Jensen Huang's sudden departure pushed Nvidia toward a sixth consecutive weekly decline and cast doubt over the momentum of broader AI trades, including the upcoming initial public offering of Anthropic. Beyond corporate turmoil, macroeconomic data revealed the U.S. producer price index climbed 6.5% annually in October, registering its steepest rise since late 2022. This persistent inflation prompted hawkish commentary from Federal Reserve officials, cementing projections for interest rate hikes through December. Bucking the downward trend, Microsoft managed a 0.4% advance as technical disruptions across Teams and Outlook began to resolve.
Key points
Leadership turmoil at Nvidia has sparked widespread investor caution over the near-term h…: Leadership turmoil at Nvidia has sparked widespread investor caution over the near-term health of artificial intelligence investments.
Accelerating wholesale inflation has virtually guaranteed that the Federal Reserve will r…: Accelerating wholesale inflation has virtually guaranteed that the Federal Reserve will raise benchmark interest rates in December.
Major equity benchmarks declined during the session despite the S&P 500 and Nasdaq remain…: Major equity benchmarks declined during the session despite the S&P 500 and Nasdaq remaining poised to break four-week losing streaks.
Sources checked by our analysis pipeline: 1
(Updates to afternoon trading, adds analyst comments)
* Microsoft edges up after global outage eases
* Nvidia falls further following Jensen Huang's exit
NEW YORK, Nov 13 (Reuters) - US stocks were lower on Friday, as concerns about Nvidia pressured technology shares, while a reading on inflation failed to alter expectations for more rate hikes from the Federal Reserve.
Nvidia's shares fell 2.2% and were poised for their sixth straight week of declines, their longest streak since October 2012, after CEO Jensen Huang's resignation on Thursday, following revelations of his relationship with a businesswoman suspected by the US of spying for Beijing.
The Financial Times reported that Nvidia's board has approached British chipmaker Arm Holdings CEO Rene Haas in its search for a potential successor to Huang.
The uncertainty about leadership at the chipmaker has raised concerns about the durability of the AI trade, given Nvidia's primary role in the industry's boom and its financial ties to several companies in the sector, which has…
Bullion suffered significant pressure this week as persistent inflation signals and elevated energy costs reinforced expectations of prolonged monetary tightening by the Federal Reserve. Non-yielding assets faced headwinds despite softer wholesale inflation readings that slightly tempered bets on aggressive policy moves. The downward momentum extended across the broader metals complex, driving multiple assets toward weekly losses.
Jensen Huang's unexpected departure left a leadership vacuum and sparked regulatory scrutiny, driving the chipmaker's shares down roughly 30% into the $160 range. However, the resulting spike in implied volatility has inflated options premiums, giving investors a practical mechanism to monetize the prolonged turbulence. By deploying covered calls, market participants can construct a downside buffer while retaining exposure to the firm's foundational artificial intelligence advantages.
Market participants are closely watching shares of the company as trading pressure mounts during the current session. Additional information regarding the specific drivers behind the movement remains limited based on the initial market reports. Investors are currently awaiting further details to understand the broader implications of this sudden shift.