New York stock market, Dow index alone rose 0.1%... NVIDIA 2%↓, continued decline (comprehensive)
NVIDIA stock price falls 2.01%, market capitalization falls below $4 trillion
Quick Look
- The New York stock market closed mixed in the aftermath of the scandal involving former Nvidia CEO Jensen Huang.
- The Dow rose 0.10%, while the Nasdaq fell 0.91%.
- Nvidia's stock price fell 2.01%, its market capitalization falling below $4 trillion, and semiconductor stocks such as SK Hynix ADR and Micron also showed weakness.
AI-generated summary
Why It Matters
As the aftermath of the scandal involving former NVIDIA CEO Jensen Huang continued, major New York stock market indices showed mixed results. Due to the decline in Nvidia's stock price, its market capitalization fell below $4 trillion, and technology stocks in general showed weakness. The U.S. producer price index for October, announced on the same day, was below market expectations.
On the 13th (local time), major indices closed mixed on the New York Stock Exchange as the aftermath of the scandal involving former NVIDIA CEO Jensen Huang continued.
On this day, the Dow Jones Industrial Average closed at 52,347.55 on the New York Stock Exchange (NYSE), up 50.46 points (0.10%) from the previous day.
The Standard & Poor's (S&P) 500 Index closed at 7,561.67, down 30.73 points (0.40%) from the previous day, and the Nasdaq Composite Index closed at 25,136.27, down 229.82 points (0.91%).
NVIDIA stock price closed 2.01% lower. As a result, Nvidia's market capitalization fell below $4 trillion.
The decline continued due to concerns about leadership vacuum and regulatory uncertainty.
Major investment banks (IBs), including HSBC, lowered their target stock prices, saying that stock prices may remain stagnant for a while until the succession plan becomes visible.
Nvidia's decline spread to technology stocks in general.
Major semiconductor stocks also showed weakness, with SK Hynix's American Depository Receipt (ADR) falling 4.30% and Micron's falling 2.52%.
The Philadelphia Semiconductor Index fell 3.43%.
NVIDIA's competitors AMD and Broadcom, which had soared the previous day in anticipation of a return from the Jensen Huang scandal, also plunged 8.75% and 4.76%, respectively, on this day.
In conjunction with the burden of expanding artificial intelligence (AI) infrastructure, Neocloud and related server equipment stocks such as Coreweave (-6.13%) and Nevius (-9.92%) were also significantly pushed back.
On the other hand, Apple (up 0.35%), which emerged as a safe haven by keeping a relative distance from the high-cost AI infrastructure competition, supported the index's downward trend by breaking an intraday all-time high.
The U.S. wholesale price index announced on this day alleviated some concerns about the Federal Reserve's (Fed) sharp increase in base interest rates.
According to the U.S. Department of Labor, the Producer Price Index (PPI) in October rose 0.3% compared to the previous month, below market expectations (0.4%). However, compared to the previous year, it rose 6.5%, recording the highest rate of increase since November 2022.
Nevertheless, as caution about the Federal Reserve's December interest rate hike path remained, U.S. Treasury yields rose and the dollar continued to strengthen.
The U.S. 10-year Treasury bond interest rate rose 2bp (1bp = 0.01% point) to 5.15%.
The dollar index, which represents the value of the dollar against the currencies of six major countries, rose 0.23% to 103.41.
Bitcoin plunged 3.9%, falling below the $70,000 level.
What to Watch
AI outlook — possibilities, not facts
Nvidia's stock price may remain stagnant until the succession plan becomes visible.
Likely · Within weeks
Open Questions
- What are the specifics of the Jensen Huang scandal?
- When will NVIDIA's succession plan become visible?
- What will be the long-term impact of Nvidia's stock price decline on the global semiconductor supply chain?
