US close: Stocks fall as Nvidia CEO scandal rattles tech sector

12th Nov 2026 22:04

(Sharecast News) - US stocks finished lower on Thursday as the resignation of Nvidia's influential chief executive Jensen Huang rattled nerves across the tech sector, though downside was limited by strong performances of rival chipmakers.

The Dow, S&P 500 and Nasdaq all finished 0.4% lower, with Nvidia - Wall Street's third-largest constituent - settling 4.3% lower, having lost as much as 14% earlier on.

In a statement, the $4trn semiconductor manufacturer said Huang had quit as president, CEO and a member of the board with immediate effect following this week's revelation that he had two separate extramarital affairs, including one with a suspected Chinese spy.

Huang's departure is thought to have far-reaching consequences for both Nvidia and the wider AI sector. The company is leading the AI boom, with its chips integral to the work of companies such as OpenAI and Anthropic, and much of its success has widely been attributed to Huang.

He was also extremely influential, with the ear of both Washington and Beijing, and has a close relationship with Donald Trump, who earlier this week called him a "high-quality person".

Both the Democrats and Republicans are calling for an investigation into Huang in light of the revelations, while the FBI is also understood to be probing the affair.

As sentiment surrounding Nvidia dropped, AI-related stocks struggled, including CoreWeave, Super Micro Computer, Intel and Marvell Technology. However, Nvidia rivals AMD and Broadcom both rose strongly.

Elsewhere, Treasury yields rose as bond markets reopened following the Veterans Day holiday, with traders awaiting fresh PPI inflation data on Friday, while home sales dropped to a 16-year low. The US 10-year US Treasury yield surged 14.6 basis points to a four-week high of 5.134%.

US existing home sales fell 5.5% in October to their lowest since 2010, according to the National Association of Realtors, as higher borrowing costs and affordability pressures continued to weigh on housing market activity. Sales of previously owned homes were 8.8% lower than a year earlier.

Meanwhile, initial jobless claims rose by 9,000 to 200,000 in the week ended 7 November, according to the Labor Department. The prior week was upwardly revised by 2,000 to 189,000, while the four‑week moving average was 195,250, unchanged from the prior week's upward revision.