Wall Street showed resilience on Thursday after a tumultuous day marked by concerns over Nvidia’s leadership change and rising oil prices. Despite early losses, major U.S. stock indexes managed to regain much of their ground, suggesting that investor confidence in the artificial intelligence sector remains intact.
The S&P 500, which had initially dipped nearly 1%, closed with a 0.4% decline. Similarly, the Dow Jones Industrial Average fell by 189 points, and the Nasdaq Composite ended the day down 0.4%, having recovered from an earlier 1.6% drop.
Nvidia’s shares were notably impacted, dropping sharply by 14% at one point following the resignation of CEO and co-founder Jensen Huang. The company’s board named Chief Financial Officer Colette Kress as interim CEO, a move that sparked concerns about Nvidia’s future direction and its role in the AI industry. By the end of trading, Nvidia shares had recovered some losses, closing 4.3% lower. Analysts, however, remain optimistic about Nvidia’s position as a leading supplier of AI chips, which helped stabilize the broader tech market.
The day’s trading saw mixed performances among other AI-related stocks. CoreWeave’s shares fell 6.9%, while Micron Technology saw a 1.6% decline. In contrast, Broadcom and Advanced Micro Devices saw gains of 5.5% and 5.9%, respectively, as investors evaluated the potential for increased competition among chipmakers.
In the energy sector, oil prices rose following President Donald Trump’s announcement ruling out a potential agreement with Iran, raising fears of further disruptions to global energy supplies. Brent crude saw a 3.3% increase, reaching $95.82 per barrel. This rise in energy prices has heightened inflation concerns, with the 10-year U.S. Treasury yield climbing to 5.12%.
Higher borrowing costs continued to strain the housing market, as existing-home sales in October fell to their slowest pace in over 16 years. Additionally, unemployment benefit applications edged up slightly, though overall claims remained low.
At the close 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 presented mixed results, with Hong Kong’s Hang Seng Index experiencing a 1.3% decline.