Investing.com – U.S. stock index futures fell in evening trading on Wednesday, with losses concentrated in technology stocks, while shares of favorite Nvidia slipped as a disappointing revenue forecast overshadowed strong earnings.

Nvidia’s gains widened the outflows from technology stocks seen in recent weeks, with the prospect of lower interest rates leading to investments in more economically sensitive sectors. That trading also resulted in losses during Wednesday’s session, with Wall Street indexes falling from record highs.

fell 0.7% to 5,572.50 points, while by 19:14 ET (23:14 GMT) it had fallen 1.2% to 19,192.75 points, settling at 41,175.0 points.

Nvidia slumps as weak outlook overshadows strong earnings and massive share buybacks

NVIDIA Corporation (NASDAQ:) shares fell 7.5% to $116.18 in after-hours trading, hitting a two-week low.

While the company reported stronger-than-expected earnings for the May-July quarter and also announced a $50 billion share buyback, its revenue forecast for the current quarter disappointed investors hoping for better growth, especially after a year of above-average earnings.

Nvidia forecast revenue of $32.5 billion, plus or minus 2 percent, compared with Reuters estimates of $31.77 billion and Bloomberg estimates of $31.9 billion. Reports from both publications suggested Nvidia’s forecast missed some analysts’ expectations.

Nvidia’s gross margin also fell short of expectations in the July quarter, as did the margin outlook for the current quarter.

The release sparked concerns that the artificial intelligence-fueled profit boom could slow – a trend that was more evident in other major technology stocks’ earnings released in July.

Nvidia has seen its valuation jump 150% this year on the hype surrounding artificial intelligence. The stock was also near record highs, making it vulnerable to the massive profit-taking that has hit the entire technology sector hard.

Other major technology stocks fell following Nvidia’s earnings release, with chipmakers bearing the brunt of the losses.

Wall Street falls from record highs, PCE data expected

Wall Street indexes fell from record highs on Wednesday as technology stocks sold off ahead of Nvidia’s earnings announcement.

The fell 0.6% to 5,592.18 points, while the fell 1.1% to 17,552.44 points, having lagged significantly behind its peers in recent sessions. The fell 0.4% to 41,091.42 points, benefiting from its relatively lower weighting of technology stocks.

Growing expectations of a rate cut in September had boosted Wall Street indices in recent sessions, although gains this time were more focused on economically sensitive sectors.

The data – the Federal Reserve’s preferred inflation indicator – is expected on Friday and should provide further clues on inflation.