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Stock market today: Live updates

by Rachel Morgan News Editor
written by Rachel Morgan News Editor

U.S. Stock futures rose sharply early Wednesday after President Donald Trump announced he was suspending planned attacks on Iran for two weeks. This pause comes just ahead of an 8 p.m. ET deadline, halting a five-week conflict that had disrupted global energy supplies and rattled equity markets.

Market Response

Futures tied to the Dow Jones Industrial Average rose by over 1,000 points, or 2.29%. S&P 500 futures added 2.52%, and Nasdaq 100 futures climbed 3.2%. West Texas Intermediate crude futures tumbled about 14% to $97.17 a barrel, although Brent crude for June delivery lost more than 12% to $95.55 per barrel.

Did You Know? The average U.S. National gasoline price tracked by AAA rose above $4 a gallon for the first time since 2022 due to the closure of the Strait of Hormuz.

The S&P 500 was 5.5% off its all-time high reached earlier this year through Tuesday’s close, reflecting the economic anxieties caused by the conflict. The benchmark had briefly neared a 10% correction last month before rebounding on hopes for a resolution.

The Ceasefire Agreement

Trump announced the suspension on Truth Social, stating, “I agree to suspend the bombing and attack of Iran for a period of two weeks.” He indicated that this decision followed the receipt of a “10 point proposal” from Iran, which he believes offers a basis for negotiation. The ceasefire is contingent on Iran reopening the Strait of Hormuz.

The Ceasefire Agreement

Iran’s Supreme National Security Council agreed to reopen the waterway for two weeks, provided all attacks cease, and transit is coordinated with Iran’s Armed Forces. Israel also reportedly agreed to the ceasefire.

Expert Insight: The market’s reaction underscores the sensitivity of global financial systems to geopolitical events, particularly those impacting critical energy chokepoints like the Strait of Hormuz. The two-week timeframe introduces a period of uncertainty, as the long-term viability of the ceasefire remains to be seen.

Stocks had already begun to recover during Tuesday’s trading session after Pakistan’s Prime Minister Shehbaz Sharif requested Trump extend his deadline and urged Iran to open the Strait of Hormuz as a gesture of goodwill.

Looking Ahead

The situation remains fluid. While the immediate threat of military action has subsided, the success of this ceasefire will depend on continued negotiations and adherence to the agreed-upon terms. The two-week period will be extended, leading to a more lasting resolution. Alternatively, the conflict could resume if negotiations fail or if either side violates the ceasefire agreement.

Frequently Asked Questions

What prompted the initial threat of attacks from President Trump?

President Trump had set an 8 p.m. ET Tuesday deadline for Iran to reach a deal with the U.S. To reopen the Strait of Hormuz, threatening attacks on Iran’s power plants and bridges if the terms were not met.

What is the significance of the Strait of Hormuz?

The Strait of Hormuz is a crucial waterway for global energy supply, carrying more than 20% of the world’s daily oil supply. Its closure had driven up crude oil prices and raised concerns about the global economy.

What was the market’s reaction during regular trading hours on Tuesday?

During the regular session Tuesday, the S&P 500 eked out a gain of 0.08%, the Nasdaq Composite inched 0.10% higher, while the Dow lost 85.42 points.

Will this two-week ceasefire lead to a lasting peace, or is this merely a temporary reprieve in a larger, ongoing conflict?

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Tech

Some software names hit by AI deserve a valuation cut

by Chief Editor
written by Chief Editor

AI’s Impact: Software Valuations Under Scrutiny

The artificial intelligence revolution is rapidly reshaping the software landscape, leading to a critical reassessment of valuations. Orlando Bravo, co-founder of Thoma Bravo, recently stated that some software companies facing disruption from AI are experiencing “very warranted” decreases in their valuations. This comes as AI model companies release tools that threaten to replace existing software services at a lower cost, impacting the entire industry.

The Disruption is Already Here

Bravo emphasized that many companies currently being disrupted by AI were already facing underlying challenges. The rise of AI is simply accelerating the inevitable for some, while others are being unfairly penalized in the market downturn. The iShares Expanded Tech-Software Sector ETF (IGV) has fallen roughly 28% from its peak in September, illustrating the broad market correction.

Thoma Bravo’s Own Lessons Learned

Acknowledging past missteps, Bravo admitted that Thoma Bravo overestimated growth rates during its $6.4 billion acquisition of Medallia in 2021, leading to an overpayment. This candid admission highlights the challenges of accurately forecasting growth in a rapidly evolving technological environment.

