Nasdaq drop over 350 pts at open as Nvidia turbulence rattles AI stocks: Stock Market Live Updates

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Dow Jones | Nasdaq | Stock Market Live: Wall Street’s main indexes trade lower on Thursday after Nvidia says CEO Jensen Huang is stepping down, leaving the AI industry without its biggest champion.

The Dow Jones Industrial Average fell 58.5 points, or 0.11%, to 52,427.94. The S&P 500 fell 68.5 points, or 0.90%, to 7,550.84​, while the Nasdaq Composite dropped 374.1 points, or 1.47%, to 25,092.109.

Nvidia leadership shake-up rattles markets
Nvidia shares plunged 10% after CEO Jensen Huang resigned and Chief Financial Officer Colette Kress was named interim CEO. The stock had already fallen 27% from last month’s record high through Wednesday amid concerns about Huang’s future and how the chipmaker would navigate a leadership transition. Wall Street’s immediate reaction on Thursday was to punish stocks across the AI industry, though some of Nvidia’s rivals held up better in hopes of a competitive advantage.

Nvidia leadership shake-up rattles markets

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US President Donald Trump said on Thursday that former Apple Inc Chief Executive Tim Cook should replace Jensen Huang as the CEO of Nvidia.


"NOW THAT Nvidia CEO JENSEN HUANG, who has done a fantastic job, has resigned, there is only one man to take his place - TIM COOK of Apple," Trump said on social media. "A Legend replaces a Legend!" he added.

Nvidia (NVDA) shares pared losses to about 5% after plunging 13% at the open. The selloff followed the AI chipmaker’s announcement that CEO Jensen Huang had resigned with immediate effect.

The company’s market value remained below $4 trillion, with the stock down roughly 30% over the past month.

OpenAI has raised $15 billion in fresh funding at a $1.25 trillion valuation, CNBC reported.

A coalition of online safety and consumer advocacy groups on Thursday sued five of the world’s leading artificial intelligence companies to halt further development, alleging the tech giants can’t prevent their own creations from causing “catastrophic” harm.


The lawsuit in San Francisco Superior Court follows a midterm election that could bring a moment of reckoning for the fast-moving AI industry, as Democrats who won back control of Congress stress the need to regulate the technology.

The number of Americans filing new claims for unemployment benefits increased last week, but remained at a level consistent with a stable or even strengthening labor market, allowing the Federal Reserve to focus on fighting inflation.

Economists expect layoffs to remain low through the end of the year, though seasonal volatility related to the holiday season could cause some spikes in the claims data. The government last week reported a surge in nonfarm payrolls in October and a decline in the unemployment rate to 4.1% from 4.2% in September.

US retailer Costco sees room to expand its technology presence in India beyond Hyderabad as it accelerates international growth, with its first global capability centre playing a key role in artificial intelligence and cybersecurity, a top executive said.

Shares of AI giant Nvidia tumbled 13% on Thursday after CEO Jensen Huang announced his resignation from the company, stepping down as president, chief executive officer and a member of its board with immediate effect.

Read More: Nvidia shares plunge after Huang resigns

The Dow Jones Industrial Average fell 58.5 points, or 0.11%, at the open to 52,427.94. The S&P 500 fell 68.5 points, or 0.90%, at the open to 7,550.84​, while the Nasdaq Composite dropped 374.1 points, or 1.47%, to 25,092.109.

Keurig Dr Pepper said on Thursday it plans to raise $2 billion through an underwritten public stock offering, as the beverage maker seeks to reduce debt ahead of its planned breakup into two publicly traded companies early next year.

Alice Huang, the alleged Chinese spy at the heart of a scandal at chipmaker Nvidia , left Singapore in February and was barred from re-entering following an investigation into possible offences, Singapore's home affairs ministry said on Thursday.


Nvidia said on Thursday that CEO Jensen Huang is stepping down, as pressure has mounted on him in recent days after reports said the 63-year-old, who is married, had an affair with Alice Huang, who US authorities suspect of spying for Beijing.

Nvidia CEO Jensen Huang has resigned, and Collette Kress has been appointed interim chief executive.

US Trade Representative Jamieson Greer told CNBC on Thursday that the United States is still concerned about Nvidia, as the world's dominant supplier of AI chips grapples with fallout from reports of two extramarital affairs involving its longtime leader.


"Obviously we remain concerned," Greer said in an interview.

Michael Saylor’s Strategy fell 4.3% in premarket trading after MSCI said it would remove the bitcoin-focused company’s shares from its global indexes.

Semiconductor and AI-linked stocks fell in premarket trading, threatening to erase the previous session’s gains as volatility continued to grip the AI trade. Intel, Marvell Technology and Micron lost between 1.9% and 2.8%, while CoreWeave dropped about 6%. Nebius was flat ahead of its quarterly results, Tesla slipped 0.3% and Amazon gained 0.3%.

Investors are looking to Friday’s Producer Price Index for fresh clues on inflation after consumer prices rose more than expected last month. Lower oil prices in November have eased some price-pressure concerns, though Middle East tensions remain a risk. Traders fully expect a Federal Reserve rate hike in December and see a roughly 10% chance of a larger 50-basis-point increase, according to the CME FedWatch tool.

Nvidia shares fell 6% in premarket trading following reports of two extramarital affairs involving longtime CEO Jensen Huang, prompting investors to weigh the potential fallout from any leadership change at a company central to the AI boom. Terri-Leigh Bennett, chief operating officer at CMS Prime, said the controversy poses an unusually difficult challenge for investors who have concentrated capital in companies viewed as indispensable to the AI economy.

Nasdaq 100 futures led Wall Street lower on Thursday after Nvidia shares plunged on reports that its board was considering removing CEO Jensen Huang, rattling sentiment across AI-linked stocks. At 5:32 a.m. ET, Dow E-minis rose 61 points, or 0.12%, while S&P 500 E-minis fell 24.25 points, or 0.31%, and Nasdaq 100 E-minis dropped 181 points, or 0.64%.