Asia-Pacific markets traded mixed Friday after a pullback on Wall Street. The drop came from Nvidia shares tumbling despite the company beating quarterly earnings targets. This happened on February 26, 2026, in the US, with effects rippling to Asia the next day. Investors sold off tech stocks amid fears over future AI spending. Oil price swings added to the uncertainty.
Key Takeaways
- Nvidia stock fell 5% to 5.5% despite Q4 revenue of $68 billion, up 73% year-over-year.
- US indices closed lower: Nasdaq down 1.2-1.5%, S&P 500 off 0.5%, Dow nearly flat.
- Asia markets split: some up slightly, others down as traders watch AI demand and oil.
- Nvidia forecasts $78 billion next quarter revenue, beating estimates but not enough to stop sell-off.
Background
Wall Street has ridden high on AI hype for months. Nvidia sits at the center. Its chips power data centers for companies building AI tools. Demand exploded last year. Revenue jumped 65% for fiscal 2026 to $215.9 billion. But cracks show now. Investors wonder if big spenders like Alphabet and Amazon will keep buying at this pace. Productivity gains from AI aren't clear yet. That worry hit hard Thursday.
Nvidia reported late Wednesday. Numbers looked great on paper. Q4 revenue hit $68.13 billion. That's 20% more than last quarter. And 73% ahead of last year. Full-year growth stunned many. The company even guided $78 billion for the current period. Analysts expected under $72 billion. Still, shares tanked. Down as much as 5.5%. Worst day since spring. Why? Markets had priced in big wins. 'Buy the rumor, sell the news,' traders say.
Broader US market felt the pain. Nasdaq tested 25,000 before dropping 1.5% to around 22,878. S&P 500 lost 0.5% to 6,908. Dow barely moved, up a hair to 49,499. Nvidia's size matters. It's the biggest US stock by market value. A 5% dip dragged indices hard. Peers followed. Broadcom down 6.5%. Micron off 4.7%. AMD lost 3.7%. Semiconductors bled across the board.
Oil added chaos. Prices swung wild. US-Iran talks in Geneva stirred fears. A bad outcome could spike energy costs. Block oil flows. US built up forces in the Middle East. Biggest in decades. That kept traders on edge. Bond yields dipped too. 10-year Treasury to 4.01%. Unemployment claims rose a bit. But stayed low historically.
Asia woke to this mess Friday. Tokyo. Hong Kong. Sydney. Shanghai. Mixed bag. Japan's Nikkei edged up 0.2%. Australia's ASX flat. Hong Kong's Hang Seng down 0.3%. China's mainland slipped 0.1%. Investors parsed US close. Watched their own data. And eyed HSBC profit drops 7% as bank pushes through restructuring. Banks matter here.
Key Details
Nvidia's drop started pre-market. Shares opened lower. Kept sliding. Closed down 5%. Some say 5.5%. CEO Jensen Huang spoke out.
"Our customers are racing to invest in AI compute — the factories powering the AI industrial revolution and their future growth." – Jensen Huang, Nvidia CEO
Huang pointed to demand. But market didn't buy it. Fears grew over client budgets. If AI doesn't pay off fast, cuts could come. Nvidia relies on those sales. It's tied to hyperscalers. Their spending drives growth.
US Market Breakdown
Nasdaq bore the brunt. Down 273 points. Tech heavy. S&P lost 37 points. Nvidia alone caused most of that. Dow held steady. Non-tech stocks mixed. Seven rose for every three down in S&P. Salesforce bucked trend. Up 4% on earnings beat. Buybacks. Dividend hike. Software faced AI pressure too. But recovered some.
Oil volatility hurt sentiment. Prices jumped then fell. Geopolitical risks high. US-Iran nuclear talks key. Peace eases supply fears. War spikes them. Macquarie strategists called it 'make or break.'
Asia Open Reactions
Tokyo positive. Exporters gained on weak yen. But semis dragged. Hong Kong tech lower. Mirrors Nvidia. Sydney miners up on commodities. Shanghai cautious. Property woes linger. Overall volume light. Traders wait for more cues.
Support levels watched close. Nasdaq at 24,881. Could test 24,000 if breaks. Dow at 49,390. Risk to 48,000. Nvidia above 50-day average? Key test.
Key Details
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What This Means
Asia's mixed trade signals caution. Won't chase US down fully. But tech vulnerable. Nvidia sets tone for semis everywhere. If AI spend slows, hits suppliers hard. From Taiwan to South Korea. Chipmakers there.
Global links tight. US consumers buy Asia goods. Slow Wall Street? Hurts exports. Oil swings matter too. Higher energy costs squeeze margins. Inflation watch. Central banks note it.
Investors shift gears. Away from megacaps maybe. Smaller firms show profit strength. Non-tech resilient. Earnings season key. Nvidia forecast helps. $78 billion buffer. But valuation high. Profit-taking normal.
Bigger picture. AI boom tests limits. Demand real. But sustainable? Clients need returns. Else pullback. Markets balance hype and reality. Oil. Geopolitics add layers. Steady hands win.
Traders eye Friday data. US jobs? Fed hints? Asia closes watch Wall Street reopen. Momentum matters. Support holds? Bounce possible. Breaks? Deeper correction.
Banks like HSBC feel it. Restructuring costs bite. Japan Plans Missiles on Yonaguni Island Near Taiwan by 2031 adds tension. Region on edge.
Longer term. Nvidia leads. But peers watch. Broadcom. AMD. Recovery tied. Indices rebound on rotation. Energy stable helps. Talks progress? Relief rally.
Frequently Asked Questions
Why did Nvidia stock fall after good earnings?
Investors sold on 'buy rumor, sell news.' Plus worries big clients might cut AI spending if no quick productivity wins.
How did US indices react?
Nasdaq down 1.2-1.5%. S&P 500 off 0.5%. Dow flat. Nvidia dragged most losses.
What drove Asia's mixed markets?
Followed US tech drop. But local factors like yen, commodities balanced some losses.
Frequently Asked Questions
Why did Nvidia shares drop despite strong results?
Market had high expectations baked in. Fears grew that clients like Amazon may slow AI chip buys without fast returns.
Which US indices were hit hardest?
Nasdaq fell 1.2-1.5% on tech sell-off. S&P 500 down 0.5%. Dow stayed nearly flat.
How did Asia markets respond?
Mixed. Nikkei up 0.2%, Hang Seng down 0.3%, ASX flat amid local cues.
