Stocks slumped on Friday, led by the chip makers caught in the swirl of Nvidia’s leadership turmoil, at the end of another volatile five-days for the market that, nonetheless, remained on course for its best week in months.
The S&P 500 rose 2.5 percent for the week, notching its best weekly performance since early August. That would come despite a 0.4 percent decline on Friday, capping a week that swung from gains to losses and back multiple times.
The Nasdaq Composite rose roughly 2.3 percent for the week, even after a fall on Friday.
The moves mark an end to weeks of losses in which concerns about a slowdown in the growth of the artificial intelligence industry weighed on the market and prompted sharp sell-offs in many of the tech companies that have led the market higher in recent years.
Friday’s sell-off, however, underscored earlier analyst warnings of the likelihood of more volatility to come, even if many still expect the market to rally through the end of the year.
“The market is in an incredibly good position to move higher,” said Mark Hackett, chief market strategist for the investment management arm at Nationwide, an insurance company. “Once you get through the news-driven sentiment, you can get back to focusing on fundamentals. That is hopefully what we are seeing.”
The market was on edge after revelations that Jensen Huang, the Nvidia chief executive and a standard-bearer for the A.I. revolution, had engaged in an extramarital affair with a woman believed to be a Chinese spy.
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