The Nasdaq Composite fell 0.9% as Google's more-than-4% drop was a main loser and a big reason for the decline, following a leadership shake-up at Google DeepMind. Nvidia bucked the weakness, climbing 3.8% for a fifth straight day of gains as investors weighed the outlook for AI infrastructure spending.
US stocks opened modestly higher before steady selling took hold through the session, and an added 0.3 percentage point slide in the final minutes left the Nasdaq Composite down 0.9% on the day. The retreat also carried elements of profit-taking after two strong days to start the week.
Google's DeepMind reshuffle rattles investors
Google shares fell more than 4%, a main loser and a big reason the Nasdaq fell, after Alphabet announced that Demis Hassabis is stepping away from day-to-day management of Google DeepMind to become Alphabet's chief scientist and DeepMind chairman. DeepMind Chief Technology Officer Koray Kavukcuoglu will take over daily responsibility for frontier-model research and Gemini development.
Longtime Google AI leader Jeff Dean is also leaving, along with several other senior researchers, to start a new venture called Discovery Loop. The moves stoked concern that they follow some kind of stumble in AI development at Google.
Nvidia extends its winning streak
Nvidia shares climbed 3.8%, a fifth consecutive day of gains, as the market appeared to accept that hyperscalers' AI capital-spending spree will continue and could still generate a positive return.
The chip maker is backstopping upwards of $250 billion of that spending, but margins are 80%, limiting its economic exposure to $50 billion, and it retains the option to resell chips.
Source: Investinglive RSS Breaking News Feed
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