Wall Street navigated a turbulent session on Thursday, with major U.S. stock indexes regaining ground after initial losses driven by investor concerns over Nvidia’s leadership changes and rising oil prices. The S&P 500 pared its earlier decline, closing down 0.4%, while the Dow Jones Industrial Average fell by 189 points. The Nasdaq Composite also managed a recovery, finishing 0.4% lower after initially dropping 1.6%.
Nvidia shares were a focal point of the day’s volatility. The company faced heightened scrutiny following the resignation of its CEO and co-founder, Jensen Huang. In response, the board appointed Chief Financial Officer Colette Kress as interim CEO. This leadership shift stirred uncertainty about Nvidia’s future trajectory, particularly its role in the burgeoning artificial intelligence (AI) industry. Nvidia’s stock plunged 14% at one point but recovered to close 4.3% down. Despite the upheaval, analysts maintain a positive outlook on Nvidia, acknowledging its status as a leading AI chip supplier, which helped stabilize the broader tech market.
The day’s trading also saw mixed performances from other AI-related stocks. CoreWeave experienced a 6.9% drop, and Micron Technology decreased by 1.6%. Conversely, Broadcom and Advanced Micro Devices posted gains of 5.5% and 5.9%, respectively, as investors weighed the implications of Nvidia’s leadership change for competitive dynamics among chipmakers.
In addition to stock market fluctuations, oil prices surged following statements from President Donald Trump dismissing the possibility of a deal with Iran. This development heightened concerns about potential disruptions in global energy supplies, driving Brent crude prices up by 3.3% to $95.82 per barrel. The increase in energy prices also fueled inflation worries, as evidenced by the 10-year U.S. Treasury yield rising to 5.12%.
Higher borrowing costs continued to impact the housing market, with October’s existing-home sales reaching their lowest pace in over 16 years. Furthermore, while unemployment benefit applications saw a slight uptick, overall claims remained low, reflecting a generally stable labor market.
By the end of the trading day, 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. On the international front, market performance was mixed, as demonstrated by a 1.3% decline in Hong Kong’s Hang Seng Index.
