NEW YORK — U.S. stock indexes are drifting lower Thursday, and Wall Street remains subdued following a rough run where worries about the economy rattled the market.

The S&P 500 was down 0.4% in morning trading after giving up an early, modest gain. It’s coming off a painful stretch where weaker-than-expected reports on the U.S. economy knocked the index off its record set last week. The Dow Jones Industrial Average was up 103 points, or 0.2%, as of 10 a.m. Eastern time, and the Nasdaq composite was 1.1% lower.

Nvidia’s Influence on Market Sentiment

Indexes swung lower with superstar stock Nvidia, which has grown to become one of Wall Street’s most influential stocks. After initially rising at the open of trading following a better-than-expected profit report for the latest quarter, Nvidia quickly backslid to a loss of 1.2%.

Such better-than-expected performances have become routine for the company, whose chips are powering the surge into artificial-intelligence technology, but this was Nvidia’s first profit report since DeepSeek shook the entire AI industry.

After the Chinese upstart said it developed a large language model that can compete with the world’s best without using the most expensive chips, Wall Street had to question all the spending it assumed would go into Nvidia’s chips and the ecosystem that’s built around the AI boom, such as electricity to power large data centers.

Nvidia’s performance for the latest quarter, along with its forecasts for upcoming results, were “good enough to keep the debate moving in a positive direction,” according to analysts at UBS led by Timothy Arcuri. But it apparently wasn’t good enough to send its stock jumping.

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Other Market Movers and Economic Factors

Salesforce fell 4.3% despite also topping analysts’ profit expectations for the latest quarter. It gave forecasts for upcoming revenue and other financial measures that fell short.

Also weighing on the market was President Donald Trump’s latest announcement on tariffs. He said “the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled” for imports from Canada and Mexico. He also said he would add an additional 10% tariff on Chinese products on that date.

Such tariffs could push up prices for U.S. households when inflation has already shown itself to be stubborn to ease. Wall Street has been mostly hoping that such threats are merely talk and leverage that Trump will use in negotiations with other countries before ultimately inflicting less pain on the economy than feared.

But even if that were to happen, all the talk about tariffs by itself has been enough to get U.S. households to feel much more nervous about the economy and their finances. That’s dangerous if it causes them to pull back on their spending, which has been one of the linchpins keeping the U.S. economy out of a recession.

Bond Market and Economic Indicators

In the bond market, Treasury yields were swinging sharply following Trump’s tariff announcement and a couple of reports on the U.S. economy.

One gave an updated estimate on how the economy performed during the last three months of 2024. It left alone the government’s estimate for overall economic growth, which was solid, but it also raised its estimate for a measure of inflation during the quarter.

A separate report said more U.S. workers applied for unemployment benefits last week. While the number is still nowhere close to where it’s been in past recessions, it was still at a three-month high.

The yield on the 10-year Treasury rose to 4.27% from 4.26% late Wednesday. It was as high as 4.30% earlier in the morning.

In stock markets abroad, indexes were mixed across Europe and Asia. Germany’s DAX lost 1.3%, while Japan’s Nikkei 225 added 0.3%.