Nvidia falls as board probes reports Huang was spy target

US stock index futures edged higher early Monday, November 9, as investors bought shares after last week's steep slide. Nvidia fell sharply before the open, though, which kept investors on edge. Dow e-minis led the gains while Nasdaq 100 futures lagged, Reuters reported. Investors are waiting for more clarity on the controversy around Nvidia CEO Jensen Huang.finance.yahoo.com

Global stocks also moved up from six-month lows, but the mood stayed fragile. MSCI's World Stock Index gained modestly and Japan's Nikkei 225 rose more than 2%, according to Reuters. Taiwan's benchmark rebounded after its steepest weekly drop in two decades.fidelity.com

Nvidia probe weighs on tech

Nvidia shares fell more than 4% in premarket trading after its board opened an inquiry into whether Huang had been the target of a foreign espionage effort. The probe followed reports of his relationship with an executive whom US officials believe passed information to Chinese intelligence, Dow Jones reported. The board said it had no reason to believe company secrets or national security were compromised, and it expressed confidence in Huang's leadership.morningstar.com

"Given Huang's central role in Nvidia's success and the wider AI investment narrative, even speculation about leadership uncertainty could unsettle investors," Daniela Hathorn of Capital.com told Reuters. Analysts at Yorkville Ives expect Huang to stay on as CEO for now. They warned, however, that the probe "will add risk to the stock".finance.yahoo.com+1

Midterms deepen AI fears

AI-related stocks dropped hard last week after Democrats won control of Congress in the midterm elections, raising fears of tighter rules on AI and data centers. The Nasdaq entered a correction as the AI trade came apart. Stocks bounced back on Friday, November 6, but the S&P 500 ↗ 0.31% still lost 2.3% for the week, the Associated Press reported. The Nasdaq 100 finished the week down 5%. The VIX rose more than 30% over the week, according to Reuters. The Philadelphia Semiconductor Index PHLX Semiconductor Index ↗ 3.91% had its biggest weekly loss since March 2025.jamaica-gleaner.com+2

Rate hike and earnings ahead

Rate worries are adding to the pressure. US employers added 165,000 jobs in October, more than twice what economists expected. After that report, markets put the odds of a Federal Reserve rate hike in December at nearly 80%, according to the CME ↘ 0.44% FedWatch Tool, Reuters reported. Consumer price data is due Tuesday. Later this week, earnings from CoreWeave ↗ 6.28%, Applied Materials ↗ 4.22% and Cisco ↗ 1.74% will test whether spending on AI is paying off.reuters.com

"The AI correction in equities could have much further to run," Thomas Mathews of Capital Economics wrote. He added that a key risk would be "any concrete sign that the hyperscalers were paring back capital expenditures".finance.yahoo.com