NVIDIA’s Leadership Crisis Is Dragging the S&P 500 Lower. Here’s What Else Is Moving Rich Duprey Thu, November 12, 2026 at 10:38 AM EST 4 min read NVDA -5.75% ^GSPC -0.20% ^DJI +0.11% SPY -0.21% AMAT -1.79% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
NVIDIA plunged 7% to about $161 after Jensen Huang resigned as CEO, leaving the chipmaker without a permanent leader.
Small caps fell hardest, with IWM down 1% while the Dow ETF DIA slipped just 0.1%, as technology led sector losses.
The 10-year Treasury yield climbed to 5% after hot inflation data renewed rate-hike talk, pressuring smaller companies' borrowing costs.
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The sudden leadership crisis at NVIDIA (NASDAQ:NVDA) is pulling Wall Street lower in early trading. Around 10:00 a.m. ET, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) was down 0.3%. NVIDIA shares fell 7% to about $161 after Jensen Huang resigned as CEO. The Wall Street Journal described his exit as an ouster.
These figures come from ETF proxies, which are delayed intraday readings.
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S&P 500: SPY fell 0.3%. Technology was the worst sector, down 0.9%.
Nasdaq: The Invesco QQQ Trust (NASDAQ:QQQ) fell 0.4%. It tracks the Nasdaq-100 rather than the Composite and is already down nearly 8% over the past month.
Dow: The SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) fell only 0.1%. Gains in consumer discretionary and energy, the session's two strongest sectors, offset part of the drop.
Russell 2000: The iShares Russell 2000 ETF (NYSEARCA:IWM) fell 1.2%, the largest decline of the group.
VIX: The VIX closed Wednesday at about 17, within the normal 15 to 20 range, after falling about 2 points.
Earlier this week, NVIDIA's board opened an independent investigation into reports about Huang. The New York Times then reported the news. He had a relationship with an Nvidia executive who reports to him. The stock opened near $151 and reached $149 before buyers cut the loss. NVIDIA was SPY's largest holding. At about 8% in the fund's March fact sheet, its drop alone accounts for much of the S&P 500's decline.
The selling has spread to other AI names. Applied Materials fell 3% to about $385. The decline adds to a 22% slide over the past month.
Small caps are falling for a reason beyond NVIDIA. Tuesday's hot inflation report renewed talk of rate hikes. The 10-year Treasury yield rose to 5.0% from 4.9% the day before. Higher borrowing costs weigh heavily on smaller companies. Rising oil prices are also lifting energy while weighing on the broader market.
Owning an S&P 500 fund still leaves you exposed to large single-company events, as a management crisis at one company is moving the whole index. The VIX hit about 28 on November 5. It has since fallen, so traders have recently paid up for protection quickly.
Look for NVIDIA's board to name permanent leadership. Its next earnings report will also test the guidance for $108.0 billion in quarterly revenue. Until then, the 10-year yield near 5% is likely to have the most influence on small caps.
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