S&P 500 Recovered $1 Trillion in 90 Minutes Despite Wider Market Crash
The S&P 500 index recovered more than $1 trillion in market value in roughly 90 minutes on Thursday, defying an initial plunge triggered by Nvidia’s founder Jensen Huang’s abrupt resignation.
The S&P 500 initially fell nearly 1% at the opening bell as Nvidia shares plunged up to 14% following Huang’s abrupt resignation.
Within about 90 minutes, the index had fully recovered its losses, a remarkable turnaround that saw it gain 3.65% for the week.
You notice some of Nvidia’s losses have been offset by gains in competitors.
Investors bet on AI demand
Gains in Nvidia’s competitors helped offset the company’s losses, suggesting investors remained willing to bet on demand for AI chips despite the leadership upheaval.
Retail investors bought an estimated $111 million of Nvidia shares in the first half-hour alone, according to Reuters.
Colette Kress, Nvidia’s finance chief, has been appointed as interim CEO.
Key technical levels and risks
The S&P 500’s immediate challenge is holding above roughly 7,624, with a sustained move higher putting its record near 7,845 back in sight.
If selling returns, 7,484 is the first level to watch, followed by the November low near 7,350.
The rebound occurred despite the 10-year US Treasury yield climbing above 5%, making borrowing more expensive, and oil prices rising after President Donald Trump hardened his position on Iran.
Next steps for investors
Nvidia’s next earnings report on November 17 will test whether customers’ spending and growth expectations can withstand the leadership change.
Whether the current market enthusiasm survives higher yields and the first earnings report without Huang remains the bigger question for investors.
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