The S&P 500 fell 0.35% to 7,592.40 as Nvidia dropped after CEO Jensen Huang resigned. Treasury yields rose, with the 10-year note back above 5%, while traders weighed the chance of a larger-than-usual Fed rate hike in December.
US stocks ended a volatile session with modest losses on Thursday as Nvidia shares fell after Jensen Huang's resignation, while US Treasury yields climbed. Nvidia said Chief Financial Officer Colette Kress will serve as interim CEO as the company looks for a permanent successor.
Nvidia finished 4.3% lower, but off the day's lows. Huang's resignation follows news that he had an affair with a Chinese businesswoman whom US authorities suspect of spying for Beijing.
Indexes close lower as chip rivals gain
The three major US indexes traded both sides of unchanged before ending lower. The S&P 500 fell 26.98 points, or 0.35%, to 7,592.40, the Dow Jones Industrial Average fell 0.36% and the Nasdaq Composite fell 0.39%.
An index of semiconductors lost 0.5%. However, Nvidia competitor Advanced Micro Devices gained 5.9%, and Broadcom rose 5.5%. Peter Tuz of Chase Investment Counsel said: "The market’s absorbed this reasonably well."
Chinese tech firms that use Nvidia chips for their AI models fell as well. Alibaba was down 7.1% in US trading.
Yields climb on rate hike bets
US Treasury yields rose after President Donald Trump said Washington does not need a deal with Iran. The 10-year yield increased 11.58 basis points to 5.105%, its highest since October 21.
The 2-year yield, which typically moves in step with Fed interest rate expectations, rose 13.96 basis points to 4.867%. Fed funds futures traders are pricing in 29 basis points of hikes in December, which points to slim odds of a 50-basis-point increase.
Oil and gas prices have risen and added to inflation concerns since the start of the US-Israeli war with Iran in February. Brent futures settled at $95.82 a barrel, up 3.3%.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