Winners and Losers in the AI Era

Despite the overall market turbulence, Bravo believes some software companies are being unduly punished and are poised to thrive in the “agentic era.” These “phenomenal businesses” possess characteristics that allow them to leverage AI effectively, but he did not specify which companies he believes fall into this category.

Apollo’s Critique of Private Equity Valuations

The scrutiny of software valuations extends beyond Thoma Bravo. Apollo Global Management President John Zito recently criticized “arrogance” in software valuations within the private equity sector, specifically referencing the Medallia acquisition. This suggests a broader industry-wide reckoning regarding pricing and expectations.

The Future of Software Investment

Bravo’s comments align with a growing sentiment that AI valuations are currently in a bubble, reminiscent of the dot-com era. While AI presents immense opportunities, investors are becoming more discerning, focusing on companies with strong fundamentals and a clear path to profitability.

AI Boosts Developer Productivity

Interestingly, a recent discussion between Orlando Bravo and IBM CEO Arvind Krishna highlighted the positive impact of AI on software development. Krishna shared that AI is boosting developer productivity, expanding entry-level hiring opportunities, and unlocking billions in back-office automation. IBM has reinvested savings from automation into software R&D and growth.

FAQ

Q: Is AI a threat to all software companies?
A: No, AI will disrupt some companies more than others. Those with deep domain expertise and the ability to integrate AI effectively are more likely to succeed.

Q: What is an “agentic era”?
A: The “agentic era” refers to a future where AI agents are layered on top of existing systems, automating tasks and providing intelligent assistance.

Q: Did Thoma Bravo make a mistake with the Medallia acquisition?
A: Yes, Orlando Bravo acknowledged that Thoma Bravo overestimated Medallia’s growth potential and paid too much for the company.

Q: Are software stocks currently oversold?
A: Orlando Bravo believes some software stocks are oversold, while others are experiencing justified valuation corrections.

Pro Tip: Focus on software companies with strong domain expertise and a clear strategy for integrating AI into their offerings. These are the businesses most likely to thrive in the long run.

What are your thoughts on the impact of AI on the software industry? Share your insights in the comments below!

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Business

Stoxx 600, FTSE, DAX, CAC, Iran news and oil prices

by Chief Editor
written by Chief Editor

European Markets Navigate Uncertainty: DAX, FTSE, and Oil Price Volatility

European stock markets are exhibiting cautious behavior as global economic and geopolitical factors continue to exert influence. As of Tuesday, March 17, 2026, the FTSE 100 is expected to open slightly higher, while Germany’s DAX, France’s CAC 40, and Italy’s FTSE MIB are projected to remain relatively flat, according to data from IG.

Middle East Tensions and Oil Price Fluctuations

Regional markets are responding to ongoing unrest in the Middle East and the resulting volatility in oil prices. Oil prices experienced a decline on Monday, with West Texas Intermediate (WTI) trading just below $95 a barrel, a drop from over $100 at the weekend. This decrease followed reports that the U.S. Is planning to establish a coalition to escort ships through the Strait of Hormuz.

However, uncertainty persists. Despite the U.S. Allowing Iranian oil tankers passage through the Strait, oil prices still jumped over 2% overnight, highlighting the sensitivity of the market to geopolitical developments. The potential for disruption to oil supplies remains a significant concern for global economies.

Central Bank Watch: The Federal Reserve’s Stance

Traders are closely monitoring central bank actions, particularly the U.S. Federal Reserve’s two-day policy meeting which began on Tuesday. The Fed faces pressure to lower interest rates, but the situation in the Middle East is influencing expectations. Current forecasts suggest the central bank will hold interest rates steady when it announces its monetary policy decision on Wednesday.

Asian and US Market Performance

Asian markets generally rose overnight, while U.S. Stock futures experienced a slight decline. This divergence underscores the complex interplay of global economic forces and regional sensitivities.

Corporate Earnings and Economic Data

Tuesday’s corporate earnings reports include updates from Prudential and Poste Italiane. The latest reading of EU economic sentiment will be released, providing further insights into the health of the European economy.

DAX Performance and Key Indicators (March 16, 2026)

The Global X DAX Germany ETF (DAX) closed on March 16 at $43.02, up $0.66 (1.56%). After-hours trading saw a price of $42.70, down $0.32 (-0.74%). The DAX index itself was at 23,564.01 as of 6:30:09 AM GMT+1 on March 17.

DAX Composition and Significance

The DAX tracks 40 of the largest and most liquid companies listed on the Frankfurt Stock Exchange, serving as a key indicator of the German economy – Europe’s largest. The index is weighted by free-float market capitalization, with a 10% cap per stock.

