Daily Dispatch: Wall Street takes hit over AI outlook scepticism
Friday, 27 February 2026
Market Summary
US markets tumbled on Thursday, despite technology companies - including the world's most valuable publicly traded company and AI leader Nvidia - posting better-than-expected financial results.
Investors continue to grow wary of AI stocks, amid concerns of rapidly increasing valuations and how long that can continue.
The tech-heavy Nasdaq fell 1.9%, the S&P 500 fell 1.1% and the Dow Jones declined 0.3%.
In Asia, markets mostly rose, driven by a weaker US dollar and gains in company earnings coming from AI-driven chip sales.
Read more:
Alcohol consumption drops sharply across New Zealand as venues call for tax relief
Nelson wine company Kahurangi ceases trading after tipped into liquidation
Business travellers returning to air bright spot for loss-making Air New Zealand
European indexes were also mostly higher in their latest trading session, although the pan-European Stoxx 600 closed just below the flatline.
Back here, a loss at the half year for Air New Zealand dominated headlines, but despite the airline’s travails, the S&P/NZX50 gained 1.07% in the day.
The national carrier reported a post-tax loss of $40 million for the first six months of the year, compared with an $89m profit in the same period a year earlier. The reason, the airline said, was increased costs, ongoing engine issues and the high cost of living slowing the return of domestic demand.
Most other big and small companies reporting had a more upbeat story on Thursday. Heartland Bank reported a big boost in profits and a new brand ambassador in the shape of Judy Bailey. Also reporting a bumper profit was Sky TV, which said it would be “lightening up” its programming. And Kiwibank saw its profits rise 12% for its first half year, as mortgage repayments gained steam.
Other gainers included the NZX itself - profit up 20.2% on a like-for-like comparison on the period prior; The Colonial Motor Company saw a 50% growth of profit to $10.4m; but Precinct Properties’ net profit after tax fell to $2.9m from $9.2m in prior period. Minnows Me Today saw revenue of $2.55m and a loss from continuing operations of $902,000, an improvement of almost 40% on last year’s loss of $1.48m, while Solution Dynamics produced a net profit of $210,000 down 90.9% over the last period.
Gainers on the main board included Gentrack, up 7.63%, after an upbeat AGM on Wednesday. Michael Hill International rose 6.25%, Rua Gold was up 5.26%, and retirement plays Ryman and Summerset were up 5.08% and 4.18% respectively.
Decliners included Pacific Edge, down 11.11%, a slight dip in what has been substantial gain for most of the last two weeks. WasteCo fell 8.33% and PaySauce dropped 7.69%.
In Sydney the S&P/ASX 200 advanced 0.51% on Thursday. Top gainers included IT services firm Megaport, which gained 12.59% on upgraded guidance. Radiopharmaceutical imaging franchise Telix Pharmaceuticals rose 10.87% on a range of positive financial news from the company.
While we slept
AI frontrunner Nvidia’s stock price has fallen 5%, even despite the chipmaker reporting better-than-expected financial results. Nvidia’s earnings were released at a time when there has been renewed investor concerns around the AI infrastructure boom. The US company’s revenue increased 73% to US$68.13 billion, ahead of analyst estimates of just over US$66b in its fourth-quarter results.
Rolls-Royce has raised its profit outlook, and has plans for a US$12 billion share buyback as demand for its engines boosts growth. The company expects FY26 underlying operating profit of between £4 billion and £4.2b, significantly higher than expected by analysts. It also announced £2.5 billion of share buybacks would be completed this year as part of a multi-year program of up to £9 billion. Rolls-Royce’s shares rose 7% following the release of its earnings update on Thursday.
What’s up today
In today’s The Post, Tom Pullar-Strecker reports Hospitality NZ has renewed its call for a reduction in excise duty on beer, Aimee Shaw reports Nelson wine company Kahurangi Estate has ceased trading after being tipped into liquidation at the end of last year, and Roeland van den Bergh reports business travellers are returning to the air is a bright spot for Air New Zealand.
It is financial results season, and today NZX-listed companies Port of Tauranga, Vista, Delegat, Summerset, Seeka and Move Logistics will release their latest earnings data. The Financial Services Council will also host its annual Outlook event today.