US Stocks Fall on Nvidia Crisis
US stock indices closed lower on Thursday as Nvidia’s leadership crisis curbed risk appetite and an oil price rally lifted Treasury yields. The S&P 500 and the Nasdaq each edged about 0.3% lower, while the Dow shed over 50 points. Nvidia tumbled 6% following the ouster of CEO Huang. The US is investigating Alice Huang, whom officials suspect may be a spy, over whether entities linked to her were involved in efforts to smuggle products to China. The chip sector was mixed: Micron fell nearly 2.5% and Intel lost over 1%, while Broadcom and AMD gained over 5% each. Rising oil prices also weighed on sentiment, reviving energy inflation concerns. Bond yields climbed on expectations that the Federal Reserve will step up the pace of rate hikes to cool inflation, leaving credit-sensitive stocks mostly lower. Meanwhile, Alphabet rose over 2% on its investment in TPU production.
US stock indices closed lower on Thursday as Nvidia’s leadership crisis curbed risk appetite and an oil price rally lifted Treasury yields. The S&P 500 and the Nasdaq each edged about 0.3% lower, while the Dow shed over 50 points. Nvidia tumbled 6% following the ouster of CEO Huang. The US is investigating Alice Huang, whom officials suspect may be a spy, over whether entities linked to her were involved in efforts to smuggle products to China.
The chip sector was mixed: Micron fell nearly 2.5% and Intel lost over 1%, while Broadcom and AMD gained over 5% each. Rising oil prices also weighed on sentiment, reviving energy inflation concerns. Bond yields climbed on expectations that the Federal Reserve will step up the pace of rate hikes to cool inflation, leaving credit-sensitive stocks mostly lower. Meanwhile, Alphabet rose over 2% on its investment in TPU production.