buybacks or dividends. Some traders also locked in profits after a sharp rally ahead of results.
Concerns are growing about rising competition in AI chips. Advanced Micro Devices recently signed a major supply agreement with Meta Platforms, intensifying pressure in the AI server chip market. Meanwhile, Alphabet has developed its own tensor chips, and reports indicate it signed a multibillion-dollar agreement with Meta.
The broader market reacted quickly:
- Nasdaq Composite fell 1.2% to 22,878.38
- S&P 500 declined 0.5% to 6,908.89
- Dow Jones ended flat at 49,499.20
For February, the Nasdaq is down 2.5%, reflecting sustained tech weakness. The S&P 500 has slipped 0.4% this month, while the Dow has gained 1.2%, supported by strength in non-technology sectors.
Netflix Jumps 9% After Deal Decision
In contrast to the tech slump, Netflix surged as much as 9% in after-hours trading, reaching a one-and-a-half-month high. The rally came after Netflix announced it would not increase its offer to acquire Warner Bros. Discovery.
Warner’s board determined that a revised $31-per-share bid from Paramount Skydance was superior. Netflix said matching that price would no longer be financially attractive.
Even so, Netflix stands to receive a $2.8 billion termination fee if Warner proceeds with Paramount’s offer. Warner shareholders are scheduled to vote on the deal on March 20. The decision may bring an end to one of the largest recent bidding wars in the media industry.
Other Major After-Hours Movers
Several companies posted sharp moves after earnings announcements:
- Block Inc jumped over 20% after announcing plans to cut 40% of its workforce.
- CoreWeave slid 10% after reporting a larger-than-expected loss and forecasting increased capital spending.
The market’s message is clear: strong earnings alone are not enough. Investors want disciplined spending, clear shareholder returns, and a competitive edge. As AI competition heats up and deal-making reshapes media, volatility is likely to remain a defining feature of the weeks ahead.