US stocks steady after sharp swings in Nvidia, oil prices: Stock Market Live Updates
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Business News›Markets›US Stocks›Wall St Guide›Nasdaq drop over 350 pts at open as Nvidia turbulence rattles AI stocks: Stock Market Live Updates
Dow Jones | Nasdaq | Stock Market Live: Wall Street's main indexes opened lower on Thursday after Nvidia said CEO Jensen Huang was stepping down, leaving the AI industry without its biggest champion.
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.
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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
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%.