Nasdaq 100 Slips as Tech ETFs Struggle in Nvidia Earnings Aftermath

Tech Sell-Off Drags Nasdaq 100 Lower

The Nasdaq 100 has taken a significant hit, falling 3.38% last week. A mix of factors, from Nvidia’s post-earnings decline to broader economic worries, have weighed on the market. Let’s break down what’s behind this tech-driven slump.

Nvidia’s Earnings Shake the Market

Nvidia has been a major driver of stock market gains, but its latest earnings report delivered a twist. The company posted record Q4 revenue of $39.3 billion, beating expectations with a 78% year-over-year increase. Yet, despite these strong numbers, Nvidia’s stock dropped 8.48% on February 27th. The reason? Investor expectations were sky high, and concerns over AI competition—particularly from DeepSeek—sparked a sell-off. This decline rippled across the Nasdaq 100 given Nvidia’s massive market cap.

Broader Tech Weakness Weighs on Stocks

Nvidia was not alone in its struggles. Other tech giants saw declines last week, adding pressure to the index. Microsoft (-2.75%), Amazon (-1.99%), Alphabet (-5.22%), and Meta Platforms (-2.25%) all lost ground. With large-cap tech making up a significant portion of the Nasdaq 100, the widespread weakness dragged the entire index lower. Profit-taking may have also played a role. After strong performances in 2023 and 2024, some investors could be cashing out, especially given the current uncertainty in the economic and geopolitical landscape.

Economic and Trade Worries Add Pressure

Beyond tech sector volatility, macroeconomic factors contributed to the sell-off. A sharper-than-expected drop in existing home sales raised concerns about economic stability, prompting investors to move away from riskier assets like growth stocks.

Meanwhile, fresh trade tensions have heightened market jitters. President Trump’s announcement of new tariffs on products from Mexico, Canada, and the European Union, along with planned increases for China, has reignited fears of supply chain disruptions and inflationary pressures, further unsettling investors.

Tech ETFs Reflect the Downturn 

The broader weakness in tech stocks hit ETFs hard. Information Technology ETFs lost about 3.87% over the week, with tech-heavy funds suffering even more. The iShares NASDAQ 100 UCITS ETF (CSNDX) dropped 2.81%, while semiconductor-heavy funds like the VanEck Semiconductor UCITS ETF (SMGB) plunged 6.14%.

Here’s a comparison between Nasdaq-100 and semiconductor ETFs

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.