US stocks rose at the start of the new week. The gain was helped by a drop in oil prices, which eased inflation fears. Technology shares also surged. The exception was chipmaker Nvidia, whose shares fell despite the rising market amid controversy surrounding its chief executive, Jensen Huang.
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Indexes gain more than 2 percent as investigation hits Nvidia’s leadership
The Dow Jones index rose by 1,104.02 points, or 2.15 percent, to 52,389.75 points. The broader Standard & Poor’s 500 index climbed by 173.08 points, or 2.35 percent, to 7,549.94 points. The tech-heavy Nasdaq index gained 673.71 points, or 2.74 percent, to 25,253.14 points.
Shares of chipmaker Nvidia fell sharply amid concerns about the future of CEO Huang at the company. The reason was a report that Huang allegedly had a relationship with a woman suspected of spying for China. According to Bloomberg, the 63-year-old Huang admitted to the relationship with this woman. Nvidia said its board of directors had initiated an independent investigation, and Huang added that he supports the investigation and will cooperate fully with it.
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Banks ease concerns over tech regulation as dollar corrects after sharp rise
Last week, US stocks weakened over fears that a Democratic victory in the US congressional elections would lead to tighter regulation of the technology sector. Some analysts, however, consider last week’s move an overreaction by the market. Morgan Stanley and UBS said that last week’s sell-off in artificial intelligence stocks was excessive and that the risks of extreme regulation of data center construction under a Democrat-controlled Congress are unlikely to materialize, Reuters reported.
The US dollar fell against major world currencies on foreign exchange markets today. This came after it posted its biggest one-day gain in almost six months on Friday. Easing fears of escalating tensions in the Middle East contributed to the dollar’s losses. The dollar index, which measures the value of the dollar against a basket of six leading world currencies, fell 0.6 percent to 101.67 points. The euro rose 0.7 percent against the dollar to USD 1.1222. The dollar weakened 0.3 percent against the yen to JPY 157.89. The euro strengthened 0.3 percent against the yen to JPY 177.19.
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Source: ČTK
