- Nvidia shares fell 7% after reports of CEO Jensen Huang's potential removal
- Semiconductor and AI stocks broadly declined amid cautious investor sentiment
- Intel, Marvell, Arm, and Qualcomm faced selling pressure before market open
US stock futures traded mixed on Thursday, with technology stocks bearing the brunt of selling pressure as Nvidia shares slumped following reports about the future of CEO Jensen Huang. However, the weakness extended beyond the chipmaker, with a broader selloff in semiconductor and artificial intelligence (AI) stocks, profit-booking after a strong previous session and concerns over rising bond yields adding to the cautious mood.
At 15:44:40, Nasdaq 100 futures for December 2026 were trading at 28,276.25, down 197 points, or 0.69%. Dow Jones futures for December 2026 stood at 52,647, up 69 points, or 0.13%, at 15:46:26.
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Here are three key reasons weighing on Wall Street futures.
1. Nvidia's Leadership Uncertainty
Nvidia shares came under significant pressure after The New York Times reported that Huang had an extramarital relationship with an executive at the company. Separately, The Wall Street Journal reported that Nvidia's board was preparing to remove him as CEO.
The reports have unsettled investors, given Huang's central role in building Nvidia into the world's leading AI chipmaker. Several Wall Street analysts told CNBC that his departure could potentially trigger a 20% decline in the stock, reflecting how closely the company's growth story is tied to his leadership.
Nvidia shares were down around 7% in premarket trading, extending a sharp decline that has already taken the stock more than 20% lower over the past month.
2. Selloff Spreads Across Chip And AI Stocks
The pressure was not confined to Nvidia. Several semiconductor and AI-linked stocks also traded lower, signalling that investors were becoming more cautious about the broader technology trade.
Intel, Marvell, Arm and Qualcomm were among the chip stocks under pressure. CoreWeave, despite reporting better-than-expected results and raising its revenue outlook, fell 7.2% in premarket trading.
However, the weakness was not universal. Advanced Micro Devices (AMD) and Broadcom moved higher, gaining around 3% and 2.5%, respectively, before the opening bell.
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3. Profit-Booking And Rising Bond Yields
Thursday's weakness also followed a strong rally in the previous session. On Wednesday, the Dow Jones Industrial Average gained nearly 255 points, or 0.5%, while the S&P 500 advanced 1.3%. The Nasdaq Composite jumped 1.6%, supported by a rebound in Nvidia and gains in AI-related stocks.
Investors also remained cautious amid concerns about inflation, the possibility of further Federal Reserve rate hikes and rising long-term borrowing costs. The 10-year US Treasury yield hovering near 5% has added another layer of uncertainty to equity valuations.
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