Looking Ahead: Potential Trends

The current market environment suggests several potential trends:

  • Geopolitical Risk Premium: Continued instability in the Middle East is likely to maintain a risk premium in oil prices and potentially impact global equity markets.
  • Central Bank Divergence: The differing responses of central banks to economic pressures could lead to currency fluctuations and impact international trade.
  • Sector Rotation: Investors may shift towards defensive sectors, such as healthcare and consumer staples, in times of uncertainty.

Did you know?

Germany’s DAX expanded from 30 to 40 constituents in September 2021, and adopted new profitability screens following the Wirecard scandal, aiming to improve the index’s quality and resilience.

FAQ

Q: What is the DAX?
A: The DAX is Germany’s flagship blue-chip stock market index, representing the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange.

Q: What factors are influencing European markets right now?
A: Geopolitical tensions in the Middle East, oil price volatility, and central bank policy decisions are key factors impacting European markets.

Q: What is the current outlook for the Federal Reserve?
A: Current forecasts suggest the Federal Reserve will hold interest rates steady at its upcoming meeting, despite pressure to lower them.

Q: Where can I find more information on the DAX?
A: You can find more information on the DAX at MarketWatch and Yahoo Finance.

Pro Tip: Diversifying your portfolio across different asset classes and geographic regions can help mitigate risk during periods of market volatility.

Stay informed about market developments and consider consulting with a financial advisor to make informed investment decisions.

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Tech

Amazon says outage was triggered by ‘software code deployment’

by Chief Editor
written by Chief Editor

Amazon Outages: A Sign of Growing Pains in a Complex Digital Ecosystem?

Amazon’s recent website and app outage on Thursday, impacting users’ ability to check out, access account information, and view prices, highlights a growing concern: the increasing fragility of the digital infrastructure supporting modern commerce. The incident, which peaked with over 22,000 reported issues according to Downdetector, was attributed to a “software code deployment,” but the broader implications point to potential future trends.

The Rise of Interconnected Vulnerabilities

The Amazon outage wasn’t an isolated event. It followed disruptions to Amazon Web Services (AWS), the company’s cloud computing unit, stemming from drone strikes that damaged data centers in the United Arab Emirates and Bahrain. These incidents, linked to potential geopolitical motivations – Iranian state media reported the Bahrain data center was targeted by Iran’s Islamic Revolutionary Guard Corps – demonstrate a recent layer of vulnerability. The interconnectedness of services means a disruption in one area can quickly cascade into others.

This trend suggests a future where outages aren’t simply technical glitches, but potential consequences of broader geopolitical instability or targeted cyberattacks. Businesses relying heavily on cloud infrastructure, like Amazon, will need to invest heavily in redundancy, security, and disaster recovery planning.

Software Deployment: The Double-Edged Sword

Amazon’s explanation – a faulty software code deployment – is a common cause of outages. The pressure to rapidly innovate and release new features often leads to faster deployment cycles. While agility is crucial, it increases the risk of introducing bugs or conflicts that can bring down systems.

Expect to see a greater emphasis on “canary releases” and more robust testing procedures. Canary releases involve rolling out updates to a small subset of users before a full deployment, allowing for early detection of issues. Automated testing and AI-powered anomaly detection will also become increasingly important in identifying potential problems before they impact a large user base.

The Impact on Consumer Trust and Brand Loyalty

Each outage erodes consumer trust. While Amazon was able to resolve the issues within approximately six hours, the disruption inconvenienced countless shoppers and raised questions about the reliability of the platform. Repeated outages could drive customers to explore alternative retailers.

Companies will need to prioritize transparency and proactive communication during outages. Providing real-time updates, explaining the cause of the problem, and offering compensation for inconvenience can facilitate mitigate the damage to brand reputation.

The Future of Cloud Resilience

The AWS disruptions highlight the need for greater resilience in cloud infrastructure. Geographically diverse data centers are essential, but they are not enough. Companies are exploring multi-cloud strategies, distributing their workloads across multiple cloud providers to reduce their reliance on any single vendor.

edge computing – processing data closer to the source – can reduce latency and improve resilience by minimizing the impact of outages in centralized data centers.

FAQ

What caused the Amazon outage on Thursday?

Amazon stated the outage was due to a software code deployment.

Were Amazon’s cloud services affected?

Amazon said its cloud services were functioning normally following previous disruptions caused by drone strikes.

How long did the outage last?

The issues appeared to be largely resolved by 8 p.m. ET.

Is Amazon a target for geopolitical attacks?

Iranian state media reported that Amazon’s data center in Bahrain was targeted by Iran’s Islamic Revolutionary Guard Corps.

Pro Tip: Diversify your online shopping across multiple platforms to minimize disruption from any single retailer’s outages.

