Contracts for the Nasdaq 100 declined 0.6% while the chipmaker retreated 3% in extended-hours after the company’s sales forecast fell short of estimates. US stocks dipped in late hours after the S&P 500 benchmark hit a record high during regular trading. Futures for Hong Kong and Chinese stocks were weak as Meituan’s warning pushed an index of US-listed Chinese companies to its worst day in two months.
A gauge of the dollar edged down in early Asian trading. Short-dated Treasuries retreated after two days of gains, sending the yield on the benchmark two-year bond higher by one basis point to 3.62%. Oil dropped 0.5%, giving up some of the gains from the prior session.
Nvidia’s tepid outlook fueled concerns that the massive run-up in artificial intelligence spending may be losing momentum, raising doubts over the durability of one of this year’s key market drivers. Global equities have advanced since April on bets that the AI boom would continue to bolster technology earnings, even as easing tariff tensions supported broader risk appetite.
“The information feeds into niggling fears of slowing investment in the AI space and lower growth going forward,” wrote Kyle Rodda, a senior market analyst at Capital.com in Melbourne.
Nvidia’s forecast excluded data center revenue from China, a market where it has struggled with US export restrictions and opposing pressure from Beijing. The company has added about $2 trillion in market value since early April to trade near a record on optimism around the AI boom.In China, Meituan warned of major losses this quarter while waging a price-based battle with Alibaba Group Holding Ltd. and JD.com Inc., the most striking sign yet that its internet rivals are threatening its longstanding dominance of a lucrative home market.
China’s food delivery leader issued its dire prediction after reporting “irrational competition” had all but wiped out its profit in the June quarter. Meituan’s net income plummeted 97% to 365.3 million yuan ($51 million) despite a 12% rise in revenue.
Elsewhere, the Mexican government plans to increase tariffs on China as part of its 2026 budget proposal next month. Indian markets will be in focus after Wednesday’s holiday as Trump’s latest tariffs on Indian goods take effect.