S&P 500, Nasdaq fall as Nvidia CEO's exit rattles AI stocks
NVDA•The S&P 500 fell 0.29% and the Nasdaq Composite lost 0.56% after Nvidia shares dropped 7.6% following CEO Jensen Huang's resignation. AI-related stocks also declined, while traders awaited Friday's producer price data and priced in a December Federal Reserve rate hike.
1. AI shares slide
Nvidia shares fell 7.6% after CEO Jensen Huang resigned, unnerving investors in AI-related stocks. Chief financial officer Colette Kress will take over as interim CEO. Nebius fell 17% after forecasting 2026 revenue at the low end of its previous range, while CoreWeave dropped about 7%.
2. Indexes and stocks
At 9:45 a.m. ET, the Dow rose 0.07%, while the S&P 500 fell 0.29% and the Nasdaq Composite declined 0.56%. The Philadelphia Semiconductor index lost 1.3%; Intel, Marvell Technology and Micron fell between 2.8% and 4.2%. Advanced Micro Devices and Broadcom rose 4.3% and 5.5%, respectively.
3. Inflation and oil watched
Investors awaited Friday's Producer Price Index after consumer prices rose more than expected the previous month. Brent crude futures gained 0.8%. Traders saw a December Federal Reserve rate hike as certain, with about a 13% chance of a 50-basis-point increase. Separately, Strategy fell 6.6% after MSCI said it would remove the stock from its global indexes.
