From The Economic Times · · 1m
US stocks drop as Nvidia turmoil hits tech sector
Nvidia CEO Jensen Huang's exit sparks tech sector losses as US stocks fall.
In brief
Nvidia CEO Jensen Huang's exit sparks tech sector losses as US stocks fall. US stocks dropped after Nvidia's CEO resignation caused tech sector declines. Originally reported by The Economic Times.
Nvidia CEO resignation
Nvidia shares dropped 3.3% heading for their longest run of weekly losses since October 2012.
“Huang resigned following scrutiny of his relationship with a businesswoman suspected by US officials of spying for Chinese intelligence”
Tech sector declines
The Philadelphia Semiconductor Index tumbled 5% with Advanced Micro Devices losing 9.4% and Broadcom falling 5.8%.
AI cloud stocks fall
AI cloud companies CoreWeave and Nebius declined 10% and 13.7% respectively.
Market reaction
US stock indexes fell as investors assessed potential fallout from Nvidia's leadership turmoil.
Producer prices data
October producer prices rose slightly less than expected offering limited relief for Fed rate decisions.
Market indices drop
The S&P 500 fell 70.60 points to 7,519.10 while the Nasdaq Composite dropped 359.89 points to 25,006.20.
Investor concerns
Investors remain cautious about geopolitical tensions and oil prices rising for a third consecutive session.
The big picture
US stocks dropped after Nvidia's CEO resignation caused tech sector declines.
