Closing Bell: Tech Slides Again as NVDA Extends Drop; Defensives Rise on Lower Yields
U.S. equities closed lower as weakness in mega-cap technology and financials weighed heavily on the major indices. The Nasdaq remained under pressure after failing to reclaim its 50-day moving average on Wednesday, reinforcing technical caution. The Dow Jones Industrial Average posted one of the largest percentage declines among the major benchmarks, dragged down by selling in financial and tech shares. Meanwhile, defensive and rate-sensitive sectors outperformed as Treasury yields eased. The VIX climbed back above 20, reflecting a renewed rise in volatility after earlier stabilization.
Three things that mattered today
1) NVDA extends selloff; tech momentum fades
Shares of NVIDIA (NVDA) fell for a second consecutive session, deepening the AI-led pullback that began earlier this week. With the Nasdaq unable to reclaim its 50-day moving average, traders interpreted the failed technical bounce as a sign of waning short-term momentum. Broader semiconductor and software names moved lower in sympathy, keeping pressure on growth-heavy indices. The selloff reflected profit-taking after an extended run and positioning risk into month-end rather than a fundamental collapse in AI demand.
2) Defensive and rate-sensitive sectors catch bids
As yields slipped, defensive cyclicals and bond-proxy sectors moved higher. Staples, Health Care, Utilities, and Real Estate outperformed, with real estate benefiting directly from the move lower in long-term rates. Energy also held firm despite broader equity weakness, supported by stable crude prices. The rotation suggested investors were dialing back risk exposure rather than exiting the market entirely.
3) Select standouts: NFLX and DELL
Despite tech pressure, there were pockets of strength. Updated news surrounding Netflix gained fresh momentum after news broke that it would maintain capital discipline by refusing to overpay in a bidding war for Warner Bros. Discovery. Solid market reaction in NFLX helped cushion communication services. Dell Technologies (DELL) stood out within tech hardware, gaining on optimism around enterprise AI server demand and strong backlog visibility. While software broadly declined alongside semiconductors, Dell’s positioning in AI infrastructure spending insulated it from the broader weakness.
Sector performance
Leaders included Staples, Health Care, Utilities, Real Estate, and Energy, reflecting a clear defensive tilt. Laggards were Technology and Financials, which pressured the Dow and Nasdaq. The tape suggested risk reduction rather than panic, with money rotating into lower-volatility sectors.
Volatility and rates
The VIX moved back above 20, signaling elevated caution. Treasury yields edged lower, supporting real estate and utilities while undermining bank profitability narratives within financials. The macro backdrop remains stable but more sensitive to technical levels and positioning shifts.
Bottom Line:
With NVIDIA extending its slide and the Nasdaq struggling at key technical levels, markets shifted into a defensive posture. Lower yields supported staples, health care, and real estate, while select names like Netflix and Dell bucked the tech downturn. Manufacturing data on Monday will help determine whether this pullback deepens or stabilizes into early March.
What’s next — Monday, March 2 (ET)
Economic data
- 9:45 a.m. — S&P Global Manufacturing PMI (Feb, final)
- 10:00 a.m. — ISM Manufacturing PMI (Feb)
Manufacturing activity will provide a fresh read on industrial momentum and demand durability as the first quarter progresses.
Earnings
Before market open
- ADT (ADT)
- Sealed Air (SEE)
- California Resources (CRC)
After market close
- AST SpaceMobile (ASTS)
- MongoDB (MDB)
- Riot Platforms (RIOT)
- Core Scientific (CORZ)
- Plug Power (PLUG)
- StoneCo (STNE)
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