S&P 500, Nasdaq fall as Nvidia CEO’s exit rattles AI stocks

On November 12, the S&P 500 and Nasdaq Composite indexes declined as the departure of Nvidia CEO Jensen Huang unsettled the AI sector and rising oil prices prompted investors to move to the sidelines. Shares of Nvidia plummeted 7.6% following reports of his involvement in a second extramarital affair, while the company named COO Colette Kress as interim CEO.

Nvidia's chief financial officer, Kathleen Brooks, described the company's leadership as "rudderless" in the wake of Huang's resignation. AI stocks faced additional uncertainty, with Nebius' 2026 revenue forecast coming in at the low end of its previous expectation, causing its shares to drop 17%. CoreWeave and CoreWeave's peers in the data center sector also experienced declines, including CoreWeave (-17%), Intel (-2.8%), Marvell Technology (-4.2%), Micron (-4.2%), IREN (-3%), Applied Digital (-5%), and Core Scientific (-5%).

Despite these losses, AI stocks managed to recover some ground after CoreWeave reported strong results on November 11. The other Magnificent Seven firms, including Amazon, Alphabet, Microsoft, and Apple, posted slight gains, while Advanced Micro Devices and Broadcom rose 4.3% and 5.5%, respectively. The Dow Jones Industrial Average edged up 35.53 points (0.07%) to 52,522.02, while the S&P 500 slipped 22.06 points (0.29%) to 7,597.32, and the Nasdaq Composite fell 141.55 points (0.56%) to 25,322.31.

The tech sector within the S&P 500 declined 1.3%, despite gains in other areas. Six of the 11 major sectors were in positive territory. Traders are also watching the Producer Price Index release on November 13, which could impact inflation expectations following higher-than-expected consumer price increases in October. Brent crude futures rose 0.8% on November 12, following President Trump's statement that the US does not require a deal with Iran.

Energy prices have remained near $100 per barrel, contributing to inflation. Michael Saylor's Strategy fell 6.6% after MSCI announced it would remove the stock from its global indexes.