Wall Street rebounds as U.S. stocks surge, but Nvidia remains troubled amid corporate governance issues
U.S. stocks surged as Wall Street rebounded after the S&P 500 experienced its worst week since post-“Liberation Day” 2025.
Chip stocks led the AI trade recovery, with the Philadelphia Semiconductor Index climbing nearly 7% after dropping over 12% last week; however, Nvidia did not benefit from this rally due to a corporate governance crisis.
Oil price declines and President Donald Trump’s comments on Iran positively influenced market sentiment, while investors anticipated crucial U.S. inflation data this week.
The NASDAQ Composite rose 2.7% to 25,253.14 points, the S&P rose 2.4% to 7,550.41 points, recovering from a 2.7% drop last week, and the Dow Jones Industrial Average increased 2.2% to finish at 52,389.93 points.
Nvidia crisis
Nvidia was notably impacted as its board initiated an investigation after CEO Jensen Huang apologized for an affair with Alice Huang, suspected of being a Chinese spy by U.S. intelligence.
President Trump defended Huang, calling him “an honorable guy,” while Bernstein analysts warned the situation could distract or politically weaponize against Nvidia.
A report indicated a U.S. probe into a Singapore-based data center firm suspected of redirecting Nvidia AI chips to China was transferred to the Justice Department, highlighting the company’s influence over export controls.
Nvidia shares dropped over 4%, adding uncertainty for the company amid ongoing AI trade volatility.