What are your thoughts on the increasing frequency of online outages? Share your experiences and concerns in the comments below. Explore our other articles on digital security and e-commerce trends to stay informed. Subscribe to our newsletter for the latest insights delivered directly to your inbox!

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Business

Operation Epic Fury means new risks for markets

by Chief Editor
written by Chief Editor

The New World Order: Navigating the Economic Fallout of the US-Israel Strikes on Iran

Markets hate uncertainty, and the events of the last 48 hours have fundamentally reshaped the international political landscape, leaving investors globally scrambling to understand the ramifications. The coordinated strikes on Iran – Operation Epic Fury – have upended a global order established after World War II, ushering in a new era of politics impacting international allies and adversaries alike.

Sell-Off in the Middle East and Beyond

Stock markets across the Middle East came under pressure on Sunday, the first trading session following the attack. Saudi Arabia’s Tadawul, Oman’s Muscat index, and Bahrain’s exchange all traded in the red, while indexes in Dubai, Abu Dhabi, and Israel are set to resume trading Monday. The impact is expected to reverberate across global markets.

The Oil Trade: A Volatile Future

Oil markets are at the epicenter of volatility. Traders predict Brent crude will spike above $80 a barrel, despite OPEC’s recent decision to increase output. This surge is driven by fears of supply disruption and escalating geopolitical risk.

Oil prices expected to spike following Operation Epic Fury

Strait of Hormuz Disruption: A Chokepoint in Crisis

The closure of the Strait of Hormuz is exacerbating oil price volatility. Global shipping companies have suspended vessel transit until further notice. Iran’s Revolutionary Guard claimed to have struck oil tankers in the Gulf in retaliatory strikes. Rerouting vessels around Africa adds time and cost to shipments, further impacting global trade.

Airline Chaos and the Ripple Effect on Travel

Air travel has experienced significant disruption, with most of the Middle East region’s airspace closed since the strikes began. Over 1,500 flights were cancelled across the region Sunday, and over 19,000 flights globally were delayed. Airlines face continued pressure as they work to reopen routes and arrange repatriation flights.

The Unexpected Intersection: AI and Military Operations

The strikes too highlight the growing role of artificial intelligence in modern warfare. The U.S. Military reportedly used Anthropic’s Claude AI technology to support its operations in Iran, even as the company faced scrutiny and was temporarily blacklisted by the Pentagon over concerns about unrestricted military use.

What Comes Next: Navigating the Uncertainty

The coming week will be critical. President Donald Trump stated that U.S. Military operations are “ahead of schedule.” In a market already sensitive to uncertainty, investors will be focused on the ‘known unknowns’ and potential escalation.

Frequently Asked Questions

What is Operation Epic Fury?

Operation Epic Fury is the name given to the coordinated U.S.-Israeli military strikes on Iran, targeting its leadership and military infrastructure.

Who was Ayatollah Ali Khamenei?

Ayatollah Ali Khamenei was Iran’s Supreme Leader for nearly four decades, and was killed in the recent strikes.

How will the Strait of Hormuz closure impact oil prices?

The closure will likely cause a significant spike in oil prices due to supply chain disruptions and increased shipping costs.

What is the role of AI in this conflict?

The U.S. Military reportedly used AI technology, specifically Anthropic’s Claude, to support its operations, raising questions about the ethical implications of AI in warfare.

Pro Tip: Diversification is key during times of geopolitical instability. Consider rebalancing your portfolio to include assets less sensitive to oil price fluctuations and regional conflicts.

Stay informed and prepared. The situation is rapidly evolving, and continuous monitoring of market developments and geopolitical events is crucial for making informed investment decisions.

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Entertainment

These stocks are the most at risk from AI disruption

by Chief Editor
written by Chief Editor

AI Disruption: Which Stocks Are Most Vulnerable?

U.S. Stocks are facing a period of uncertainty as the rapid development of artificial intelligence models threatens to upend established business models. A recent analysis by Jefferies identifies 150 companies with market caps exceeding $1 billion that are at significant risk from AI-driven disruption. The software sector, in particular, is feeling the pressure, with the iShares Expanded Tech-Software Sector ETF (IGV) down over 23% this year.

The “AI Paradox” and Market Reaction

The current market downturn isn’t necessarily a sign of fundamental weakness in all tech companies, but rather a reaction to the potential for AI to reshape industries. Investors are grappling with the “AI paradox” – the idea that whereas AI offers immense potential, it also introduces significant risks to existing revenue streams and competitive advantages. This has led to a sell-off in software-as-a-service providers, insurance services, logistics, and real estate stocks.

