Wall Street demonstrated resilience on Thursday as major U.S. stock indexes rebounded from early losses, reflecting sustained confidence in the artificial intelligence sector despite turmoil in Nvidia’s leadership and climbing oil prices. The S&P 500, which initially saw a nearly 1% drop, closed down only 0.4%. The Dow Jones Industrial Average fell by 189 points, while the Nasdaq Composite recovered from a 1.6% loss to finish down 0.4%.
Investor concerns were heightened following the unexpected resignation of Nvidia’s CEO and co-founder Jensen Huang. The company’s board has appointed Chief Financial Officer Colette Kress as interim CEO, prompting questions about Nvidia’s future path and its impact on the rapidly expanding AI industry. Nvidia’s shares initially plummeted by 14% before recovering some losses to close 4.3% lower. Despite these challenges, analysts maintain a positive outlook on Nvidia’s role as a key AI chip supplier, bolstering the broader tech market’s partial recovery.
Other companies in the AI sector experienced varied outcomes. CoreWeave’s shares declined by 6.9%, and Micron Technology saw a 1.6% drop. On the other hand, Broadcom and Advanced Micro Devices posted gains of 5.5% and 5.9%, respectively, as investors weighed the potential for increased competition and opportunities for other chipmakers.
In the energy sector, oil prices surged following President Donald Trump’s announcement dismissing the possibility of a deal with Iran, sparking fears of further disruptions to global energy supplies. Brent crude rose by 3.3% to reach $95.82 per barrel. The increase in energy costs also stoked inflation concerns, with the 10-year U.S. Treasury yield climbing to 5.12%.
The rising borrowing costs have added pressure on the housing market, leading to October’s existing-home sales reaching their slowest pace in over 16 years. Additionally, there was a slight uptick in unemployment benefit applications, although overall claims remained relatively low.
By the end of the trading day, the S&P 500 stood at 7,592.40, the Dow Jones Industrial Average at 52,297.09, and the Nasdaq Composite at 25,366.09. Globally, markets showed mixed results, with Hong Kong’s Hang Seng Index falling by 1.3%.