Looking Past Nvidia Turmoil, Stocks Log Best Week in Months

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A drop in Nvidia shares after the ouster of the company’s chief executive has not spread to the rest of the market, as artificial intelligence stocks have broadly risen.

The stock market on Friday was set for its best week in months, as investors brushed off concerns about the resignation of Jensen Huang as chief executive of Nvidia, the behemoth chip maker.

The S&P 500 is on course to rise more than 3 percent for the week, which would be its best five-day stretch since early August. The Nasdaq Composite has also risen more than 3 percent so far this week.

The moves are 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.

“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 Mr. Huang, a standard-bearer for the A.I. revolution, had engaged in an extramarital affair with a woman believed to be a Chinese spy.

After reports that Mr. Huang had a second affair, this time with a subordinate employee, Nvidia’s board announced the chief executive’s departure on Thursday morning, a dramatic fall from grace for the tech mogul. Nvidia’s shares dropped on Thursday, and its stock is now about 30 percent below its all-time high, set just over a month ago. The company, which is the second-largest member of the S&P 500 index, behind Apple, is trading about 12 percent lower for the year.

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