August 29, 2025

Hold on tight! The stock market rollercoaster took a sudden dip after Nvidia, the king of AI chips, dropped a sales forecast that left investors worried. US tech futures slipped, with Nasdaq 100 contracts falling 0.6%, and Nvidia’s shares dipped 3% after hours. Even after S&P 500 hit record highs, the buzz around artificial intelligence spending lost some steam. Why the gloom? Nvidia’s sales outlook missed the mark and did not include revenue from China’s data centers – a tricky market where US export rules and Beijing’s pressure have been hard hurdles. Kyle Rodda, a senior market analyst from Capital.com, said, "The information feeds into niggling fears of slowing investment in the AI space and lower growth going forward." Across the sea, Chinese stocks didn’t get a free pass either. Meituan, the food delivery giant, warned of massive losses due to a fierce price war with Alibaba and JD.com. The company reported a shocking 97% plunge in net income to just 365.3 million yuan ($51 million), even though its revenue jumped 12%. Meituan called the battle "irrational competition," which almost wiped out its profits in the June quarter – a fiery sign that top rivals are shaking up China’s tech market. And the spice doesn’t stop there! Mexico plans to ramp up tariffs on Chinese goods starting 2026, adding a new twist to global trade tensions. Meanwhile, eyes are glued on Indian markets as new US tariffs on Indian goods kick in, following a holiday pause. The financial world watches closely as these tariff moves might reshape trading flows and investment plans. In the bond markets, short-term US Treasury yields nudged higher, and oil prices retreated slightly, reflecting a cautious mood globally. As Nvidia’s AI boom excitement cools and Meituan’s tough fight headlines China, investors are asking: is this the start of a new market crunch or just a passing phase? Stay tuned as global markets navigate these choppy waters!

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Tags: Nvidia, Ai spending, China tariffs, Meituan, Us stock market, Indian markets,