Jensen Huang Debacle Weighs on Nvidia and the Market: 8 Key Items Shaping the Stock Market Thursday

Detailed summary

Nebius and Foxconn bring more AI and data center support, signs inflation pressures remain in place and other headlines moving the market this morning.

Nebius and Foxconn bring more AI and data center support, signs inflation pressures remain in place and other headlines moving the market this morning.

1. Two oil supertankers were disabled by massive explosions after they ignored warnings against using an “unauthorised route” in the Strait of Hormuz on Wednesday night, Iran’s Revolutionary Guards Navy said on Thursday. (Reuters)

While this will raise some questions about the latest round of peace talks, oil prices are lower on Thursday morning following reports that OPEC+ crude production rose in October, driven by higher Saudi Arabian output despite shipping disruptions through the strait.

As far as those peace talks go, in what we’ll call a “not very surprising” update, Iranian security chief Mohsen Rezaei said in televised remarks that Iran would not allow a single particle of enriched nuclear material to leave the country and there would be ⁠consequences if the U.S. launched new strikes. With Washington’s position being that nuclear issues must be a part of any negotiations with Iran, it would appear another stalemate is on the horizon.

2. Nvidia’s board is preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with a suspected Chinese spy and another with an employee. The board was planning to meet as soon as Wednesday to determine his future, people familiar with the matter said. (WSJ) Nvidia Corp. is searching for a replacement for larger-than-life Chief Executive Officer Jensen Huang, a daunting challenge at the world’s most valuable chipmaker. The company has tapped an outside firm to identify potential candidates following reports of multiple extramarital affairs by Huang. (Bloomberg)

These and related headlines are going to push Nvidia (NVDA) shares, which are already in an oversold condition, into an even greater one. The near-term drama and questions are simply too high, and we are already seeing some Wall Street firms cut back their price targets as they assess what we can…

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