Jensen Huang's resignation as CEO of Nvidia unleashed a wave of selling that shook Wall Street's tech stocks this Friday, with the Philadelphia semiconductor index falling 5% and the Nasdaq retreating more than 1.5% during the session.
Nvidia shares were down 3.3% and headed toward their longest streak of weekly losses since October 2012, Reuters reported. Huang's departure was preceded by scrutiny of his relationship with a businesswoman whom U.S. authorities suspect was performing espionage for Chinese intelligence services.
The blow strongly extended throughout the sector's chain. Advanced Micro Devices (AMD) lost 9.4% and Broadcom fell 5.8%, while next-generation cloud computing platforms—the so-called "neoclouds"—suffered even more pronounced declines: CoreWeave retreated 10% and Nebius, 13.7%. Companies linked to data centers such as IREN, Applied Digital, and Core Scientific also registered sharp drops.
The "Magnificent Seven" are divided: Apple and Meta hold steady while Microsoft stumbles
Within the group of the so-called "Magnificent Seven," the outlook was mixed. Apple and Meta advanced more than 1% each and positioned themselves as the segment's only refugess.
On the opposite side, Microsoft lost 0.6% after suffering an interruption of more than 12 hours in its Ou...
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Jensen Huang's Departure Plummets Nvidia and Drags Tech Sector on Wall Street (EFE/SARAH YENESEL)
Jensen Huang's resignation as CEO of Nvidia triggered a wave of selling that shook technology stocks on Wall Street this Friday, with the Philadelphia semiconductor index falling 5% and the Nasdaq retreating more than 1.5% during the trading day. Nvidia shares were down 3.3%, heading toward its longest weekly losing streak since October 2012, according to Reuters. Huang's departure was preceded by scrutiny over his relationship with a businesswoman whom US authorities suspect was engaged in espionage for Chinese intelligence services. The blow spread strongly across the entire sector chain. Advanced Micro Devices (AMD) lost 9.4%, and Broadcom fell 5.8%, while next-generation cloud computing platforms—the so-called "neoclouds"—suffered even more pronounced declines: CoreWeave retreated 10% and Nebius, 13.7%. Companies linked to data centers, such as IREN, Applied Digital, and Core Scientific, also registered sharp drops. Jensen Huang's resignation as CEO of Nvidia triggered a wave of selling that shook technology stocks on Wall Street this Friday (REUTERS/Manami Yamad).
Within the group of so-called "Magnificent Seven," the outlook was mixed. Apple and Meta advanced by more than 1% each, positioning themselves as the only refugess in the segment. On the opposite side, Microsoft lost 0.6% after experiencing an outage of more than 12 hours in its Outlook and Teams services. The turmoil surrounding Nvidia raised broader alarms about the future of artificial intelligence as an industry. The chip manufacturer occupies a central place in the sector's ecosystem and maintains financial ties with multiple related companies, which amplified the cascade effect of the news. The Federal Reserve (REUTERS/Ken Cedeno)
On the macroeconomic front, October producer price data came in slightly below market estimates, a signal that could moderately moderate the pressure on the Federal Reserve (Fed) to aggressively tighten monetary policy. However, traders have already priced in a rate hike for December. In recent days, Fed officials introduced the possibility of a 50 basis point increase into the debate, instead of the expected 25. According to the CME Group's FedWatch tool, the probability of this more aggressive scenario stands at around 7%. At 4:45 PM GMT, the Dow Jones Industrial Average fell 170.66 points (0.33%), to 52,126.43 units; the S&P 500 lost 75.92 points (1.00%), to 7,516.48 units; and the Nasdaq Composite gave up 421.74 points, equivalent to 1.66%, settling at 24,944.36 units.