Nvidia denies rift with OpenAI, while software and asset management stocks plunge

In a recent market update, Advanced Micro Devices (AMD) reported its fourth-quarter earnings, surpassing Wall Street's projections for revenue and profits. However, this success was overshadowed by a more than 8% drop in shares during after-hours trading due to disappointing future guidance. Meanwhile, Nvidia, AMD's major competitor, is also navigating through its challenges. CEO Jensen Huang reassured investors in an interview with CNBC's Jim Cramer that there is "no drama involved" between Nvidia and OpenAI. His comments come in light of Nvidia's significant $100 billion investment in OpenAI, which has reportedly been put on hold according to a recent Wall Street Journal report. Following Huang's remarks, Nvidia's shares dipped by over 3.4%. The broader market experienced a downturn as well, with the S&P 500 declining by 0.84% and the Dow Jones Industrial Average falling 0.34%. This was despite a brief rally earlier in the day that saw the Dow touch a record high. The Nasdaq Composite, heavily weighted toward technology, dropped 1.43%, primarily due to declines in software companies like ServiceNow and Salesforce, both of which saw nearly 7% decreases. Investors appear to be concerned that advancements in artificial intelligence may erode the value of these tech firms. Additionally, asset management companies with substantial holdings in private credit markets, such as Blue Owl, Ares Management, and KKR, also took hits. Notably, the software sector comprises around 20% of private loans from direct lenders, according to data from iCapital. On a more positive note, U.S. President Donald Trump recently signed a bill to fund the federal government, ending a brief shutdown that began on Saturday. Looking ahead, markets are set to monitor upcoming PMI releases from Japan, China, and India. In other significant news, the merger between xAI and SpaceX has emerged as the largest in history, valuing the combined entity at a staggering $1.25 trillion. SpaceX is reportedly valued at $1 trillion, while xAI stands at $250 billion. In corporate leadership changes, Disney has appointed Josh D'Amaro as its new CEO, set to take over from Bob Iger on March 18. Additionally, Stephen Miran has stepped down from his role as chair of the Council of Economic Advisers, having been on leave since September 2025 to join the Federal Reserve Board of Governors. The day also saw Bitcoin continue its downward trend, while spot gold and silver managed to recover some losses. In Europe, the Stoxx 600 index saw a minor increase of 0.1%. Legendary investor Ray Dalio warned that the world is on the verge of a capital war, citing increasing geopolitical tensions and unpredictable capital markets during a recent speech at the World Governments Summit in Dubai. As the market adjusts to these developments, all eyes remain on the evolving landscape of technology and investment.