US stocks close lower as Nvidia drop outweighs energy gains

The S&P 500 closed lower on Thursday as Nvidia shares fell after CEO Jensen Huang's exit. Despite Nvidia's 4.3% drop, the chip company's shares did not reach their lowest point of the day. Retail investors bought Nvidia shares worth about US$111 million in the first half-hour of trading, the highest opening bid on record for the stock.

The S&P 500 energy index rose 1.5%, its fourth consecutive session of gains, as crude prices climbed following President Trump's tweet about no Iran deal. AI-linked stocks, including Nebius, fell significantly, with Nebius tumbling 16.8%, its largest daily percentage drop since July 1. Nvidia competitors such as Broadcom, Advanced Micro Devices, and Alphabet gained, contributing to the S&P 500's performance.

Equities have been volatile recently due to concerns over potential AI regulation and Nvidia's leadership. The Dow Jones Industrial Average slipped 0.36%, the S&P 500 dropped 0.35%, and the Nasdaq Composite fell 0.39%. Investors are awaiting inflation data, with the Producer Price Index release pending on Friday. Fed officials have hinted at a more aggressive rate hike path amid worsening price pressures.