Speculation around Nvidia’s potential CEO transition has intensified, sparking a wave of selling in global markets. The company’s stock saw a sharp decline of up to 10% in late U.S. trading, while Nasdaq 100 futures slipped 1.2% and S&P 500 futures lost 0.5%, erasing part of Wednesday’s gains.
Search for New Leadership at Nvidia
According to a source familiar with the matter, Nvidia has partnered with another firm to scout for potential successors to CEO Jensen Huang. This development follows allegations of Huang’s involvement in multiple extramarital affairs. Notably, one of the women allegedly linked to Huang is under suspicion of espionage activities on behalf of China, compounding the challenges for Nvidia.
U.S. Bonds Gain, Brent Crude Dips Below $92
The U.S. bond market resumed trading post-Veterans Day holiday, with longer-term Treasury bills rising in value amid increased demand for safe-haven assets due to the uncertainty surrounding Nvidia. The yield on the 30-year bond fell by 2 basis points to 5.33%, while the 10-year yield remained steady at 4.99%.
Indonesia’s central bank intervened to stabilize the rupiah, which fell to a record low. Simultaneously, the Japanese yen hovered close to 160 per dollar.
The price of Brent crude oil dropped below $92 per barrel, nearing a two-month low. Contributing factors include increased Middle Eastern production and limited tensions between the U.S. and Iran, which have exerted downward pressure on the oil market. Gold continued its decline from Wednesday, affected by stronger-than-expected U.S. inflation figures and hawkish comments from Federal Reserve officials.
Losses in the Nasdaq 100 futures were more than double those in the S&P 500. The 2.6% drop in the Taiwan Index further emphasized the heightened sensitivity of technology-heavy indices to Nvidia’s present uncertainty.
