By US stocks opened lower on Thursday as Nvidia shares slumped following the resignation of CEO Jensen Huang, adding to pressure on technology stocks and the broader market.
The Nasdaq Composite dropped 0.58%, while the S&P 500 fell 0.33%. The Dow Jones Industrial Average gained 13 points.
Nvidia shares fell more than 8% in trading after the company announced that Huang had stepped down and named Chief Financial Officer Colette Kress as interim CEO.
The leadership change followed reports about Huang’s alleged relationships, including one involving a businesswoman accused of being a Chinese spy.
The development rattled investors in the artificial intelligence sector, where Huang has been one of the industry’s most prominent figures.
If the losses hold, Nvidia could lose nearly $400 billion in market value, potentially putting its position as the world’s second-most valuable publicly listed company at risk.
Nvidia selloff weighs on AI stocks
The decline in Nvidia shares came after a period of weakness in the stock, which has already lost ground from its recent valuation highs.
The company was the world’s most valuable publicly traded business as recently as last month before being overtaken by Apple.
Microsoft could now benefit if Nvidia’s market value falls further, potentially moving ahead of the chipmaker in the global market capitalisation rankings.
The pressure was not limited to Nvidia.
Oracle shares fell 2% in trading, while Nebius dropped more than 16% despite reporting third-quarter revenue above analysts’ expectations.
Investors appeared more concerned about the company’s outlook, which disappointed the market.
However, some semiconductor stocks moved higher as investors shifted towards other companies in the sector.
Advanced Micro Devices and Broadcom gained more than 3% and 5% respectively following Huang’s departure.
Oil rises as Trump comments cloud Iran outlook
Oil prices also moved higher as uncertainty surrounding negotiations between the US and Iran returned to the forefront.
Brent crude rose 0.26% to $93, while the US WTI crude fell 0.40%.
The gains followed President Donald Trump’s comments that the US no longer needed an agreement with Iran.
The remarks raised questions about the prospects for a diplomatic resolution and added to concerns over potential disruptions to energy supplies.
Energy stocks benefited from the move, with Chevron and ExxonMobil trading roughly 1% higher. Healthcare stocks also showed relative strength, with Eli Lilly gaining 0.47%.
Jobless claims and rate concerns add to market risks
Investors also assessed fresh US labour market data.
Initial jobless claims rose by 9,000 to a seasonally adjusted 200,000 in the week ended November 7, according to the Labor Department.
The figure was above the Dow Jones consensus estimate of 195,000 and marked a modest increase after claims had remained near their lowest levels since the late 1960s.
Continuing claims, which are reported with a one-week delay, fell by 20,000 to just below 1.7 million.
The data added to a broader set of economic considerations facing investors, including persistent inflation, the prospect of further Federal Reserve rate increases and higher long-term interest rates.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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