S&P 500, Nasdaq Struggle Amid AI Rotation Pain

Any hopes of Nvidia moving the market higher from the morning has faded by lunch, with stocks all over the place midday. The Dow Jones Industrial Average (DJIA) is cautiously higher but has pared gains, earlier dipping into the red. The Nasdaq Composite (IXIC) and S&P 500 Index (SPX) are sharply lower, as investors process overblown AI valuations and their effect on the tech sector. Amid the shift in sentiment, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), is flirting with the 20 level.

• How are options traders handling the Nvidia pivot?
• Quantum computing stock shrugs off AI concerns.
• Plus, battery bulls dig in; Novavax stock stays hot; and Broadcom lags with semis.

Eos Energy Enterprises Inc (NASDAQ:EOSE) is seeing an unusual amount of options activity today, with 298,000 contracts traded, volume that's seven times the average intraday amount. Currently 225,000 of these are calls, including the January 2027 20-strike call. The battery firm reported a fourth-quarter revenue beat, but annual revenue fell short of estimates. EOSE is eyeing its worst daily performance on record, down 40% to trade at $6.67 today, but is still up 67% year-over-year.

Novavax Inc (NASDAQ:NVAX) stock is powering past the chop, last seen up 25.1% to trade at $11.93. The drugmaker reported a beat-and-raise in the earnings confessional, thanks in part to its partnerships with Pfizer (PFE) and Sanofi (SNY). Novavax stock is trading at its highest level since November 2024, and is now up 71% in 2026.

Broadcom Inc (NASDAQ:AVGO) stock is among the tech laggards, down 6% to trade at $312.20. Investors are cautious after the chipmaker announced a target of at least one million 3D‑stacked AI chips by 2027. AVGO has breached its 200-day moving average today and sports a year-to-date deficit of 10% ahead of its March 4 earnings report.