An index of global equity markets eased after hitting a fresh record high on Thursday as concerns about lofty valuations of leading technology companies weighed on markets after artificial intelligence chipmaker Nvidia reported strong quarterly results.
Shares on Wall Street and in Europe traded down as investors digested another blowout quarter from Nvidia, the world’s most valuable company, but worried about its market value even as it forecast that first-quarter revenue would come in at a whopping $78 billion ($A110 bn).
On Wall Street, technology and communication services were the biggest losers, with Nvidia’s shares down 4 per cent. The Dow Jones Industrial Average rose 0.11 per cent, the S&P 500 fell 0.70 per cent, and the Nasdaq Composite fell 1.37 per cent.
“People are getting concerned about lofty valuations even though when you look at a company like Nvidia, the estimates, cash flow, and everything else are dramatically higher,” said Thomas Plumb, chief executive and portfolio manager at Plumb Funds in Madison, Wisconsin.
“But I think the sentiment will eventually match up with the realities,” said Plumb, who has Nvidia as his largest investment holding.
In Europe, the broad STOXX 600 index fell 0.11 per cent. MSCI’s All Share Index was down 0.30 per cent after rising to a record high of 1,063.86.
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