World shares ease on concerns about tech valuations

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By Chibuike Oguh

NEW YORK, Feb 26 (Reuters) – 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.

On Wall Street, technology and communication services were the biggest losers, with Nvidia’s shares down 4%. The Dow Jones Industrial Average rose 0.11%, the S&P 500 fell 0.70%, and the Nasdaq Composite fell 1.37%.

“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%. MSCI’s All Share Index was down 0.30% after rising to a record high of 1,063.86.

(Reporting by Chibuike Oguh in New YorkEditing by Rod Nickel)