Nvidia CEO exit sparks chip selloff as Nasdaq drops 1.45%

Wall Street's technology trade took a beating Friday. As of 11:31 a.m. ET, the Nasdaq Composite had fallen 1.45%, landing at 24,998, while the S&P 500 slipped 0.82%, leaving it at 7,530. The Dow Jones Industrial Average held up better, off just 0.12% and sitting at 52,234, as investors rotated out of high-growth names.

The trigger was Nvidia. News that CEO Jensen Huang had resigned raised hard questions about the future of the chipmaker that anchors the AI boom, and the pain spread fast. Advanced Micro Devices plunged 9.89% as selling intensified across semiconductors, and Cisco Systems dropped 5.70% on broader weakness in enterprise tech.

Bonds piled on the pressure. The benchmark 10-year Treasury yield climbed to 5.10% after another round of inflation data, making fixed income look more attractive and future growth more expensive to finance. Technology and real estate stocks absorbed the steepest losses, while defensive consumer names outperformed and gold edged 0.13% lower, trading at $3,880.40.

Not everyone bled. Modine Manufacturing rocketed 28.41% following reports that Samsung Electronics was exploring a potential acquisition of the thermal management company. Nu Holdings climbed 10.95% as buyers favored select fintech stocks.

All eyes now turn to Nvidia's earnings next week, where investors will hunt for signs that demand, product development and customer spending are still intact despite the leadership shakeup.