How Jefferies Assessed AI Risk

Jefferies developed an “AI risk” assessment model, combining return profiles with an AI-assisted search algorithm, to pinpoint vulnerable stocks. The analysis focused on potential threats like asset repricing, demand substitution, labor substitution, moat decay, and pricing pressure. The firm identified sub-industries most susceptible to disruption and then used pre-trained prompts to assess stock-specific risks.

Stocks Facing Significant AI Risk

Several prominent companies have been flagged as particularly vulnerable:

  • Unity Software: AI-generated content could lower switching costs for developers, diminishing the appeal of Unity’s ecosystem. Unity’s stock has plummeted 59% in 2026.
  • Datadog, MongoDB, and ServiceNow: These software companies are also facing disruption fears.
  • MongoDB: AI coding tools could weaken the necessitate for specific database architectures, reducing customer loyalty.
  • Duolingo: The language learning platform faces competition from AI tutors, potentially commoditizing language education. Shares have fallen 42% this year.
  • Robinhood: AI agents could disintermediate retail trading, impacting Robinhood’s business model. The stock is down 33% year-to-date.
  • Accenture and DoorDash: These companies are also included in Jefferies’ risk basket.

Beyond Software: Broader Implications

The impact of AI extends beyond the software sector. The potential for labor substitution, for example, could affect a wide range of industries. Asset repricing and demand substitution are also concerns across multiple sectors. While the software sector currently trades at a similar PE ratio (21x) to the broader market, Jefferies suggests it could trade at a discount given the uncertainties surrounding AI’s impact.

AI is Already Making Money

Despite concerns about profitability, Brent Thill of Jefferies notes that AI is already generating revenue. The backlog of contract signings across major tech vendors is $700 billion, exceeding capital expenditures by over 200%. Microsoft has demonstrated the ability to expand operating margins while investing in AI, suggesting pricing power and positive economic output.

Frequently Asked Questions

Q: Is AI really a threat to jobs?
Currently, AI is primarily augmenting jobs rather than replacing them. However, long-term job losses are anticipated.

Q: Which sectors are most vulnerable to AI disruption?
Software-as-a-service, insurance, logistics, and real estate are currently facing significant disruption risks.

Q: Is it too late to invest in AI?
No, experts believe AI is still in its early stages, and there are opportunities to invest across the entire AI value chain.

Q: What is the “AI Paradox”?
The “AI Paradox” refers to the simultaneous potential and risk that AI presents to businesses and investors.

Did you understand? The AI market size is expected to reach over $4 trillion by 2033, a 25x increase from $189 billion in 2023.

Pro Tip: Diversifying your portfolio across the AI value chain, rather than focusing solely on “Magnificent 7” tech companies, could offer a broader and more resilient approach to investing in AI.

Stay informed about the evolving landscape of AI and its impact on the market. Explore more articles on technology and investment strategies to create informed decisions.

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Entertainment

3 themes that drove Wall Street’s wild week and the new U.S.-Iran conflict wildcard

by Chief Editor
written by Chief Editor

Market Turmoil: AI, Geopolitical Risk, and the Investor Landscape

Stocks experienced significant volatility last week as investors grappled with the dual forces of artificial intelligence disruption and escalating geopolitical tensions. The situation intensified following U.S. And Israeli strikes on Iran, with President Trump calling for regime change. This comes on the heels of ongoing concerns about AI’s impact on the economy, adding another layer of uncertainty to the market.

The Iran Conflict and Oil Price Shocks

The recent military actions in Iran have sent shockwaves through global markets, particularly impacting oil prices. Concerns about potential disruptions to crude supply from the Middle East led to a surge in prices on Friday. This geopolitical risk is compounding existing anxieties about economic stability.

AI Disruption: Job Losses and Sector Rotation

Fears surrounding AI-driven job losses continue to weigh on investor sentiment. A recent report highlighted the potential for significant white-collar unemployment by 2028, triggering a sell-off in financial stocks. This has led to a rotation away from high-growth chip stocks towards more defensive sectors like enterprise software, though even that sector is facing disruption.

Fintech firm Block’s recent layoffs, cutting nearly half its workforce, further fueled these concerns. The S&P 500 and Nasdaq both experienced their worst monthly losses since March 2025 in February, declining nearly 1% and 3.4% respectively.

Chipmakers Under Pressure, AI Industrials Rise

Despite strong quarterly results, Nvidia shares fell sharply last week, reflecting a broader market correction in the chip sector. Broadcom followed suit, indicating a shift in investor preference. Conversely, companies benefiting from the infrastructure supporting AI, such as Corning (fiber optic cables) and Qnity Electronics (materials for AI chips), saw significant gains. Qnity Electronics, boosted by a strong earnings report following its split from DuPont, was the biggest weekly portfolio winner.

