Stock market today: Dow and Nasdaq slip as Nvidia falls on CEO exit

US stock indexes fell on Thursday as investors weighed rising government bond yields and fresh uncertainty surrounding the artificial intelligence boom following the sudden departure of Nvidia CEO Jensen Huang. The Dow Jones Industrial Average dropped 0.3%, while the S&P 500 declined by 0.3%. The tech-heavy Nasdaq Composite also fell 0.4%, reflecting a broader stock down trend across major exchanges after getting a lift from Wednesday's chip stock-led rally.

Meanwhile, the benchmark 10-year US Treasury yield climbed above 5% as investors grappled with the odds of more Federal Reserve interest rate hikes and renewed inflation concerns. The 10-year yield jumped 12 basis points to 5.12%, while the 30-year yield rose 9 basis points to 5.44%, exerting pressure on equities. Bond yields move in the opposite direction to bond prices. Several Fed officials expressed a bias toward raising interest rates. San Francisco Fed president Mary Daly noted that further tightening will be needed due to consistent pressure on inflation.

Nvidia stock tumbled over 4% after Jensen Huang resigned as CEO following claims of extramarital affairs. Reuters reported a third alleged affair involving Huang, following earlier media accounts of two other relationships. The chipmaker has long been at the center of the AI investment boom that has helped drive this year's stock market gains. Some chipmakers, including Intel and Micron, fell, while others, such as Broadcom and rival AMD, rose. In post-market trading, Cerebras Systems shares jumped 15% after reporting record third-quarter revenue and raising its full-year outlook.

Rising bond yields and the sudden departure of Nvidia CEO Jensen Huang pulled major US stock indexes lower.

Treasurys sold off after President Trump signaled that he has no plans to bring an immediate end to the war in Iran, indicating that inflation will continue to be a problem for the central bank. Wall Street analysts rapidly adjusted forecasts following Tuesday's hotter-than-expected inflation report. A more hawkish central bank is viewed as a negative for US borrowers and riskier assets, including cryptocurrencies. Most digital assets were in the red, with bitcoin tumbling below $72,000.

Why it matters

The sudden leadership changes at major technology firms combined with shifting monetary policy expectations create immediate volatility for global markets. Investors are reassessing risk as rising bond yields and potential interest rate hikes alter the financial landscape for equities and digital assets alike.