US stock markets closed modestly lower on Thursday, led by losses in technology shares as investors reacted to turmoil at Nvidia following the departure of chief executive Jensen Huang.
The tech-heavy Nasdaq fell 0.4% to 25,366.09. The broader S&P 500 also lost just under 0.4% to 7,592.40, while the Dow Jones Industrial Average slipped by the same margin to 52,297.09.
Nvidia shares dropped more than 4%, after falling much more sharply earlier in the session. As the company’s founder and chief executive, Huang had been a central figure in the expansion of the artificial intelligence sector.
Under his leadership, Nvidia also became a major investor in companies building AI data centres. His departure appeared to weigh on the wider technology sector as investors assessed the potential impact on growth and investment across the industry.
Attention has also turned to reports about Huang’s relationship with a woman suspected of links to Chinese intelligence services. The issue has sharpened focus on exports of advanced chip technology to China, where many US politicians are already pushing for tighter restrictions.
At the same time, reports of extramarital affairs and the effect on Nvidia’s share price have triggered mass legal claims from angry investors.
Technology stocks were also pressured by quarterly results from data centre group Nebius. Investors were unsettled by the Amsterdam-based company’s more cautious revenue forecast, as it provides computing power for AI applications.
Nebius shares tumbled 17%, while rival CoreWeave fell 7%.
Oil prices rose again after comments by US President Donald Trump about the conflict with Iran: Trump said he did not need a peace deal with Tehran.
A barrel of US crude climbed 3% to $89.08, while Brent crude rose 3.7% to $96.23 a barrel.
