Wall Street’s major indexes demonstrated resilience on Thursday, recovering from early losses despite investor concerns surrounding Nvidia’s leadership changes and rising oil prices. The S&P 500, after an initial nearly 1% drop, closed down 0.4%, while the Dow Jones Industrial Average fell by 189 points. The Nasdaq Composite also bounced back, ending the day with a 0.4% decline after an initial 1.6% fall.
Nvidia shares faced significant pressure following the surprise resignation of CEO and co-founder Jensen Huang. The company’s board appointed Chief Financial Officer Colette Kress as interim CEO, a leadership change that raised questions about Nvidia’s future strategy in the AI sector. Nvidia’s stock initially plunged 14% but managed to recover some ground, finishing 4.3% lower. Despite the uncertainty, analysts still regard Nvidia as a leading supplier of AI chips, which supported a partial recovery in the technology market.
The tech sector showed mixed results as other AI-related stocks experienced varied performances. CoreWeave’s shares dropped 6.9%, and Micron Technology saw a 1.6% decline. Conversely, Broadcom and Advanced Micro Devices posted gains of 5.5% and 5.9%, respectively, as investors considered the potential for increased competition and opportunities among chipmakers.
Oil prices saw an uptick following former President Donald Trump’s dismissal of a potential agreement with Iran, causing concerns over further disruptions to global energy supplies. Brent crude rose 3.3%, reaching $95.82 per barrel. This increase in energy prices stoked inflation concerns, evidenced by the rise of the 10-year US Treasury yield to 5.12%.
Higher borrowing costs continued to challenge the housing market, with October’s existing-home sales declining to their slowest pace in over 16 years. Meanwhile, applications for unemployment benefits experienced a slight increase, although overall claims remained relatively low.
By the end of the trading session, the S&P 500 stood at 7,592.40, the Dow Jones Industrial Average at 52,297.09, and the Nasdaq Composite at 25,366.09. Internationally, markets displayed varied results, with Hong Kong’s Hang Seng Index dropping 1.3%.