Wall Street slides as Nvidia uncertainty drags tech shares lower
SPY•US stocks fell, with the S&P 500 down 0.51% and Nasdaq down 0.93%, as Nvidia’s leadership uncertainty weighed on technology shares. October producer prices rose 6.5% year over year, while markets priced in a December Fed rate hike.
1. Tech shares lead losses
Nvidia fell 2.2% and was poised for a sixth consecutive weekly decline after CEO Jensen Huang’s resignation. The uncertainty about leadership at the chipmaker raised concerns about the durability of the AI trade. The Philadelphia Semiconductor Index fell 3.7%, while the S&P 500 technology sector lost 1.6%; Microsoft edged up 0.4% as a global outage began to ease.
2. Indexes and inflation
The Dow slipped 0.01% to 52,291.73, the S&P 500 fell 0.51% to 7,553.53 and the Nasdaq dropped 0.93% to 25,129.60. Despite the declines, the Nasdaq and S&P 500 were on track for weekly gains. October producer prices rose 6.5% from a year earlier, the largest annual increase since November 2022, and markets priced in a December rate hike of at least 25 basis points.
