Because Nvidia is so large, worth close to $5 trillion, it was the heaviest weight on the S&P 500 Tuesday and checked gains made elsewhere in the market.
Nvidia oftentimes can dictate the movement of index funds that track the S&P 500, which sit at the heart of many 401(k) accounts. A day earlier, Nvidia’s rally of nearly 6% was the biggest reason the S&P 500 erased nearly all its loss from last week.
CoreWeave, whose cloud platform helps customers running AI workloads, fell 14.8% Tuesday even though it reported a smaller loss for the latest quarter than analysts expected. Its revenue also topped expectations, and financial analysts praised its momentum. But investors seemed to focus instead on supply-chain issues delaying a data center and pushing some of CoreWeave’s revenue further into the future.
On the winning side of Wall Street, BigBear.ai jumped 10.9% after reporting better results for the latest quarter than analysts expected. It also said it would buy AskSage, a generative AI platform built for national-security agencies and other highly regulated areas, for $250 million.
Outside of AI, Paramount Skydance climbed 9.4%, even as the entertainment giant fell short of Wall Street’s revenue and profit targets. It was the company’s first earnings report since Skydance closed its acquisition of Paramount in early August, and investors were apparently encouraged that it raised its 2026 cost-cutting goal to $3 billion from the previous $2 billion.
In stock markets abroad, indexes rose in Europe following a mixed finish in Asia.
Japan’s Nikkei 225 slipped 0.1% even though SoftBank climbed 2%. Besides the sale of its Nvidia stake, the tech giant also reported a much bigger profit than analysts expected.
That has left the Fed and investors looking at reports coming from sources outside of the government, which have offered a mixed picture.
A job tracker at Goldman Sachs suggests growth slowed in October from September. After including the effect of a deferred resignation program at the government, U.S. employers overall may have cut 50,000 jobs in October, according to economist David Mericle.
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AP Business Writers Chan Ho-Him and Matt Ott contributed.
