US Stocks Fall With Nvidia Plunge
US stock indices fell after Nvidia president and CEO Jensen Huang resigned, injecting uncertainty into the global AI sector. The S&P 500 fell 0.8%, the Nasdaq 100 fell over 1%, and the Dow was flat. Nvidia shares sank 14% after CFO Colette Kress was named interim CEO following a board meeting that resulted in Huang's resignation, due to his involvement with a Megaspeed executive widely suspected of being a Chinese spy. Huang's stewardship of Nvidia saw the company grow to a market cap of nearly $6 trillion and led deal-making across the entire AI supply chain, implicating the global tech sector in the leadership change. AMD and Broadcom were higher, although AI infrastructure stocks sank sharply. Meanwhile, Nebius sank nearly 10% after delaying some data center capacity buildout. Still, other sectors offered some respite, rebounding after the hot CPI reading on Tuesday supported bets of more Federal Reserve rate hikes in the current tightening cycle.
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US stock indices fell after Nvidia president and CEO Jensen Huang resigned, injecting uncertainty into the global AI sector. The S&P 500 fell 0.8%, the Nasdaq 100 fell over 1%, and the Dow was flat. Nvidia shares sank 14% after CFO Colette Kress was named interim CEO following a board meeting that resulted in Huang's resignation, due to his involvement with a Megaspeed executive widely suspected of being a Chinese spy. Huang's stewardship of Nvidia saw the company grow to a market cap of nearly $6 trillion and led deal-making across the entire AI supply chain, implicating the global tech sector in the leadership change.
AMD and Broadcom were higher, although AI infrastructure stocks sank sharply. Meanwhile, Nebius sank nearly 10% after delaying some data center capacity buildout. Still, other sectors offered some respite, rebounding after the hot CPI reading on Tuesday supported bets of more Federal Reserve rate hikes in the current tightening cycle.