Pro Tip: Pay attention to companies enabling the AI revolution, not just those directly developing AI technologies. The supporting infrastructure is poised for substantial growth.

Software Sector Swings and Cybersecurity Concerns

Salesforce experienced a rebound following a period of underperformance, aided by better-than-expected earnings and positive commentary on its AI-powered Agentforce platform. However, concerns remain about the long-term impact of AI on Salesforce’s traditional software-as-a-service model. Cybersecurity firms CrowdStrike and Palo Alto Networks faced headwinds after Anthropic announced a latest cybersecurity tool, raising competition concerns.

Financials Face Headwinds

The viral research report predicting widespread white-collar job losses due to AI adoption set pressure on financial stocks. Capital One, Wells Fargo, and Goldman Sachs all declined following the report’s publication. However, some investors viewed the weakness as a buying opportunity.

Did you know? The market often overreacts to initial reports, creating opportunities for long-term investors.

The Trump-Anthropic Conflict: A New Layer of Risk

President Trump’s recent directive to U.S. Government agencies to cease using Anthropic’s AI tools, coupled with the designation of the company as a national security threat, adds another layer of complexity to the AI landscape. This stems from Anthropic’s refusal to grant the military unbridled access to its technology. This action highlights the growing tension between AI innovation and national security concerns.

Looking Ahead: Key Earnings and Data Releases

Investors will be closely watching Broadcom’s earnings report this week. CrowdStrike’s earnings release is also on the horizon. Key economic data, such as the producer price index, will continue to influence market sentiment.

Frequently Asked Questions

  • What is driving the recent market volatility? The primary drivers are concerns about AI-driven job losses and escalating geopolitical tensions, particularly related to the conflict in Iran.
  • Which sectors are currently favored by investors? AI infrastructure companies are currently favored, while chipmakers are facing headwinds.
  • What is the significance of the Trump-Anthropic conflict? It highlights the growing tension between AI innovation and national security concerns, and could impact the broader AI industry.
  • How are oil prices being affected? Oil prices have surged due to concerns about potential supply disruptions from the Middle East.

Explore more articles on market analysis and AI investing to stay informed about the latest trends. Subscribe to our newsletter for regular updates and expert insights.

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Entertainment

Nvidia earnings are out after market close. Here’s what Wall Street expects to see

by Chief Editor
written by Chief Editor

Nvidia’s Reign at $4 Trillion: Can It Weather the Tech Sell-Off?

Nvidia currently stands alone as the last member of the $4 trillion market capitalization club, following the recent dips of Alphabet, Apple, and Microsoft. Investors are keenly watching as the chipmaker prepares to release its fiscal fourth-quarter earnings report on Wednesday, February 25, 2026, amidst a broader market sell-off affecting growth stocks.

The Magnificent Seven: A Shifting Landscape

The tech landscape is undergoing a recalibration. Although Nvidia has seen a 5.6% increase in its stock value year-to-date, other members of the “Magnificent Seven” – a group of leading tech companies – have experienced declines. Microsoft and Alphabet are down approximately 18% and 0.7% respectively. This divergence highlights Nvidia’s current strength, but also raises questions about its ability to maintain its position.

Earnings Expectations and Analyst Sentiment

Wall Street holds high expectations for Nvidia’s earnings. Analysts predict adjusted earnings of $1.53 per share on revenue of $66.2 billion. A significant number of analysts maintain a positive outlook on the stock. Of the 66 analysts covering Nvidia, 23 have a strong buy rating, 38 a buy rating, and only four have a hold rating.

JPMorgan currently has an overweight rating on Nvidia shares, with a year-end price target of $250, representing a potential 29.6% upside from Tuesday’s close. Analysts point to strong AI capital expenditures and ongoing demand for AI compute as key drivers for their bullish outlook.

Valuation and Growth Potential

Nvidia’s valuation is largely based on its projected earnings growth. Its price-to-earnings (P/E) ratio is currently 46.5, but falls to 24.2 when considering future earnings estimates. This is comparable to the S&P 500’s forward P/E ratio of 23.6, suggesting Nvidia isn’t drastically overvalued given its growth trajectory.

With $99.2 billion in trailing-12-month net income, Nvidia is poised to potentially become the world’s largest and most profitable company in the coming years.

Key Catalysts to Watch

Several factors could influence Nvidia’s performance in the near term. Analysts are closely monitoring the ramp-up of Blackwell Ultra rack volumes and accelerating demand for Vera Rubin. Rising memory costs are not expected to be a significant issue due to the robust demand for AI compute.

