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Stock market today: Nasdaq rallies despite Nvidia stock slide, Dow and S&P 500 rise as AI stocks rebound
Yahoo Finance • • business
Key Points:
- U.S. stocks rose on Monday with the Dow Jones up 1.7%, S&P 500 up 2.1%, and Nasdaq up 2.6%, as investors focused on AI-related trades despite recent market volatility and Nvidia CEO Jensen Huang's personal scandal.
- Nvidia's stock fell as much as 8% following news that its board is investigating CEO Huang's extramarital affair with a woman alleged by U.S. intelligence to be a Chinese spy, though broader markets largely shrugged off the news.
- Alphabet announced two new AI chips aimed at competing with Nvidia, boosting Google shares by nearly 3%, highlighting intensifying competition in the AI semiconductor sector.
- Despite Nvidia's troubles, other chipmakers like AMD, Micron, and ASML rallied, and major tech stocks including Tesla gained, reflecting ongoing investor interest in AI and semiconductor industries.
- The Nvidia CEO scandal is significant as the company is valued at $4.5 trillion, representing a major "key-person risk," with investors and analysts closely watching the board's investigation and Huang's future at the company.
