#Why Did Nvidia Shares Decline After the GTC Event?
Nvidia's recent stock performance has raised concerns among investors as shares have dipped below their 200-day moving average. This drop follows the company’s GTC event, which did not meet the expectations for stock revival. During the event, the CEO outlined potential revenue from the Blackwell and Rubin product lines, projected to contribute significantly to data center revenue—up to $1 trillion through 2027.
On the trading day reported, Nvidia shares saw a decrease of approximately 3.5%, nearing $172, while approaching a critical support threshold around $170 established since September 2025. With the 200-day moving average hovering around $178, a closing price below this level could indicate a shift in market trends. A confirmed drop would suggest a technical breakdown, particularly noteworthy as the stock had remained above this long-term trend line since recovering from earlier tariff-induced selloffs in May 2025.
#How Are External Factors Impacting the Market?
The challenges faced by Nvidia are part of broader market conditions. There has been significant volatility recently, attributed to geopolitical tensions and shifting monetary policies. The ongoing conflict between the U.S. and Israel against Iran has driven crude oil prices higher, with Brent crude surpassing $105 per barrel and U.S. crude nearing $99. In tandem, gasoline prices have experienced a rise of over 30% since the conflict began, intensifying inflation concerns.
In February, U.S. consumer prices increased by 0.3% from the previous month, marking an annual rise of 2.4%. Additionally, producer prices surged by 1.1% in February, the largest monthly increment since August 2023. The Federal Reserve kept interest rates unchanged during a recent meeting, emphasizing the uncertain economic outlook linked to Middle Eastern developments. Market expectations now suggest limited potential for rate cuts until mid-2027, adding further pressure to equities.
#What is the Current Status of Key Equity Indices?
These market dynamics have led to new lows in key equity indices. As of the latest reports, the S&P 500 is approaching 6,495, indicating a decline of about 7% since early February. Meanwhile, the Nasdaq Composite stands near 21,535, down nearly 9% from its highs reached earlier in the month. Both indices showed further declines on the most recent trading day, influenced by rising oil prices and shifting investor reassessments of interest rate trajectories.