Upcoming events, such as CEO Jensen Huang’s keynote presentation at a TMT conference and the GTC developer event in mid-March, are expected to provide further insights into the Vera Rubin ramp and potential opportunities from the Groq acquisition.

Analyst Perspectives

  • Morgan Stanley: Overweight rating, $250 price target. Expects Nvidia to trade up on good results, with acceleration in near-term drivers.
  • Wolfe Research: Outperform rating, $275 price target. Nvidia remains their top pick due to its competitive positioning and strong growth runway.
  • HSBC: Buy rating, $310 price target. Believes demand for GB200/GB300 racks will remain solid.
  • RBC Capital Markets: Outperform rating, $245 price target. Forecasting strong Vera Rubin demand and healthy tech capex levels.
  • JPMorgan: Overweight rating, $250 price target. Expects solid demand in PC gaming to offset declines in PC OEM.

Pro Tip

Keep a close eye on Nvidia’s guidance for future revenue and earnings. The company has a strong track record of “beat-and-raise” results, which often drive further upward revisions in estimates.

FAQ

Q: What is Nvidia’s current market capitalization?
A: Approximately $4.58 trillion.

Q: When is Nvidia’s earnings report scheduled?
A: After Wednesday’s close, February 25, 2026.

Q: What is driving the positive sentiment towards Nvidia?
A: Strong demand for AI compute, a compelling valuation, and a history of delivering strong results.

Q: What are the potential risks to Nvidia’s investment thesis?
A: Maintaining its high growth rate as it becomes a larger company.

Q: What is the Blackwell Ultra rack?
A: A key product driving Nvidia’s growth, with analysts expecting a strong ramp in volumes.

Did you know? Nvidia could become not only the largest company in the world but also the most profitable within the next couple of years.

Stay informed about the latest developments in the tech industry. Explore more articles on our website to gain valuable insights and stay ahead of the curve.

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Business

David Ellison’s rocky box office history

by Chief Editor
written by Chief Editor

David Ellison’s Paramount: A Hollywood Power Play and the Future of Studio Acquisitions

David Ellison, CEO of Paramount Skydance, is locked in a high-stakes battle to acquire Warner Bros. Discovery (WBD), a move that signals a potential reshaping of Hollywood. After an initial, unsolicited offer in September, Ellison has persistently pursued WBD, even launching a hostile tender offer and securing a waiver from Netflix, which had previously reached an agreement to acquire parts of WBD. This aggressive strategy underscores a broader trend: the consolidation of power within the entertainment industry.

The Allure of Warner Bros. Discovery

Warner Bros. Was the second-highest grossing studio domestically in 2025, a significant draw for Ellison. The studio’s extensive library of intellectual property – including DC superheroes, Harry Potter, Lord of the Rings, and Game of Thrones – represents a substantial asset. Paramount’s current franchise portfolio, while successful with properties like “Top Gun: Maverick” and the “Mission: Impossible” series, doesn’t quite match the breadth and established fanbase of WBD’s offerings.

According to Paul Dergarabedian, head of marketplace trends at Comscore, acquiring Warner Bros. Would “add tremendous horsepower both in terms of brand identity and revenue generating potential” to any portfolio.

Skydance’s Box Office Track Record: Hits and Challenges

Skydance’s success has been heavily reliant on the “Mission: Impossible” franchise, starring Tom Cruise. Six of Skydance’s highest-grossing films globally feature Cruise, with “Top Gun: Maverick” becoming the studio’s first and only billion-dollar film. However, beyond “Top Gun: Maverick,” only five Skydance films have exceeded $200 million domestically.

The recent “Mission: Impossible – The Final Reckoning” generated $599 million globally, but with a reported production budget of $400 million, the film’s profitability is less certain when factoring in marketing costs and revenue sharing with theaters. This highlights a broader challenge for studios: maintaining profitability in an era of rising production budgets and shifting consumer habits.

The Paramount-WBD Bid: A Strategic Shift

Ellison’s $108.4 billion bid for all of WBD’s assets, including its TV networks (CNN, TBS, TNT), distinguishes it from Netflix’s offer, which focused primarily on the film studio and streaming assets. Ellison argues that Paramount’s offer is “better for Hollywood” and “pro-competitive,” aiming to preserve the legacy of the industry. This approach reflects a commitment to the traditional theatrical model, contrasting with Netflix’s earlier prioritization of streaming releases.

The Future of Hollywood Consolidation

The Paramount-WBD saga is indicative of a larger trend toward consolidation in the entertainment industry. As streaming services compete for subscribers and theatrical releases face uncertainty, major players are seeking to acquire valuable intellectual property and expand their market share. This consolidation raises concerns about potential job losses, reduced competition, and a decrease in creative diversity, as highlighted by Hollywood guilds.

