Wall Street experienced a down day on Thursday, November 12, as the Nvidia saga weighed on market sentiment. The Dow Jones ended nearly 200 points lower, while the S&P 500 and Nasdaq Composite fell 0.35% and 0.4% respectively, recovering from earlier losses. Nvidia shares opened 14% lower after CEO Jensen Huang announced his resignation but recovered to close 4.5% down, with CFO Colette Kress named interim CEO.
The impact extended to companies where Nvidia holds stakes, particularly neoclouds like CoreWeave and Nebius Group. CoreWeave plunged as much as 16% before recovering to end 7% lower, while Nebius Group trimmed its sales outlook, causing a 17% drop. Losses were partly offset by gains in competitors AMD and Broadcom, both rising over 5%, and Alphabet, which ended 2% higher.
Market participants initially looked past Nvidia as a company-specific issue, but indices turned red again due to rebounding crude oil prices. Brent crude moved back towards $96 a barrel after US President Donald Trump's remarks on Truth Social. Additionally, fears of more aggressive rate hikes by the US Federal Reserve contributed to the decline, with Fed officials suggesting further tightening in December.
The US 10-year bond yield surged to 5.13% from around 5%, and the US Dollar index crossed 103. Later on Thursday, the US was set to report its Producer Price Inflation (PPI) figures, which could influence future Fed policy decisions.