S&P 500, Nasdaq, Dow rally ahead of Nvidia earnings; Trump trade stocks fade

The Indian Nifty and Sensex were closed for trading.

U.S. stocks traded with firm gains during mid-day on February 26, gaining for the first time in five sessions as investors awaited earnings from artificial intelligence powerhouse Nvidia. In the previous session, weaker-than-expected consumer confidence data raised question marks among investors on the strength of the US economy.

At about noon GMT, The S&P 500 rose 0.84 percent, while the tech-heavy Nasdaq Composite gained 1.3 percent. The Dow Jones Industrial Average pared slight gains but still traded in the positive. Nvidia investors got a much-needed breather after the stock price surged over 4 percent ahead of its highly anticipated fourth-quarter results, set to be released after the market closes. Before today, the stock had fallen for three consecutive sessions.

Nvidia’s earnings come at a crucial moment, with concerns emerging over the staying power of the AI-driven market rally. The rise of DeepSeek has added fresh uncertainty, while Nvidia and other high-growth stocks have shown signs of fatigue—shares of the chipmaker have slipped 2 percent so far in 2025.

Meanwhile, sectors that had surged in the wake of Donald Trump’s election victory—such as cryptocurrencies, industrials, and small caps—have started to lose momentum, reversing some of their earlier gains.

Health insurance and hospital stocks tumbled on Wednesday after the House of Representatives approved a government spending bill that includes $880 million in cuts to the Energy and Commerce Committee, which oversees Medicaid and Medicare. The reductions come at a time of rising medical costs, adding strain to federal and state health programs.

Medicaid-focused insurers Molina and Centene each slid 6 percent, while Community Health led losses among hospital stocks, plunging 6.5 percent. Universal Health and HCA Holdings also retreated, falling 3.5 percent and 3.7 percent, respectively.

Another stock that grabbed headlines was Grocery Outlet, plummeting 28 percent after the discount retailer fell short of earnings expectations and unveiled a restructuring plan that includes job cuts and a slowdown in new store openings.

Investors have been grappling with signs of economic weakness, including softer retail sales and a decline in consumer confidence. A weaker-than-expected reading from the Conference Board on Tuesday added to concerns about the strength of consumer spending, pressuring the major indexes.

Asian Indices gain

Hong Kong’s Hang Seng index closed the day around 3.27 percent higher at 23,877. The gains came after a budget announcement that aims to develop the country into an artificial intelligence hub. South Korea’s Kospi closed 0.41 percent higher at 2,641.09 while Mainland China’s CSI300 index ended the day 0.87% higher at 3,959.94. Australia’s S&P/ASX 200 fell 0.14 percent to 8,240.70.

The Indian Nifty and Sensex were closed for trading.