Market Overview
Reports that Nvidia’s board was considering removing CEO Jensen Huang sent its shares lower after hours and weighed on US equity futures, overshadowing Wall Street’s gains on November 11. Asian stocks mostly fell in afternoon trading, while Australia’s S&P/ASX 200 finished 0.07% lower. The reports brought leadership risk at a company central to the artificial intelligence (AI) trade into focus.
Markets
Australian equities concluded their session marginally lower, with the S&P/ASX 200 falling 0.07% to 9,146.80. Across Asia, major indices were mostly lower during afternoon trading. South Korea’s KOSPI declined 1.25%, and Hong Kong’s Hang Seng index fell 0.82%. Japan’s Nikkei 225 was down 0.77%, while China’s Shanghai Composite slipped 0.19%. Singapore’s Straits Times Index registered a modest gain of 0.11%.
In currencies, the Australian dollar hit a 10-month low against the US dollar, falling 0.49% to US$0.6836. The US Dollar Index remained firm, up 0.07% at 102.98. Oil prices continued to drift toward a two-month low, with Brent crude futures down 1.12% at US$91.72 a barrel. US equity futures declined during the APAC session, with Nasdaq-100 futures down approximately 0.8%, pointing to a weaker opening for US markets.
What Drove Markets
The primary driver of market sentiment was reported uncertainty surrounding Nvidia CEO Jensen Huang’s leadership. Multiple media outlets indicated that Nvidia’s board was discussing Huang’s future, potentially considering an ouster, and had engaged an outside firm to identify successor candidates. Josh Gilbert, eToro lead analyst, noted that Huang has been “the voice that sells the AI story to the market each quarter,” suggesting this uncertainty is a “cloud” that has “turned into a storm” over the stock. This turmoil overshadowed a strong previous Wall Street session, which saw gains from CoreWeave’s upgraded outlook and strong demand for Anthropic’s IPO. Following reports about Nvidia’s leadership, shares of Advanced Micro Devices (AMD) and Broadcom (AVGO) rose in after-hours trading as investors speculated that the companies could gain business from Nvidia. Nvidia closed up 2.87% on November 11 at $173.73, with its reported after-hours slump on that day influencing market reaction today.
Broader macroeconomic concerns continued to influence sentiment. Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, advised investors to be “a little circumspect” due to “stubborn inflation, more Fed rate hikes, higher long-term interest rates, change in configuration in Washington DC [and] AI/data center regulation demands.” Callie Cox, director of investment strategy at Plancorp, stated that the stock market is “locked in a fierce battle between the hope of AI and the fear around interest rates and inflation.” Markets are pricing an 87.3% probability of a 25-basis-point Fed rate increase at the December 9 meeting.
Oil prices continued to fall toward a two-month low, attributed to increased Middle East production and muted hostilities between Iran and the United States.
Within the Australian market, the S&P/ASX 200 was dragged lower by a sell-off in the mining sector, with major players BHP and Rio Tinto declining 1.29% and 2.14% respectively. Technology shares found support from Xero, which was up 8.4% in afternoon trading after upgrading its guidance and announcing an A$1 billion share buyback. Banks were mixed, with ANZ declining 0.95% from profit-taking, while Commonwealth Bank and Westpac posted gains of 2.89% and 1.93% respectively.
Stocks to Watch
- Nvidia (NVDA): Reports of potential leadership changes for CEO Jensen Huang sparked significant investor uncertainty regarding the company’s future and the broader AI market. Nvidia closed 2.87% higher at $173.73 on November 11, before reports about Huang’s future triggered an after-hours sell-off that weighed on US futures and Asian technology stocks.
- Advanced Micro Devices (AMD) and Broadcom (AVGO): Both chipmakers gained in after-hours trading on November 11 following reports about Nvidia’s leadership. In the preceding regular session, AMD had closed 7.32% higher at $552.90 and Broadcom had advanced 3.99% to $345.22.
- Xero: The Australian software company was up 8.4% in afternoon trading after upgrading its guidance and announcing an A$1 billion share buyback.
- Aristocrat Leisure: The gaming company’s shares were down 3.6% in afternoon trading despite a 15% increase in full-year profit, following news that CEO Trevor Croker would step down in April 2027.
- Commonwealth Bank (CBA): Australia’s largest bank rebounded 2.89% despite news that the Australian Securities and Investments Commission (ASIC) is suing the lender. National Australia Bank (NAB) also saw a gain of 0.54%, though it was reported to be paying back over $100 million to underpaid workers.
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