Key Takeaways
- Major US indices closed sharply lower, with the NASDAQ plummeting 2.03%, the S&P 500 down 1.56%, and the Dow Jones falling 1.33%.
- Several major companies reported quarterly earnings with mixed results. Applied Materials surged on a strong outlook, while Coinbase and Pinterest missed revenue estimates.
- Precious metals experienced a dramatic sell-off, with gold plunging 4.1% and silver tumbling 11% as traders reportedly covered equity losses.
- Standard Chartered slashed its year-end Bitcoin forecast to $100,000 and warned of a potential drop to $50,000, leading to a downgrade of Coinbase to "sell."
- OpenAI announced the launch of GPT-5.3-Codex-Spark, its first AI model to run on Cerebras chips, signaling a move to diversify beyond Nvidia.
Market Sell-Off Intensifies
U.S. stock markets ended the day with significant losses, erasing earlier gains. The NASDAQ led the decline, unofficially closing down 468.49 points, or 2.03%, at 22,597.98. The S&P 500 fell 108.47 points, or 1.56%, to 6,833.00, while the Dow Jones Industrial Average dropped 664.63 points, or 1.33%, to finish at 49,456.77.
The broad-based sell-off came as investors digested a flurry of corporate earnings reports and grappled with ongoing geopolitical tensions. North Korea issued a warning to South Korea regarding airspace violations, stating that counterattack options are on the table for future incidents.
Corporate Earnings Paint a Mixed Picture
A wave of quarterly earnings reports revealed a mixed bag of results for major corporations. Applied Materials (AMAT) was a bright spot, beating first-quarter revenue and earnings estimates. The company reported revenue of $7.01 billion, surpassing the estimated $6.87 billion, and an adjusted EPS of $2.38, ahead of the $2.20 estimate. AMAT also provided a strong second-quarter forecast, with expected revenue of $7.65 billion ± $0.50 billion and adjusted EPS of $2.64 ± $0.20, both above analyst expectations.
On the other hand, Coinbase (COIN) reported fourth-quarter revenue of $1.78 billion, missing the $1.83 billion estimate. The cryptocurrency exchange also saw its subscription and services revenue fall short of expectations. The disappointing results came as Standard Chartered downgraded COIN to "sell" and cut its year-end Bitcoin forecast to $100,000, warning of a potential slide to $50,000.
Other notable earnings reports included:
- Rivian (RIVN) reported Q4 revenue of $1.29 billion, beating the estimated $1.26 billion. However, vehicle deliveries of 9,745 were slightly below the estimate of 9,964.
- Airbnb (ABNB) announced Q4 revenue of $2.78 billion, exceeding the $2.71 billion estimate, but its EPS of $0.56 missed the $0.67 expectation.
- Vertex Pharmaceuticals (VRTX) posted Q4 revenue of $3.19 billion, in line with estimates, while its adjusted EPS of $5.03 was slightly below the $5.07 forecast.
- Pinterest (PINS) missed Q4 revenue and earnings estimates, reporting revenue of $1.32 billion versus the $1.33 billion estimate and an adjusted EPS of $0.67 against a $0.69 forecast.
Commodities and Tech Under Pressure
The commodities market saw a dramatic sell-off, with gold plunging 4.1% and silver plummeting 11%. Copper also fell 2.7%. Traders were reportedly dumping metals to cover losses in the equity markets. Despite the sharp decline, some banks remain bullish on gold, citing geopolitical tensions.
In the tech sector, Google (GOOGL) is facing a new EU antitrust probe over its search ads. The European Commission alleges that the company artificially raises auction prices. This could add to the €9.5 billion in fines Google has already faced in Europe.
In a significant development in the AI space, OpenAI has launched GPT-5.3-Codex-Spark, its first AI model to run on chips from Cerebras Systems. This move is seen as an effort by OpenAI to diversify its chip suppliers beyond Nvidia and compete with rivals like Google and Anthropic in the AI coding market.
Other Notable Headlines
- The U.S. has sold over $1 billion in Venezuelan oil and expects to sell another $5 billion in the coming months. Washington will control the sales and fund flows until a representative government is established in Venezuela.
- Former President Trump has reversed his decision to exclude Democratic governors from the annual White House meeting, inviting all governors. However, not all Democrats were invited to a separate dinner, indicating ongoing political tensions.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.