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Wall Street edges up, Nvidia drops after CEO resigns
US stocks edged higher after recovering early losses, while Nvidia shares fell following chief executive Jensen Huang’s resignation. The departure has raised questions about the chipmaker’s direction and the durability of the AI boom, although gains in rivals helped offset some of Nvidia’s decline.
Nvidia was down about 4 per cent, with CFO Colette Kress named interim CEO as the company searches for a permanent successor. AMD rose 7 per cent and Broadcom gained 5.4 per cent, while the Dow, S&P 500 and Nasdaq advanced between 0.29 and 0.40 per cent. The 10-year US Treasury yield reached 5.066 per cent, and the dollar hit a 19-month high as investors anticipated a possible Federal Reserve rate rise in December.
In short
- Nvidia fell about 4 per cent after Jensen Huang resigned.
- Colette Kress will serve as interim CEO.
- US stocks rose slightly as rivals gained.
Explained simply
Nvidia designs graphics processors, or chips, used in computers and data centres. Its products are widely used to train and run artificial intelligence systems, making the company a major part of the recent growth in AI investment.
Jensen Huang led Nvidia as it expanded into this market, while Colette Kress has been its chief financial officer. Investors watch changes in leadership at large technology firms because they can affect expectations for a company’s strategy and future earnings.
Nvidia is one of the largest companies in major US share indexes, so movements in its share price can influence the broader market. Other chipmakers, including AMD and Broadcom, compete in related areas, and their performance can also shape how investors view demand for AI computing.