December Nasdaq 100 E-Mini futures (NQZ26) are down -0.83% this morning as a leadership crisis at Nvidia dampened sentiment toward the broader AI trade.
Nvidia (NVDA) sank over -6% in pre-market trading as the company’s board is weighing the future of CEO Jensen Huang following reports that he had engaged in two extramarital affairs.
The upheaval at Nvidia stalled a rebound in chip and AI infrastructure stocks. Sandisk (SNDK) was down over -4%, while Micron Technology (MU) and Intel (INTC) each fell more than -3%.
Investors are now awaiting a fresh batch of U.S. economic data, remarks from Federal Reserve officials, and earnings reports from several high-profile companies.
In yesterday’s trading session, Wall Street’s three main equity benchmarks closed higher as upbeat earnings from CoreWeave, robust demand for Anthropic PBC’s IPO, and record quarterly revenue at OpenAI reignited enthusiasm for the AI trade. CoreWeave (CRWV) popped over +24% and was the top percentage gainer in the Nasdaq 100 after the neocloud company reported better-than-expected Q3 results and raised its full-year revenue guidance. Also, chip and AI infrastructure stocks rallied, with Sandisk (SNDK) jumping over +13% to lead gainers in the S&P 500 and Micron Technology (MU) surging more than +11%. In addition, Corning (GLW) climbed over +7% after Jefferies initiated coverage of the stock with a Buy rating and a $134 price target. On the bearish side, Applied Aerospace & Defense (AADX) plunged more than -13% after the company cut its full-year revenue guidance.
Today, investors will focus on U.S. initial jobless claims data, set to be released in a couple of hours. Economists expect applications for U.S. unemployment benefits to come in at 194K in the week ended Nov. 7, compared with 189K in the prior week.
The National Association of Realtors’ existing home sales report will also be released today. Economists project sales of previously owned U.S. homes to come in at 3.89 million units (annualized) in October, compared with 3.99 million units in September.
The EIA’s Weekly Petroleum Status Report will be released today as well. Economists expect crude oil inventories to decline by 0.6 million barrels in the week ended Nov. 6, compared with a decrease of 0.9 million barrels in the prior week.
In addition, market participants will parse comments from Fed Governor Michael Barr, Cleveland Fed President Beth Hammack, Chicago Fed President Austan Goolsbee, San Francisco Fed President Mary Daly, Kansas City Fed President Jeff Schmid, and New York Fed President John Williams today.
On the earnings front, prominent companies such as Cisco Systems (CSCO), Applied Materials (AMAT), Nebius Group (NBIS), and Cerebras Systems (CBRS) are scheduled to report their quarterly results today.
U.S. rate futures are currently pricing in an 86.5% probability of a 25-basis-point rate hike and a 13.5% probability of a 50-basis-point rate hike at December’s monetary policy meeting.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 5.00%, up +0.20%.
The Euro Stoxx 50 Index is up +0.38% this morning, supported by strong corporate earnings, lower oil prices, and a rotation out of AI-related stocks. Defensive healthcare and consumer-related stocks outperformed on Thursday as investors sought refuge from volatility in the AI trade. At the same time, chip-related stocks slumped as Nvidia’s leadership crisis dampened sentiment toward the sector. Preliminary data from the Office for National Statistics released on Thursday showed that the U.K. economy expanded in the third quarter at its fastest pace in two and a half years, helped by a boost from AI. Meanwhile, Eurozone government bond yields fell on Thursday as investors sought safety amid tech-sector turbulence and inflation concerns eased following the drop in oil prices. Elsewhere, the Financial Times reported on Thursday that France signaled it could back Spain’s nominee, Pablo Hernandez de Cos, to succeed Christine Lagarde as European Central Bank president next year. In corporate news, Siemens AG (SIE.D.DX) rose over +3% after the industrial conglomerate posted better-than-expected Q4 results and raised its mid-term revenue growth forecast. Also, Merck (MRK.D.DX) gained more than +2% after the drugmaker boosted its annual guidance for the third time this year.
U.K. GDP data were released today.
U.K. GDP rose +0.7% q/q and +1.9% y/y in the third quarter, in line with expectations.
U.K. September GDP rose +0.2% m/m and +2.1% y/y, stronger than expectations of no change m/m and +1.9% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index ($CHSC) closed down -0.67%, and Japan’s Nikkei 225 Stock Index ($NKY) closed down -0.70%.
China’s Shanghai Composite Index closed lower today, ending a three-day advance. Gold-related and robotics stocks led the declines on Thursday. Semiconductor stocks bucked the weakness as the upheaval at Nvidia fueled optimism that domestic suppliers could capture market share from the U.S. chip giant. Meanwhile, China’s foreign ministry said on Thursday that the U.S. should stop citing allegations of Chinese espionage involving Nvidia CEO Jensen Huang to justify technology restrictions, adding that Chinese officials were in contact with their American counterparts ahead of a planned meeting between the countries’ leaders. Elsewhere, the People’s Bank of China, in its third-quarter monetary policy implementation report released on Wednesday, pledged to strengthen countercyclical adjustments, boost domestic demand, and optimize supply to help meet the country’s annual economic targets amid domestic and external challenges. Analysts said the PBOC’s report signaled that policymakers are focused on stabilizing China’s capital markets and reducing financial risks. In corporate news, Alibaba Group plunged over -6% in Hong Kong as the Nvidia turmoil fueled investor concerns about tighter restrictions on the tech giant’s access to advanced chips.
