On the 13th (local time), the New York stock market closed mixed as technology stocks weakened amid the fallout surrounding a scandal involving Jensen Huang, the former CEO of NVIDIA.
At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished up 50.46 points (0.10%) at 52,347.55.
In contrast, the S&P 500 fell 30.73 points (0.40%) to 7,561.67, and the tech-heavy Nasdaq Composite dropped 229.82 points (0.91%) to 25,136.27.
NVIDIA's share price continued its downward trend, falling 2.01% by the close. Due to the decline, NVIDIA's market capitalization fell below the $4 trillion mark. Major investment banks (IBs), including HSBC, lowered their price targets, noting that the stock could experience a period of stagnation until succession plans become clearer.
The negative news originating from NVIDIA spread across semiconductor and AI-related tech stocks. SK Hynix’s American Depositary Receipts (ADRs) dropped 4.30%, and Micron fell 2.52%. The Philadelphia Semiconductor Index also declined by 3.43%.
Meanwhile, AMD and Broadcom—which had surged the previous day on expectations of benefiting as NVIDIA's competitors—fell 8.75% and 4.76%, respectively. On the other hand, Apple rose 0.35%, hitting a new all-time high during intraday trading.
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