Nvidia Slides 5% Premarket on Huang Probe as Futures Climb
Index futures point higher to open the week while CPI, PPI and the tail of earnings season set the agenda.
Photo by Mariia Berezovsky on Unsplash
Nvidia fell about 5% premarket after its board opened a probe into CEO Jensen Huang, but S&P 500 and Dow futures pointed higher before the open Monday.
Futures point higher despite the Nvidia drag
U.S. index futures pointed higher Monday morning, even with the largest AI chipmaker sliding. S&P 500 futures were up 0.7% before the bell, Dow futures gained 1%, and Nasdaq futures added 0.4%. The tech-heavy index is lagging, which fits the Nvidia weight.
Friday closed mixed after a volatile week for Big Tech. The S&P 500 sits 5.7% below its record high from last month, set before the midterm elections upended trading. Monday's tape looks tame next to the swings that ended last week.
Nvidia's board opens an investigation into Huang
Nvidia (NVDA) fell about 5% in premarket trading after its board announced an independent investigation on Sunday. The probe covers reports that CEO Jensen Huang was the target of a foreign intelligence effort. Huang acknowledged a relationship with a business executive whom U.S. authorities concluded was a Chinese intelligence asset, according to The New York Times. China's Foreign Ministry dismissed the claims as unsubstantiated.
The board says it has confidence in Huang. Investors are weighing something else, which is whether he stays. Wedbush-style bulls are not the only ones saying it. Dan Ives of Yorkville Ives & Co. called the episode a black eye and said no one on the bench can step in seamlessly. Nvidia has no dual-class structure to protect its founder.
The selloff extends last week's losses and pushes shares to fresh multi-month lows. The all-time high of $243.37 came just last month.
AI suppliers rebound in Asia
The damage stayed contained to Nvidia. TSMC closed 4.7% higher in Taiwan, while Samsung Electronics and SK Hynix finished up 0.6% and 0.4%. Those gains came after last week's selloff in AI-linked names.
That split matters. Traders are separating the AI hardware trade from the Nvidia leadership question, at least for now. The next test is whether U.S. semiconductor peers hold their premarket strength once Nvidia opens under pressure.
Inflation data and earnings wind-down
The macro calendar takes over from here. Consumer price index (CPI) and producer price index (PPI) readings land this week and will shape the read on Federal Reserve policy. WTI crude traded near $90.47 a barrel, down 0.4%, which keeps energy costs in the inflation conversation.
Earnings season is winding down. Berkshire Hathaway's third quarter results were among the notable reports. The [earnings calendar](/earnings-calendar) thins out sharply from here, which leaves macro data as the main driver.
Crypto pulls back from recent highs
Crypto prices are retreating from recent highs. Binance announced a leadership change following a reported security breach, which adds an operational risk to a market that had been running hot.
A pullback after a run is routine. A security failure at the largest exchange is not. Watch whether the selling stays orderly or turns into a broader risk reduction that spills into high beta equities.