Japan’s Nikkei 225 Stock Index closed lower today, snapping a three-session winning streak as the turmoil at Nvidia hit the AI trade. Most semiconductor-related and other AI-linked stocks slid on Thursday after Nvidia shares sank in U.S. after-hours trading on reports that the company’s board was preparing to oust CEO Jensen Huang. Nvidia-linked suppliers were hit particularly hard, with Ibiden slumping over -8% and Advantest falling more than -4%. However, gains in real estate, food, and transportation stocks helped limit the Nikkei’s losses. Data released on Thursday showed that Japan’s annual wholesale inflation picked up in October for the first time in three months, providing further evidence of persistent price pressures that bolster the case for a Bank of Japan interest-rate hike next month. Still, dovish BOJ board member Toichiro Asada said on Thursday that the central bank must proceed cautiously when tightening monetary policy, warning that higher interest rates could weigh on economic growth. “Downside risks to the economy posed by a policy rate hike will gradually increase if the continued rate hikes have tightened financial conditions or have reduced the degree of accommodation,” Asada said. Elsewhere, Japan’s top currency diplomat, Atsushi Mimura, warned market participants on Thursday that it was “too early to forget” this summer’s intervention as the yen once again approached the key 160-per-dollar level. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.01% at 36.08.
The Japanese October PPI rose +0.7% m/m and +7.1% y/y, stronger than expectations of +0.3% m/m and +6.5% y/y.
Pre-Market U.S. Stock Movers
Nvidia (NVDA) sank over -6% in pre-market trading as the company’s board is weighing the future of CEO Jensen Huang following reports that he had engaged in two extramarital affairs.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - November 12th
Cisco Systems (CSCO), Applied Materials (AMAT), Brookfield (BN), Nebius Group (NBIS), Cerebras Systems (CBRS), QXO, Inc. (QXO), Wise Group (WSE), Hudbay Minerals (HBM), Stantec (STN), Twist Bioscience (TWST), Forgent Power Solutions (FPS), Andersen Group (ANDG), Arrowhead Pharmace, NIQ Global Intelligence (NIQ), Mobility Global (MBGL), SOLV Energy (MWH), Octave Intuticals (ARWR), Belite Bio (BLTE)elligence (OCTV), Figure Technology Solutions (FIGR), HeartFlow (HTFL), DPC Holdings (DPC), X-Energy (XE), Accelerant Holdings (ARX), DLocal (DLO), Legence (LGN), Aya Gold & Silver (AYA), Ondas (ONDS), Cellebrite DI (CLBT), YETI Holdings (YETI), Liftoff Mobile (LFTO), Aveanna Healthcare Holdings (AVAH), Intuitive Machines (LUNR), Accelevation Holdings (ACCV), ERock (EROC), Spectrum Brands Holdings (SPB), Standard Nuclear (STDN), StoneCo (STNE), Wolverine World Wide (WWW), Inter & Co (INTR), Absci (ABSI), Yesway (YSWY), HawkEye 360 (HAWK), Arcos Dorados Holdings (ARCO), National Vision Holdings (EYE), AIR Global (AIIR), Taysha Gene Therapies (TSHA), Edgewell Personal Care Company (EPC), Flowers Foods (FLO), Nektar Therapeutics (NKTR), Fermi (FRMI), Suburban Propane Partners (SPH), TMC the metals company (TMC), Jefferson Capital (JCAP), Newsmax (NMAX), Tamboran Resources (TBN), York Space Systems (YSS), Afya Limited (AFYA), Katapult Holdings (KPLT), Cardinal Infrastructure Group (CDNL), WhiteHawk Minerals (WHK), T1 Energy (TE), Boost Run (BRUN), Vinci Compass Investments (VINP), Enovix (ENVX), Stratasys (SSYS), DiaMedica Therapeutics (DMAC), The RMR Group (RMR), Nexxen International (NEXN), United States Antimony (UAMY), Costamare Bulkers Holdings (CMDB), Relmada Therapeutics (RLMD), Allot (ALLT), Virgin Galactic Holdings (SPCE), NeuroPace (NPCE), Once Upon A Farm, PBC (OFRM), CorMedix (CRMD), Vista Gold (VGZ), Caledonia Mining Corporation (CMCL), Altimmune (ALT), Fennec Pharmaceuticals (FENC), Gemini Space Station (GEMI), Paysafe (PSFE), Seanergy Maritime Holdings (SHIP), CapsoVision (CV), Lifeway Foods (LWAY), SES AI (SES), Presidio Production Company (FTW), M-tron Industries (MPTI), Bit Digital (BTBT), Lineage Cell Therapeutics (LCTX), BK Technologies (BKTI), New Era Energy & Digital (NUAI), KinderCare Learning Companies (KLC), HireQuest (HQI), Alliance Entertainment Holding (AENT), Chicago Atlantic BDC (LIEN).
On the date of publication, Oleksandr Pylypenko did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.