The S&P 500 index fell by approximately 0.8% in Thursday’s trading, while the Nasdaq Composite dropped 1.5%. In contrast, the Dow Jones Industrial Average managed a gain of about 108 points, or 0.2%, suggesting that market pressure is more concentrated within the technology and artificial intelligence sectors.
The primary source of pressure was Nvidia, which plunged more than 11% following the announcement that CEO Jensen Huang is stepping down, with CFO Colette Kress appointed as interim CEO. This decision has fueled investor concerns regarding leadership continuity at the company, a key player in the global AI industry.
Amid the pressure on Nvidia, investors shifted their focus to other semiconductor stocks; AMD rose by about 1%, while Broadcom gained 4%. However, the downward pressure extended to other AI-related stocks, including Oracle, which fell 3%, and Nebius, which plummeted 20% after issuing a disappointing performance outlook.
Market sentiment was further dampened by fading hopes for a resolution to the conflict in the Middle East, following President Donald Trump’s statement that the U.S. does not need a deal with Iran. Oil prices remained relatively stable, with WTI trading at around $86 per barrel and Brent hovering near $93 per barrel.
Beyond geopolitical factors, investors continue to grapple with persistent inflation, the prospect of further interest rate hikes by the Federal Reserve, and elevated long-term interest rates. Political uncertainty in Washington, combined with the potential for stricter regulations on AI and data centers, has kept market sentiment cautious.