US stocks closed lower on Thursday as a sharp fall in Nvidia shares following the departure of its CEO Jensen Huang weighed on the broader market, offsetting gains in energy stocks amid rising oil prices.Nvidia shares plunged nearly 12% in early trading before recovering some of their losses to close lower. The chipmaker’s stock has been under pressure since its board announced an investigation into Huang over his relationship with a woman suspected of being a Chinese government agent. The company named Chief Financial Officer Colette Kress as its interim CEO following Huang’s resignation.The S&P 500 fell 25.99 points, or 0.34%, to end at 7,593.39, while the Nasdaq Composite lost 102.44 points, or 0.40%, to 25,363.75. The Dow Jones Industrial Average declined 190.29 points, or 0.36%, to 52,296.20, according to preliminary data.Retail investors purchased about $111 million worth of Nvidia shares in the first half-hour of trading, marking the biggest opening buying activity on record for the stock, according to Vanda Analytics.The decline in Nvidia shares also weighed on other artificial intelligence-linked stocks, although some of its competitors advanced. Broadcom rose 5.2%, while Advanced Micro Devices gained 5.9%. Alphabet and Amazon also moved higher, providing some support to the S&P 500.The Philadelphia Semiconductor index declined after gaining 17.2% over the previous four sessions. AI cloud companies Nebius and CoreWeave also fell, while data centre-related firms IREN and Applied Digital recorded losses.Nvidia’s leadership change has raised questions about the future of the AI industry, which has played a significant role in driving Wall Street’s gains in recent years. Investors are also scrutinising the company’s financing arrangements with several firms, including some of its customers.Brent crude futures climbed 3.3% to $95.82 a barrel. The S&P 500 energy index rose for a fourth consecutive session, emerging as the best-performing of the index’s 11 major sectors. Marathon Petroleum gained 3.2%, while Exxon Mobil advanced 2.3%.Higher oil prices also fuelled concerns over inflation, pushing the yield on the 10-year US Treasury to 5.10% from 4.98% late Tuesday. Higher bond yields increase borrowing costs for governments, businesses and consumers.US stocks have remained volatile in recent sessions amid concerns over potential AI regulation following sweeping Democratic victories in the midterm elections, alongside uncertainty surrounding Nvidia’s leadership and the broader technology sector.
