Tech stocks tumble as Nvidia CEO Jensen Huang resigns, sparking market volatility
Nvidia shares fell 2% on Friday after CEO Jensen Huang resigned amid personal scandal investigations, prompting a broader sell‑off in semiconductor stocks. The Nasdaq Composite closed down 0.9% at 25,136, while the S&P 500 slipped 0.4% to 7,561 and the Dow Jones rose 0.1% to 52,347. AMD, Broadcom and Intel also declined, and Cisco dropped 6.2% despite a earnings beat. The market also absorbed a 0.3% month‑over‑month rise in the Producer Price Index, keeping Fed rate‑hike odds at about 90% for the December meeting.
Why it matters
The resignation raises uncertainty over Nvidia’s leadership and the AI trade, pressuring chip‑related equities and widening market volatility (the company’s stock fell 2%). The PPI data kept expectations of a 0.25‑percentage‑point Fed rate hike at roughly 90%, which could affect borrowing costs for investors.
Key facts
- 1Nvidia shares fell 2% on Friday after Jensen Huang resigned as CEO and board member. kiplinger.com
- 2The Nasdaq Composite closed down 0.9% at 25,136. kiplinger.com
- 3The S&P 500 lost 0.4% to finish at 7,561. kiplinger.com
- 4The Dow Jones Industrial Average rose 0.1% to 52,347. kiplinger.com
- 5Producer Price Index rose 0.3% month‑over‑month and 6.5% year‑over‑year. kiplinger.com
- 6Cisco shares dropped 6.2% despite reporting a beat‑and‑raise quarter. kiplinger.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.