Wall Street’s major stock indexes recovered from early losses on Thursday, demonstrating resilience amid concerns over Nvidia’s leadership changes and rising oil prices. The S&P 500 initially fell nearly 1% but closed down just 0.4%. Similarly, the Dow Jones Industrial Average dropped by 189 points, and the Nasdaq Composite fell 0.4%, after recovering from a more significant early loss of 1.6%.
Nvidia’s shares were significantly impacted following the resignation of CEO and co-founder Jensen Huang, with Chief Financial Officer Colette Kress stepping in as interim CEO. This leadership change led to uncertainty about Nvidia’s future direction and its role in the AI industry, causing the company’s shares to plunge 14% before recovering some ground to finish 4.3% lower. Despite these developments, analysts maintain that Nvidia retains its status as a leading supplier of AI chips, which helped stabilize the broader technology market.
Other companies within the AI sector experienced varied performances. CoreWeave’s stock fell 6.9%, while Micron Technology saw a decline of 1.6%. Conversely, Broadcom and Advanced Micro Devices saw gains, with their shares rising 5.5% and 5.9%, respectively, as investors considered the potential for increased competition and opportunities for other chipmakers.
In a separate development, oil prices rose following President Donald Trump’s announcement ruling out a potential agreement with Iran, raising concerns about further disruptions to global energy supplies. Brent crude prices increased by 3.3% to $95.82 per barrel. The rise in energy prices also contributed to inflation concerns, with the 10-year US Treasury yield climbing to 5.12%.
Rising borrowing costs continued to affect the housing market, as existing-home sales in October reached their slowest pace in over 16 years. Meanwhile, unemployment benefit applications saw a slight increase, though overall claims remained low.
By the end of trading, the S&P 500 was at 7,592.40, the Dow Jones Industrial Average at 52,297.09, and the Nasdaq Composite at 25,366.09. International markets showed mixed results, with Hong Kong’s Hang Seng Index declining 1.3%.