Wall Street closed sharply higher on Wednesday, November 11, before sentiment turned on Thursday as fresh turmoil around Nvidia unsettled technology stocks.
Wednesday's rally
The Dow Jones Industrial Average rose 254.60 points, or 0.49 percent, to close at 52,486.49. The S&P 500 gained 98.45 points, or 1.31 percent, to 7,619.38, and the Nasdaq Composite advanced 400.31 points, or 1.60 percent, to 25,466.19.
Technology led the advance. Apple shares climbed about 2 percent to a record closing price of 355.63 dollars, while CoreWeave surged roughly 25 percent after its earnings report eased investor worries about heavy spending on artificial intelligence. Nvidia steadied after two sessions of sharp declines. The CBOE Volatility Index, known as the fear gauge, fell 10.1 percent to 17.49.
Thursday's turn
The mood flipped before Thursday's open. Futures tracking the Nasdaq 100 fell about 0.86 percent, while S&P 500 futures were down about 0.4 percent and Dow futures were little changed in early trading. In late-morning trading, the S&P 500 was down about 0.67 percent and the Nasdaq 100 about 1.44 percent.
The trigger was Nvidia. Reports said the chipmaker's board was weighing the removal of chief executive Jensen Huang, sending the shares down about 8 percent in after-hours trading. Nvidia later confirmed that Huang had resigned with immediate effect and named chief financial officer Colette Kress as interim chief executive. Chipmakers Intel, Marvell Technology and Micron fell between 2.7 and 3.5 percent in early trading, and CoreWeave gave back about 7 percent.
What to watch next
Investors are awaiting the Producer Price Index on Friday, which could shape inflation expectations after data earlier this week showed consumer prices rose more than expected. Traders see a December interest-rate hike by the Federal Reserve as a near certainty, with about a 10 percent chance of a larger 50-basis-point move, according to the CME FedWatch tool. The 10-year Treasury yield was near 5.00 percent on Thursday morning.
This article is for information only and is not financial advice.
Sources: Zacks, Reuters, Moneycontrol, The Economic Times
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