(Sharecast News) - Major indices were in the red early on Thursday, pressured by a sharp sell-off in Nvidia after chief executive Jensen Huang resigned from the company he founded after he had an affair with a suspected Chinese spy.
As of 1515 GMT, the Dow Jones Industrial Average was down 0.01% at 52,483.34, while the S&P 500 shed 0.39% to 7,589.69 and the Nasdaq Composite came out of the gate 0.72% weaker at 25,282.33.
The Dow opened just 3.15 points lower on Thursday, doing little to impact gains recorded in the previous session.
Nvidia was in focus at the open, with the stock losing 7.74% in early trade after the $4.2trn semiconductor manufacturer said Huang had quit as president, chief executive and a member of the board with immediate effect. It also confirmed the appointment of the company's first-ever chair, former Synopsys chief executive Harvey Jones.
Huang, who led the artificial intelligence giant for more than three decades, admitted over the weekend to having an affair. Although neither he nor Nvidia have named the woman, she has been widely reported to be Alice Huang, an executive at Singapore-based Megaspeed who the US authorities believe to be a Chinese spy. He has been replaced on an interim basis by chief financial officer Colette Kress, who has been with Nvidia since 2013.
Nvidia also weighed on broader tech sentiment, with investors increasingly focused on the implications for the artificial intelligence sector, where the company has been a key beneficiary of surging data centre and AI-related spending.
Elsewhere, Treasury yields were mixed as bond markets reopened following the Veterans Day holiday, with traders awaiting fresh inflation and housing market data for further clues on the health of the US economy and the Federal Reserve's policy outlook. The yield on the benchmark 10-year Treasury note was up more than eight basis points at 5.073%, while the rate-sensitive two-year yield was up almost ten basis points at 4.845%.
On the macro front, Americans lined up for unemployment benefits at an accelerated pace in the week ended 7 November, according to the Labor Department. Initial claims rose by 9,000 to 200,000, after 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. Continuing claims fell by 20,000, with the number of Americans receiving unemployment benefits dropping to 1.697m in the week ended 31 October, while the previous reading was revised down by 1,000 to 1.717m. The seasonally adjusted insured unemployment rate held steady at 1.1%, unchanged from the previous week's unrevised rate.
On another note, US existing home sales fell sharply in October, 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 declined 5.5% month-on-month and were 8.8% lower than a year earlier. Regionally, sales were weaker across the Midwest, South and West on a monthly basis, while activity was unchanged in the Northeast. Compared with the same period a year ago, sales fell in all four regions. Unsold inventory increased 1.3% month-on-month to 1.59m units, equal to a 5.1-month supply, while the median existing-home sales price increased 0.4% year-on-year to $416,700.
In terms of earnings, Cisco Systems and Applied Materials were both slated to report earnings after the close.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Amgen Inc. (AMGN) $469.90 2.09%
Apple Inc. (AAPL) $358.83 1.83%
McDonald's Corp. (MCD) $278.23 1.25%
Travelers Company Inc. (TRV) $403.37 1.11%
Procter & Gamble Co. (PG) $168.93 0.88%
Chevron Corp. (CVX) $214.51 0.68%
Johnson & Johnson (JNJ) $282.00 0.57%
Home Depot Inc. (HD) $352.20 0.56%
Dow Chemical Co. (DOW) $32.71 0.52%
JP Morgan Chase & Co. (JPM) $344.87 0.50%
Dow Jones - Fallers
Intel Corp. (INTC) $60.49 -1.24%
Microsoft Corp. (MSFT) $525.66 -1.20%
Salesforce.Com Inc. (CRM) $215.08 -1.17%
Caterpillar Inc. (CAT) $595.47 -1.08%
International Business Machines Corporation (CDI) (IBM) $245.67 -0.89%
Goldman Sachs Group Inc. (GS) $919.76 -0.41%
3M Co. (MMM) $188.46 -0.18%
Unitedhealth Group Inc. (UNH) $402.23 -0.17%
American Express Co. (AXP) $322.60 -0.16%
Boeing Co. (BA) $173.88 -0.10%
S&P 500 - Risers
Skyworks Solutions Inc. (SWKS) $89.64 7.98%
TripAdvisor Inc. (TRIP) $7.61 7.79%
Advanced Micro Devices Inc. (AMD) $566.83 7.34%
Regeneron Pharmaceuticals Inc. (REGN) $953.84 6.35%
Expedia Group Inc. (EXPE) $264.97 5.02%
CH Robinson Worldwide Inc (CHRW) $133.21 4.69%
Verisk Analytics Inc. (VRSK) $208.10 3.85%
Hilton Inc (HLT) $376.53 3.49%
Booking Holdings Inc. (BKNG) $162.48 2.93%
O'Reilly Automotive Inc. (ORLY) $91.20 2.82%
S&P 500 - Fallers
FMC Corp. (FMC) $4.79 -13.47%
Coterra Energy Inc. (CTRA) $32.56 -8.62%
Nvidia Corp. (NVDA) $162.70 -7.58%
Illumina Inc. (ILMN) $208.47 -6.40%
Mosaic Company (MOS) $21.57 -5.09%
Equity Residential (EQR) $63.66 -3.50%
Newmont Corporation (NEM) $114.70 -3.18%
Wynn Resorts Ltd. (WYNN) $83.65 -3.11%
Meta Platforms Inc. (META) $626.43 -2.96%
Cadence Design Systems Inc. (CDNS) $328.27 -2.95%
Nasdaq 100 - Risers
Skyworks Solutions Inc. (SWKS) $89.64 7.98%
Regeneron Pharmaceuticals Inc. (REGN) $953.84 6.35%
Expedia Group Inc. (EXPE) $264.97 5.02%
Verisk Analytics Inc. (VRSK) $208.10 3.85%
Liberty Global plc Series A (LBTYA) $10.52 3.27%
Liberty Global plc Series C (LBTYK) $10.27 2.99%
Booking Holdings Inc. (BKNG) $162.48 2.93%
T-Mobile Us, Inc. (TMUS) $172.52 2.88%
O'Reilly Automotive Inc. (ORLY) $91.20 2.82%
PACCAR Inc. (PCAR) $107.36 2.54%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Nvidia Corp. (NVDA) $162.70 -7.58%
Illumina Inc. (ILMN) $208.47 -6.40%
Baidu Inc. (BIDU) $77.79 -3.30%
Wynn Resorts Ltd. (WYNN) $83.65 -3.11%
Meta Platforms Inc. (META) $626.43 -2.96%
Cadence Design Systems Inc. (CDNS) $328.27 -2.95%
Synopsys Inc. (SNPS) $458.79 -1.98%
JD.com, Inc. (JD) $27.43 -1.93%
Microchip Technology Inc. (MCHP) $61.23 -1.73%