The US stock market has erased its early losses after absorbing big swings for Nvidia’s stock and oil prices.
asserted
market → erase → stock
The moves suggest Wall Street sees limited fallout for the artificial intelligence industry, which carries immense influence on the market, following the sudden fall for one of its biggest evangelists.
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which → suggest → evangelists
After dropping nearly 1 per cent at the start of trading, the S&P 500 quickly erased all of the loss and turned 0.2 per cent higher.
asserted
S&P → drop → loss
The Dow Jones Industrial Average was up 175 points, or 0.3 per cent, in early afternoon trade, while the Nasdaq composite rose 0.2 per cent after eliminating an early drop of 1.6 per cent.
asserted
composite → rise → cent
The Australian sharemarket is set to retreat, with futures pointing to a loss of 29 points, or 0.3 per cent, at the open.
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futures → set → open
The ASX slipped by less than 0.1 per cent on Thursday.
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ASX → slip → Thursday
It plunged 14 per cent at the start of trading following the resignation of Jensen Huang, its CEO, co-founder and face of the brand.
asserted
It → plunge → brand
The chip company’s stock has been sinking since its board announced an investigation into Huang for a relationship with a woman suspected of being a Chinese government agent.
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board → sink → woman
It’s a stunning fall for Huang and for Nvidia, which had become Wall Street’s most valuable and influential stock because of its central role in the AI boom.
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which → ’ → boom
Its stock price set a record last month after soaring an astounding 1722 per cent in four years.
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price → set → years
That compares with the already healthy gain of nearly 109 per cent for the overall S&P 500 over the same time.
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That → compare → time
But Nvidia’s price dropped 27 per cent from then through Wednesday on worries about whether Huang would remain as CEO and how Nvidia would navigate a future without him.
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Nvidia → drop → him
Nvidia’s board answered the first question Thursday morning, when it said Huang resigned, and it named Chief Financial Officer Colette Kress as its interim CEO.
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it → answer → CEO
The second question remains to be determined.
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question → remain → ?
And it looms over the entire market because Nvidia and the broader AI industry have been the main reasons the US stock market has set so many records in recent years.
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market → loom → years
Nvidia, to be sure, is still selling AI chips at a quick rate regardless of who stands on a stage and talks them up, and analysts said it remains the industry’s leader.
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it → sell → them
That helped Nvidia quickly halve its early loss from Thursday, and its stock was most recently down 4.7 per cent.
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stock → help → Thursday
That paring helped the broader market to recover.
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market → help → ?
Outside of Nvidia, other stocks across the AI industry swung in the uncertainty.
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stocks → swing → uncertainty
CoreWeave, which buys Nvidia chips and then rents out access to them to customers over the cloud, fell 6.5 per cent.
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which → buy → cloud
Micron Technology, which sells memory for computers that’s been getting gobbled up in the AI frenzy, sank 2.3 per cent.
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that → sell → frenzy
But Broadcom rose 5.8 per cent, and Advanced Micro Devices added 5.6 per cent on hopes the rival chip companies will gain a competitive advantage.
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companies → rise → advantage
Those two gains came close to offsetting the drop for Nvidia, which was the single heaviest weight on the S&P 500.
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which → come → S&P
That suggests investors see the AI business expanding to other players rather than depending solely on Nvidia.
uncertain
business → suggest → Nvidia
Demonstrating how much uncertainty was washing through the market was GE Vernova, which is helping to power AI data centres.
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which → demonstrate → centres
It flipped from an early loss of 3 per cent to a gain of 2.3 per cent.
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It → flip → cent
Also helping to support the US market were gains for companies in the oil and gas industry.
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gains → help → industry
Marathon Petroleum climbed 3 per cent, and ExxonMobil added 1.8 per cent.
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ExxonMobil → climb → cent
They benefited from a rise in oil prices after President Donald Trump said he’s no longer interested in a deal with Iran to end their war.
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he → benefit → war
Instead of that, Trump said he asked his vice president to investigate US cities and states run by Democrats.
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he → say → Democrats
“We don’t need a deal with Iran,” Trump said.
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Trump → need → Iran
“Those days have long since passed.
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days → pass → ?
We’ve got their money, Hundreds of Billions of Dollars, and we’ve got their Strait!”
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we → get → Strait
The price for a barrel of Brent crude oil suddenly went from about $US92 to more than $US94 following Trump’s posting, before it later eased back.
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it → go → posting
The price for the most actively traded contract in the Brent market has been veering sharply since the United States and Israel began the war with Iran in late February, bouncing between roughly $70 and $120.
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States → trade → 70
Higher oil prices push up worries about inflation, and the yield on the 10-year Treasury climbed to 5.10 per cent from 4.98 per cent late Tuesday.
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yield → push → cent
Trading in the bond market had been closed Wednesday for Veterans Day.
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Trading → close → Day
Higher yields make borrowing money more expensive for everyone, from the US government to companies building AI data centres to regular people buying houses.
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borrowing → make → houses
High mortgage rates helped send sales of previously occupied US homes in October to their slowest pace in more than 16 years.
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rates → send → years
The housing industry has been slowing the US economy but not upending it.
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industry → slow → it
…and 3 more, not listed.
The Aporia
