Wall Street stocks mostly lower as Nvidia extends slump

Detailed summary

Wall Street stocks mostly fell Friday as tech shares remained under pressure following the shock downfall of Nvidia's chief Jensen Huang, while the dollar rose following…

Wall Street stocks mostly fell Friday as tech shares remained under pressure following the shock downfall of Nvidia's chief Jensen Huang, while the dollar rose following additional data that showed US inflation is persisting.

Huang, perhaps the tech industry's most recognized booster of artificial intelligence, stepped down Thursday following revelations of extramarital affairs, including with a woman suspected of being a Chinese spy.

The shakeup has battered shares of Nvidia, until recently the world's most valuable publicly traded company, with the company dropping another two percent on Friday.

On Friday, two Nvidia rivals that had rallied on Thursday -- AMD and Broadcom -- also stumbled. AMD sank 8.8 percent while Broadcom fell nearly five.

Angelo Kourkafas of Edward Jones attributed the pullback in those two stocks to profit-taking.

"There is certainly a defensive leadership as we look at the sectors, which points to some caution," said Kourkafas, who expects AI to be in the spotlight again next week when Nvidia reports quarterly results and Anthropic makes its Wall Street debut.

Elsewhere, the Producer Price Index -- which measures the prices that farms, factories and other makers of goods receive -- rose by 0.3 percent in October from the previous month.

The report comes on the heels of a hot consumer prices reading earlier in the week that also highlighted the impact of increased energy costs due to the US–Iran war.

Investors expect the US Federal Reserve to lift interest rates by at least a quarter percentage point next month to try to rein in stubborn inflation.

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