Closing Bell: Nvidia Slips After Earnings as Tech Weighs on Markets, Defensives Lead

Key Points

• Markets closed mixed as Nvidia (NVDA) sold off post-earnings, pressuring the Technology and Communication Services sectors.
• Salesforce topped earnings expectations as AI momentum remains a focus.

Markets ended the day mixed after Nvidia (NVDA) sold off following earnings, weighing on the broader Technology sector. The S&P 500 (SPX) declined 0.54%, the Nasdaq-100 (NDX) fell 1.16%, while the Russell 2000 (RUT) outperformed, gaining 0.52%. Financials, Industrials, and Real Estate led the market higher, whereas Information Technology and Communication Services lagged.

Salesforce Reverses Early Losses

Salesforce (CRM) shares reversed early losses after earnings as investors weighed strong quarterly execution against softer full-year growth guidance. The company delivered a clear Q4 beat, reporting adjusted EPS of $3.81 versus expectations of $3.04 and revenue of $11.20 billion, modestly above estimates. Revenue grew 12% year over year, marking the fastest pace in two years, while backlog metrics also exceeded expectations. Management highlighted accelerating AI momentum, citing more than $800 million in annualized Agentforce revenue, the rollout of AI-enabled Slack tools, and the pending $8 billion Informatica acquisition.

Urban Outfitters Moves Higher Post-Earnings

Urban Outfitters (URBN) shares climbed roughly 5% during the session after the company posted a solid Q4 earnings report, beating expectations on both revenue and adjusted EPS. Q4 revenue totaled $1.80 billion, slightly above estimates and up 10.1% year over year, while adjusted EPS of $1.43 comfortably surpassed consensus forecasts. Growth was broad-based, led by strength in the subscription segment, where sales surged more than 40%, accompanied by a sharp increase in active subscribers.

Market Events for Tomorrow (ET)

8:30 AM

• PPI

9:45 AM

• Chicago PMI

10:00 AM

• Construction Spending

Notable Earnings for Tomorrow

• A.M: AMR, CRI, DK, UUUU, GLP, GOGO, TAC
• P.M: SQM

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