US stocks declined on Thursday as investors assessed the departure of Nvidia chief executive Jensen Huang and renewed uncertainty surrounding the Iran war.
The Nasdaq Composite fell 0.39% to 25,366.09, while the S&P 500 declined 0.35% to 7,592.40. The Dow Jones Industrial Average lost 189.40 points, or 0.36%, to close at 52,297.09.
Nvidia shares dropped more than 4%, touching a 52-week low after the chipmaker announced Huang’s resignation and appointed chief financial officer Colette Kress as interim chief executive. The departure followed reports concerning Huang’s relationship with a woman alleged to have links to Chinese intelligence. The stock had fallen by double digits earlier in the session before recovering some of its losses.
Investors shifted towards competing semiconductor companies, with AMD and Broadcom each gaining more than 5%. Alphabet also advanced nearly 2%, reflecting continued interest in alternative chip suppliers and companies developing their own artificial intelligence processors. The contrasting performance highlighted the market’s reassessment of competition within the AI semiconductor industry, as major technology companies continue investing in proprietary chips and data centre infrastructure.
Oil prices rose sharply after US President Donald Trump signalled a tougher stance towards negotiations with Iran, raising concerns about further escalation in the Iran war. West Texas Intermediate crude gained 2.55% to settle at US$88.74 a barrel, while Brent crude climbed 3.3% to US$95.82.
The increase reversed some of the recent decline in energy prices and renewed concerns about inflationary pressures, particularly as investors assess the Federal Reserve’s interest rate outlook following stronger-than-expected US inflation data earlier in the week.
Australian Market Outlook
Australian shares are set to open lower on Friday, with S&P/ASX 200 futures down 61 points, or 0.66%, to 9,121.
Local technology stocks could face pressure following Nvidia's decline, although gains among competing US semiconductor companies suggest investor demand for artificial intelligence infrastructure remains resilient.
Energy stocks may attract attention after Brent crude climbed above US$95 a barrel, while higher oil prices could renew concerns about inflation and the outlook for interest rates.
Investors will also monitor developments in the Middle East and the Federal Reserve's next policy decision following stronger-than-expected US inflation figures earlier in the week.
