Stock market today: Dow, S&P 500, Nasdaq sink after CPI data raises Fed rate-hike bets

Nvidia (NVDA) shares fell 4.2% on Tuesday, extending a 4.3% decline from Monday, as an independent board investigation into CEO Jensen Huang's ties to a businesswoman with suspected Chinese intelligence links raised concerns. The scrutiny involves Singapore-based Megaspeed, where the woman previously worked, and potential export-control violations. Nvidia's board is overseeing the investigation, with no evidence of compromised secrets. Nvidia's chips are crucial in AI and data center markets.

Nvidia (NVDA) stock fell 3% Tuesday, extending a decline amid scrutiny of CEO Jensen Huang's alleged affair with a woman suspected of being a Chinese spy. Reports indicate $7.5 billion of Nvidia hardware was shipped to China via a network linked to her. Congress and the FBI are investigating. The broader semiconductor sector saw mixed performance.

Nvidia CEO Jensen Huang admitted to an affair, sparking an independent investigation and a 7.5% drop in shares, wiping $330bn off the company's value. Concerns include national security and Huang's central role in Nvidia, a key player in the AI industry. US intelligence agencies are scrutinizing the situation, and Silicon Valley may follow.

Anthropic, an AI company, disclosed that Nvidia, Alphabet, AMD, Micron, Broadcom, Microsoft, and TSMC Partners will invest $26 billion in its IPO. Nvidia and Google each commit $10 billion, while others invest smaller amounts. The funds will support Anthropic's $900.9 billion infrastructure spending over 20 years, with $70.7 billion due by September 2027.

Nvidia shares fell 4% to $171.55 on Tuesday, extending losses from the previous session. A shareholder lawsuit alleges Nvidia and CEO Jensen Huang misled investors by not disclosing Huang's alleged relationship with a former Megaspeed executive, according to the Rosen Law Firm. The company announced an independent investigation into the matter, stating it found no evidence of national security risks.

NVIDIA's stock fell 4% to $170.67 after its board launched an investigation into CEO Jensen Huang. The probe follows reports of an alleged extramarital affair and potential national security concerns. NVIDIA's Q2 FY2027 revenue was $96.22 billion, up 105.8% YoY, with strong guidance for Q3. AMD and Broadcom gained 3% as investors rotated to rivals. The outcome of the board's investigation and NVIDIA's next earnings report are key catalysts.