Wall Street closed a volatile week with a mixed session on Friday as an executive crisis at chip giant Nvidia and persistent inflation pressures tested investor sentiment across the technology sector.
The week’s market turbulence was anchored by the sudden departure of Nvidia co-founder and chief executive Jensen Huang. On Thursday, November 12, Huang resigned as president, chief executive officer, and member of the board after 33 years leading the artificial intelligence chipmaker.
Huang resigned following his August 8 disclosure to employees that he had been unfaithful to his wife and amid internal scrutiny regarding ties to a former executive at Megaspeed who faces US espionage accusations.
With the company facing intense scrutiny from investors over whether its new leadership will maintain prior operational strategies—including circular financing arrangements championed by Huang—current chief financial officer Colette Kress stepped in as interim CEO while an outside firm was hired to lead the search for a permanent successor.
Nvidia shares fell 2.01% on Friday, extending a five-day slide that erased 12.75% of their value.
The turmoil surrounding Nvidia rippled across global semiconductor stocks and major hardware manufacturers. An exchange-traded fund tracking the semiconductor industry, the iShares Semiconductor ETF, dropped 3.67% on Friday.
Shares of Advanced Micro Devices fell 8.75%, while Broadcom lost 4.76%.
Applied Materials and Cisco Systems saw their shares decline 5.7% and 6% respectively, despite issuing upbeat quarterly forecasts.
The Producer Price Index for October rose at its fastest year-on-year pace since 2022, though monthly readings showed some moderation.
Federal Reserve officials pointed to persistent inflation risks, leading market participants to price in expectations for an interest rate increase at the December meeting.
“Although the Fed has a dual mandate: maximum employment and price stability, right now it is focusing exclusively on the latter, so every piece of inflation data will be meticulously analyzed. This morning’s PPI data was mixed and, while monthly figures appear to be declining, year-on-year figures are now higher than last year”, said Chris Zaccarelli, investment chief at Northlight Asset Management.
“Today’s PPI data, which shows some signs of improvement although it is still too high, is unlikely to change the Fed’s focus in December, since the CPI data was already outside its comfort zone”, Zaccarelli said.
| Market Index | Friday Closing Level | Weekly Change |
|---|---|---|
| Dow Jones Industrial Average | 52,347 | +2.07% |
| S&P 500 Index | 7,561 | +2.51% |
| Nasdaq Composite | 25,136 | +2.27% |
Who will permanently succeed Jensen Huang as Nvidia chief executive?
Earlier coverage: Nvidia Shares Drop 2% as Jensen Huang Resigns as CEO
