Stocks Edge Lower as Nvidia Falls 4.3% on Huang Resignation and AMD Surges

U.S. stocks closed slightly lower on Thursday. The Dow Jones Industrial Average fell 0.36% to 52,297.09, the S&P 500 slipped 0.35% to 7,592.40 and the Nasdaq Composite declined 0.39% to 25,366.09. The pullback came a day after all three indexes rose together.

The Russell 2000 index of smaller companies fell 1.61% to 2,800.55. Small caps lost more ground than large caps.

Nvidia was the center of the day. Shares fell more than 13% in early trading after the news of Jensen Huang’s resignation, then recovered to close down 4.34% at $166.19. The board accepted Huang’s resignation on Wednesday night and announced it on Thursday morning. Chief Financial Officer Colette Kress is serving as interim chief executive.

AMD moved in the opposite direction. Shares of the fellow chipmaker rose 5.86% to $585.30. Nvidia’s loss and AMD’s gain split the chip sector on the day.

Rates also weighed on the market. The yield on the 10-year Treasury note reached 5.10%, up from around 5.00% the day before. A hot October consumer price report has strengthened expectations of a December rate increase.

The VIX, known as Wall Street’s fear gauge, rose to 18.98 from 17.49 the day before.

Set against Wednesday’s rally, Thursday’s decline looked like a pause. On Wednesday the Dow rose 0.49%, the S&P 500 gained 1.31% and the Nasdaq jumped 1.60%, led by a rebound in technology shares. Thursday gave back part of that move.

Uncertainty around Nvidia is not over. The board is searching for a successor, and the company reports earnings on Tuesday, Nov. 17, under Kress’s interim leadership. Investors will be watching that report next.