US stock markets saw a slight reversal on Tuesday, with the rally in equities losing momentum after a strong start to the week. As of 11 a.m. Eastern Time in New York, the S&P 500 declined by 0.3%, the NASDAQ 100 was down 0.7%, while the Dow Jones Industrial Average rose 0.3%.
The broader MSCI World Index remained unchanged, with European markets showing some resilience. The Stoxx Europe 600 index rose by 1.1%, but US tech stocks, particularly large-cap AI-related companies, faced significant sell-offs.
SoftBank’s decision to exit its investment in NVIDIA has rattled some investors. The Japanese technology group sold its entire stake for approximately $5.83 billion. The transaction came as scepticism grew about the durability of the surge in artificial‑intelligence stocks. NVIDIA’s shares slipped slightly in pre‑market trading after the sale.
The move has prompted a broader discussion about whether AI‑related valuations can keep rising. Traders note that many high‑profile technology names have climbed sharply this year. SoftBank’s sale suggests some investors might prefer to lock in gains and reallocate capital to other AI initiatives.
Meanwhile, other AI‑oriented companies are also facing scrutiny. CoreWeave, a cloud‑infrastructure provider, reported strong quarterly revenue but lowered its full‑year forecast because a data‑centre contractor fell behind schedule. The company now expects 2025 revenue between $5.05 billion and $5.15 billion, short of analysts’ projections. Its shares fell in pre‑market trading after the announcement.
The adjustment at CoreWeave illustrates how quickly sentiment can shift in the AI space. Even companies that beat earnings estimates can see their stock prices drop if future guidance disappoints. This cautious mood has led some market participants to increase short positions in technology indexes, betting that valuations may cool.