US close: Nasdaq drops as Nvidia turmoil, rate fears hit sentiment

13th Nov 2026 22:34

(Sharecast News) - US stock markets ended mostly lower on Friday, with the tech-heavy Nasdaq falling for the second day as uncertainty surrounding Nvidia's leadership continues to rattle investors' nerves along with the prospect of further interest rate hikes.

The Dow Jones Industrial Average edged up 0.1%, while the S&P 500 fell 0.4% and the Nasdaq dropped 0.9%.

Despite the losses, all three benchmarks finished the week higher - rising 2.1%, 2.5% and 2.3% respectively - with the latter two indices snapping a four-week losing streak.

The spotlight remained on the AI chip sector on Friday after world leader Nvidia confirmed the previous day that co-founder Jensen Huang had stepped down with immediate effect.

In a statement, the $4trn semiconductor manufacturer said Huang had quit as president, CEO and a member of the board, though did not attribute the exit to this week's revelation that he had two separate extramarital affairs, including one with a suspected Chinese spy.

The unplanned departure raises questions about the future direction of one of the world's largest suppliers of AI chips, renewing concerns about the sustainability of current investment levels across the semiconductor and data centre industries.

Nvidia shares declined another 2%, taking their weekly losses to around 13%, while rivals Advanced Micro Devices and Broadcom also slumped.

Others in the AI and chip sectors also fell, including Micron Technology, Nebius and Marvell Technology.

Further dampening sentiment in the sector was Microchip Technology, which saw shares drop after underwhelming investors with guidance for the current quarter.

In contrast, vaccine manufacturer Moderna surged after beating profit forecasts with its third-quarter results, helping it lift its full-year revenue outlook substantially.

Friday's other focus was October's producer price index, which showed the annual rate of US factory gate inflation accelerating to 6.5% in October from 6.3% previously, the highest since November 2022. However, producer prices rose just 0.3% over the month, cooling sharply from September's 1.4% jump and coming in below consensus estimates of 0.4%.

"Hotter producer prices, driven partly by elevated energy costs, reinforce expectations that the Federal Reserve may need to deliver further rate hikes, adding another headwind for high-valued technology stocks," said Axel Rudolph, chief technical analyst at IG.