Market Report, 2026-02-26

On Thursday, the stock market reversed course in its reaction to Nvidia’s earnings, with many stocks directly tied to the AI supply chain experiencing significant losses after the previous day’s positive response to Nvidia’s upbeat earnings and forecasts. The reaction was multifaceted. While conventional wisdom generally suggests that beating expectations on both earnings and guidance would lead to a positive price reaction, this is not necessarily true at this point in the cycle. Investors are split in their sentiment, with some expecting significantly better guidance while others believe there are long-term sustainability concerns. As a result, Nvidia’s earnings call yesterday did not satisfy either side, leading to a decline in the U.S. stock market today.

Thanks to its price-weighted index construction, the Dow Jones Industrial Average ended the day essentially flat, gaining 17 points to close at 49,499. The AI-heavy NASDAQ declined 1.16% to 25,034. The S&P 500 dipped 0.54% to 6,909. The Russell 2000, the small-cap index with lower exposure to AI, gained 0.52% to 2,677.

The bond market rallied as investors rotated into safe assets. Both the U.S. 5-year Treasury yield and the 10-year Treasury yield declined by 4 basis points, to 3.57% and 4.01%, respectively.

Weekly jobless claims data released today showed no signs of significant deterioration, further supporting the view that the labor market is stabilizing.

As we move toward the end of the week, we will receive a gauge of producer inflation as well as data on construction spending. We will continue to provide updates. Thank you for listening. This is Adams Wealth Advisors.