The S&P 500 looked headed for a bruising Thursday after Nvidia lost as much as $600 billion in market value. Then Wall Street reversed course.
The index fell nearly 1% at the opening bell as Nvidia shares plunged up to 14% following founder Jensen Huang’s abrupt resignation. Within about 90 minutes, the S&P 500 had recovered its losses.
Why Didn’t Nvidia Drag Down the Whole Market?
Nvidia’s sell-off was severe, but it eased as trading progressed. Buyers also moved into its competitors: AMD rose roughly 7%, while Broadcom gained more than 5%.
Gains elsewhere helped offset Nvidia’s losses, suggesting investors were still willing to bet on demand for AI chips, even as they questioned Nvidia’s leadership.
Retail investors bought an estimated $111 million of Nvidia shares in the first half-hour alone, Reuters reported.
“You notice some of Nvidia’s losses have been offset by gains in competitors,” Peter Tuz, president of Chase Investment Counsel, told Reuters.
Nvidia has appointed finance chief Colette Kress as interim CEO. Its next earnings report on November 17 will test whether customers’ spending and growth expectations can withstand the leadership upheaval.
What Should Stock Market Investors Watch Next?
The S&P 500 rebound happened despite another warning sign: the 10-year US Treasury yield climbed above 5%, making borrowing more expensive.
Oil prices also rose after President Donald Trump hardened his position on Iran, adding to inflation worries.
On the chart, the S&P 500’s immediate challenge is holding above roughly 7,624. A sustained move higher would put its record near 7,845 back in sight.
If selling returns, 7,484 is the first level to watch, followed by the November low near 7,350.
Thursday showed that investors still want to buy market dips. Whether that enthusiasm survives higher yields and Nvidia’s first earnings report without Huang remains the bigger question.
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