Global markets experienced turbulence following the abrupt removal of Jensen Huang from his role as CEO of Nvidia. Investors are closely analyzing the potential impact of this leadership shakeup on tech stocks, while waiting for the U.S. producer price index data, to be released at 16:30, which could offer clues about the Federal Reserve’s pace of interest rate hikes.
Nvidia Leadership Change, Anthropic IPO Demand Surges
Thursday saw Nvidia shares plunge by more than 14% before narrowing losses to 4.3% by the close, as the company appointed former CFO Colette Kress as interim CEO and confirmed Huang’s departure. Nvidia is set to announce its third-quarter financial results on Tuesday.
According to sources familiar with the matter, artificial intelligence firm Anthropic is facing overwhelming demand for its shares, with requests nearly six times the number offered during its initial public offering, potentially marking it as one of the largest IPOs in history.
Bond Yields Climb; Dollar Briefly Tops 160 Yen
In the aftermath of Thursday’s sell-off in U.S. treasuries, bond yields surged sharply in Japan and Australia, driven by expectations of rapid interest rate hikes from the Federal Reserve. Fed official Williams remarked that inflation remains elevated, necessitating additional measures to curb price pressures.
The dollar crossed above 160 yen for the first time since September. Japan’s Finance Minister Katayama stated that they will continue close cooperation with Washington and are prepared to act against rapid, unilateral currency movements if necessary.
U.S. Treasury Secretary Bessent expressed a desire to see if Democrats are serious about reducing public debt and mentioned that the administration is open to addressing what it terms “tax loopholes” as part of a deficit reduction agreement.
Bitcoin Slips, Brent Crude Holds Most Gains
Amid concerns about inflation and higher interest rates, the cryptocurrency market came under pressure, with Bitcoin dropping below $70,000 for the first time since August.
Brent crude oil traded around $95.70 per barrel, maintaining the bulk of Thursday’s 3.3% climb. These gains were tempered by U.S. President Donald Trump’s comments that the U.S. is not compelled to strike a deal with Iran, thereby diminishing prospects for resolving the Middle East conflict that disrupts oil supply.
Should the U.S. producer price index surpass expectations, markets might bolster their expectations of a swifter Fed rate increase, which could also challenge Bitcoin’s ability to reclaim the $70,000 mark.
