U.S. stock markets recorded declines primarily driven by a sell-off in shares of tech giant Nvidia and fintech firm Block. Although Nvidia presented optimal financial results, its forecasts for the coming quarters failed to meet the market's heightened expectations regarding the further pace of artificial intelligence development. The situation was worsened by concerns in London's credit sector and drastic job cuts at a company owned by Jack Dorsey.

Nvidia Disappoints with Forecasts

Despite good results, the chip giant's forecasts did not meet the expectations of investors counting on another breakthrough in the artificial intelligence sector.

Drastic Cuts at Block

Jack Dorsey's company is laying off nearly half its workforce after losing the chance for a banking license, abandoning experimental projects.

Netflix Avoids Risk

Withdrawing from the battle for Warner Bros. Discovery strengthened Netflix's stock, signaling a priority for profitability over aggressive expansion.

Recent sessions on global financial markets were marked by a revision of enthusiasm for the technology sector. The main actor was Nvidia, whose financial report—though solid—failed to sustain euphoric sentiment. Investors, accustomed to spectacular growth, reacted by selling off shares due to forecasts they deemed too conservative in the context of massive investments in artificial intelligence infrastructure. Nvidia's CEO, Jensen Huang, had to face questions about the durability of demand for next-generation graphics chips, while markets are beginning to fear a so-called "AI bubble." The semiconductor sector sell-off became the main drag on indices at the end of February 2026. Simultaneously, fintech Block recorded a sharp decline. The company announced a radical restructuring, involving the layoff of nearly half its staff. This decision is directly linked to the failure to obtain a banking license in the state of Utah, which effectively blocks the development of a full deposit offering. Jack Dorsey also decided to close unprofitable experimental divisions, focusing on salvaging the core business of Square and Cash App. Meanwhile, in London, concern is growing over the private credit sector, where the CEO of Monroe Capital pointed to a dangerous "herd mentality" among investors, which may herald an approaching liquidity crisis in this segment. In the 21st century, semiconductors have become the equivalent of oil in the industrial economy, forming the foundation for the development of cloud computing and machine learning algorithms. Against the backdrop of these perturbations, Netflix stood out positively. The streaming service's shares rose following news of its withdrawal from costly bidding for Warner Bros. Discovery assets. Analysts interpreted this decision as a sign of financial discipline in difficult times. Other tech companies, such as Snowflake and Duolingo, fared with mixed fortunes, trying to use their results to calm fears of a slowdown in the software industry. The market is currently awaiting the publication of inflation data and results from companies like Target and Broadcom, which may outline the direction for stock markets in March. „Demand for AI remains high, but we must align production capacity with real market needs in the upcoming cycles.” — Jensen Huang

Mentioned People

  • Jack Dorsey — Founder and CEO of Block, responsible for the drastic reduction in employment.
  • Jensen Huang — CEO of Nvidia, grappling with investor pressure regarding the future dominance of AI.