US stocks: Nasdaq end lower as Nvidia uncertainty weighs on tech shares
Nvidia’s shares fall 2% and recorded their sixth straight week of declines
The S&P 500 and Nasdaq closed lower on Friday, November 13, due to concerns about Nvidia's shares, which fell 2% and marked their sixth straight week of declines. This decline came after Nvidia CEO Jensen Huang's resignation following allegations of extramarital affairs, including a relationship with a businesswoman suspected of spying for China.
The uncertainty surrounding leadership at Nvidia, a key player in the AI boom, has raised doubts about the long-term viability of the artificial intelligence sector, as Nvidia's products are integral to many companies in the sector. Anthony Saglimbene, chief market strategist at Ameriprise Financial, expressed concern over the loss of confidence in the AI theme.
Despite the market volatility, the major indexes still gained weekly, with the Nasdaq and S&P 500 breaking a four-week decline streak. The Dow Jones Industrial Average rose 50.46 points, the S&P 500 lost 30.73 points, and the Nasdaq Composite fell 229.82 points. Oil-related stocks, including Neoclouds CoreWeave and Nebius, also declined.
The S&P 500 technology index underperformed as Microsoft recovered from a recent outage, while inflation data kept expectations of a Federal Reserve rate hike intact.
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