In order to investigate the effects of nonmagnetic impurities in strongly correlated systems, quantum Monte Carlo (QMC) simulations have been carried out for the doped two-dimensional Hubbard model with one nonmagnetic impurity. Using a bare impurity potential which is onsite and attractive, magnetic and single-particle properties have been calculated. The QMC results show that giant oscillations develop in the Knight shift response around the impurity site due to the short-range antiferromagnetic correlations. These results are useful for interpreting the NMR data on Li- and Zn-substituted layered cuprates.