Shawn Robbins, director of analytics at Fandango, notes that Paramount is seeking to bolster its franchise portfolio, recognizing the importance of established brands in attracting audiences. However, simply possessing well-known franchises isn’t a guarantee of success; consistent box office performance remains crucial.

FAQ

What is David Ellison trying to achieve by acquiring Warner Bros. Discovery?

Ellison aims to create a larger, more competitive entertainment company with a stronger portfolio of intellectual property and a broader reach in both theatrical and streaming markets.

Why is Warner Bros. Discovery such a desirable asset?

WBD possesses a vast library of valuable franchises, including DC Comics, Harry Potter, and Game of Thrones, making it an attractive target for acquisition.

How does Skydance’s box office track record compare to other studios?

Skydance has achieved significant success with the “Mission: Impossible” and “Top Gun” franchises, but its overall track record is less consistent than that of major studios like Disney or Warner Bros.

What are the potential consequences of increased consolidation in Hollywood?

Increased consolidation could lead to job losses, reduced competition, and a decrease in creative diversity within the entertainment industry.

Disclosure: Versant is the parent company of CNBC, and Fandango.

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Entertainment

Biggest risk to the economy now? Goldman says it’s a stock market correction

by Chief Editor
written by Chief Editor

The Stock Market Correction Risk Looms Over 2026 Economic Growth

Goldman Sachs is sounding the alarm: a stock market correction poses the biggest near-term risk to the U.S. Economy’s continued expansion in 2026. Despite forecasting a 2.5% GDP growth for the year, driven by fiscal stimulus, looser monetary policy, and easing trade tensions, the firm’s economist, Pierfrancesco Mei, warns that a significant drop in equity prices could derail this progress.

The ‘Wealth Effect’ and Its Vulnerability

The core concern revolves around the “wealth effect.” This phenomenon describes how rising asset values – particularly in stocks and real estate – boost consumer confidence and spending, even when income growth is stagnant. Recent gains have disproportionately benefited higher-income households, who are more heavily invested in the market. Since the debut of ChatGPT in late 2022, the S&P 500 has risen by a cumulative 64%, while Nvidia has seen a staggering 450% surge.

A 10% pullback in the stock market in the first half of 2026 could reduce GDP growth by 0.5 percentage points, bringing the forecast down to 2.0%. A more severe 20% drawdown could shave nearly a full percentage point off the baseline estimate. This highlights the fragility of the current economic landscape.

The K-Shaped Economy and Uneven Recovery

The U.S. Economy is already exhibiting characteristics of a “K-shaped” recovery. This means that while the top 10% of consumers – who drive nearly half of all spending – continue to thrive, lower-income households are struggling with affordability. A stock market correction would exacerbate this disparity, turning the wealth effect from a positive driver into a drag on consumption, particularly in the latter half of 2026.

Did you understand? Consumer spending accounts for approximately two-thirds of the U.S. Economy, making it a critical indicator of overall health.

AI, Job Displacement, and the Broader Risk Landscape

While a stock market correction is the most immediate concern, Mei notes that a recession wouldn’t likely be triggered by a single factor. The confluence of risks – including a stock market selloff, AI-driven job displacement, and limited productivity gains – could create a more serious economic downturn. The Federal Reserve is anticipated to respond to such a scenario with interest rate cuts.

Recent analysis suggests that job losses in industries affected by AI have been moderate so far, but the full impact remains to be seen. The trend of “jobless growth,” where GDP increases without significant job creation, is expected to continue, with productivity gains from AI outpacing labor supply growth.

Historical Trends and Midterm Election Year Volatility

Historically, stock market corrections have been more pronounced during midterm election years, averaging intra-year declines of 19%. A correction is generally defined as a 10% or more drop, while a bear market is a decline of 20% or more.

Pro Tip: Diversifying your investment portfolio can help mitigate the risk associated with stock market volatility.

FAQ

Q: What is a stock market correction?
A: A stock market correction is a decline of 10% or more in stock prices, typically measured from a recent peak.

Q: What is the ‘wealth effect’?
A: The ‘wealth effect’ is the tendency for people to spend more when their assets, like stocks and real estate, increase in value.

Q: What is a K-shaped economy?
A: A K-shaped economy is one where different segments of the population experience vastly different economic outcomes, with a widening gap between the wealthy and those struggling financially.

Q: What is Goldman Sachs’s GDP growth forecast for 2026?
A: Goldman Sachs forecasts a 2.5% GDP growth for the U.S. Economy in 2026.

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