US stocks: S&P 500, Nasdaq close lower as Nvidia woes and rate-hike bets pressure US market
The S&P 500 and Nasdaq experienced declines on Friday, primarily driven by concerns surrounding Nvidia and CEO Jensen Huang's resignation. The tech sector faced increased pressure, particularly the Philadelphia Semiconductor Index, which fell significantly. Although inflation data suggested a slightly lower increase, expectations for further Federal Reserve rate hikes remained unchanged. Major…
The S&P 500 and Nasdaq experienced declines on Friday, as concerns surrounding Nvidia impacted technology stocks. The S&P 500 fell 0.42% to 7,560.87 points, while the Nasdaq Composite lost 0.91% to 25,135.96. In contrast, the Dow Jones Industrial Average edged up by 0.09% to 52,343.23. Nvidia's stock fell for the sixth consecutive week, marking the longest streak since October 2012, following CEO Jensen Huang's resignation amid allegations of extramarital affairs.
Nvidia's board has considered Arm Holdings CEO Rene Haas as a potential successor. The leadership uncertainty surrounding Nvidia has raised questions about the sustainability of the AI trade, given Nvidia's pivotal role in the industry's growth and its financial connections to multiple companies in the sector. AI stocks have been instrumental in driving the equity market's bullish trend.
Fed officials indicated further rate hikes were likely as inflation remained elevated. Despite the volatility, all three major indexes were predicted to end the week with gains, as the S&P 500 and Nasdaq were set to conclude their four-week losing streaks.
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- 10 milestones in Nvidia's growth, from the NV1 to $3 trillion in market value qz.com
- Jensen Huang was a ‘China salesman’ for Nvidia. His exit is weighing on Chinese tech stocks. marketwatch.com
- China tech stocks emerge as one of BofA's best risk-on plays seekingalpha.com
