Market Overview: U.S. stock markets closed mixed on February 27, with the Nasdaq Composite declining approximately 1.2%. NVIDIA's share price fell 5% following its earnings report. Among the top 20 stocks by trading volume, NVIDIA dropped over 5% as investors expressed concerns over the sustainability of AI-related expenditures. Most popular U.S.-listed Chinese stocks declined, with Baidu down 5.65%, while Pony.ai advanced 4.64%. Oil prices edged lower as market attention turned to nuclear negotiations between Iran and the United States. Gold prices saw a modest increase, with spot gold rising 0.4%. European stock markets stabilized, though a sector rotation was triggered by NVIDIA's decline.
Macroeconomic Developments: The average interest rate on a 30-year fixed-rate mortgage in the United States fell below 6% for the first time since 2022, potentially providing a boost to the spring housing market. Iranian Foreign Minister Araghchi stated that negotiations with the U.S. have made good progress. Mediator Oman announced that the U.S. and Iran will hold technical-level talks next week. Indirect talks between Iran and the U.S. have concluded, with the mediating party describing the negotiations as having achieved significant progress. U.S. House Democrats are set to force a vote on the Iran war powers resolution next week. IDC forecasts a 13% contraction in the global smartphone market this year, citing a memory chip shortage crisis. The number of Americans applying for British citizenship reached a record high during the first year of Trump's second term. Mexico announced a significant blow to a drug cartel operating within the country, capturing a leader of one of its factions.
Corporate News: The U.S. Department of Defense has set a final deadline demanding unrestricted access to Anthropic's AI tools. Walmart reached a $100 million settlement with the FTC over allegations of misleading drivers about their compensation. Dell Technologies reported record quarterly revenue and profit and announced a 20% increase in its cash dividend. Warner Bros. stated that Paramount's revised acquisition proposal represents a superior offer. Salesforce's stock price rose following better-than-expected earnings, a substantial share repurchase program, and optimistic guidance. Vanguard Group reached a $29.5 million settlement with Republican-led states regarding an antitrust lawsuit. A Venezuelan gas station operator declared a state of emergency due to meager profits. The collapse of UK lender MFS has impacted Wall Street firms, including Barclays. Following the success of its AI image generation tool, Google launched a second-generation version named Nano Banana 2.
Commentary & Analysis: Investors considering NVIDIA might also look at diversifying by purchasing several dozen similar stocks. Federal Reserve Governor Milan indicated that four 25-basis-point rate cuts this year remain necessary. Fed official Bowman stated that regulators will issue a revised version of the bank capital reform rules by the end of March. Wells Fargo maintains that despite recent market volatility, equities should generally rise by 2026. The Chicago Fed President suggested the Fed could implement multiple interest rate cuts if inflation continues to decline. A summary of views suggests that disinflation could support several rate cuts, and the sell-off in software stocks may be nearing a bottom. A commodities summary noted crude oil prices were choppy and slightly lower, LME copper edged down, while gold prices saw a small gain. Analysis explored why NVIDIA's stock fell despite the company reporting record profits. Crude oil prices were volatile and slightly lower, influenced by developments in U.S.-Iran talks. A poll indicated that 60% of Americans view former President Trump's actions as unpredictable.