Nvidia faces a leadership crisis as founder Jensen Huang steps down, while rising oil prices and Treasury yields test the broader market's recent recovery.
Founder-CEO Jensen Huang, who built Nvidia into the dominant AI hardware supplier over 33 years, is resigning with CFO Colette Kress named interim CEO. The stock was already down roughly 8.4% premarket at $159.06 after losing nearly 10% across Monday and Tuesday on speculation. Leadership uncertainty at the center of the AI investment cycle is a direct negative, though Kress's decade-plus tenure and intact chip demand are partial supports.
Nasdaq-100 futures fell around 1.3% to 28,105 ahead of the US open after Huang's resignation shocked the AI industry. Higher oil, a US 10-year yield toward 5.05% and firmer Fed tightening odds add valuation headwinds for tech. However, the Nasdaq Composite had recovered about 3.6% from Friday's close to 25,466.19 by Wednesday, showing the broader rebound still had resilience.
Trump dismissed prospects for renewed negotiations with Iran, saying Washington no longer needed a deal, which cast doubt on hopes for diplomatic progress with a major oil producer. Brent traded around $93.6 per barrel, up approximately 1.3%, with WTI near $87. The move is supportive for crude, though it was relatively modest and involved no new military escalation.
The US 10-year Treasury yield rose toward 5.05%, with the two-year approaching 4.82%, as higher oil reinforced inflation concerns and CME FedWatch showed the probability of a 50bps December hike rising to 12.9%, with roughly 71% odds of at least 50bps cumulative tightening by January. The repricing was comparatively small against moves earlier in the week, capping the impact.
USD/JPY traded near 159.77 after touching approximately 159.94, its highest level in more than two months, supported by rising US yields and Fed tightening odds. However, Japan's top currency diplomat Atsushi Mimura renewed intervention warnings, invoking memories of large-scale summer intervention, which poses a direct downside risk to the pair near 160.
Nvidia shares fell 8.4% premarket to $159.06 following the resignation of founder-CEO Jensen Huang, with CFO Colette Kress named interim leader. The leadership transition, combined with rising Brent crude at $93.6 and the US 10-year yield nearing 5.05%, pressured broader markets. Despite the volatility, the Nasdaq Composite remains up 3.6% from Friday's close, showing resilience in the wider AI sector.
Its founder-CEO Jensen Huang is stepping down, and the market was already pricing that risk: the shares lost nearly 10% over Monday and Tuesday and were down about 8.4% premarket at $159.06 before the confirmation.
Possibly, if investors believe interim CEO Colette Kress can preserve the strategy and customer relationships; the article notes existing chip production schedules and demand from major tech customers could still support the industry.
Around 1.3%, to 28,105, ahead of the US opening bell on Thursday, driven mainly by Nvidia's leadership shock.
Not automatically: the Nasdaq Composite had recovered about 3.6% from Friday's close to 25,466.19 by Wednesday, as other technology companies kept the recovery alive despite Nvidia's weakness.
Trump dismissed prospects for renewed negotiations with Iran, saying the US no longer needed a deal, which reduced hopes for diplomatic progress and pushed Brent up about 1.3% to around $93.6 per barrel.
WTI hovered near $87 per barrel alongside Brent's gain.
It rose toward 5.05%, with the two-year yield approaching 4.82%, as firmer oil and higher odds of Fed tightening lifted yields.
CME FedWatch showed a 12.9% probability of a 50bps December hike and roughly a 71% chance of at least 50bps of cumulative tightening by January.
Rising US Treasury yields and increased odds of Fed tightening are supporting the dollar, pushing the pair to its highest level in more than two months near 159.94.
Japan's top currency diplomat warned against excessive yen moves, saying it is still too early to forget the large-scale intervention from the summer, so a sharp further rise carries intervention risk.