Nvidia falls nearly 5% before the open on a probe of CEO Jensen Huang
Nvidia's board is investigating Huang over his affair with an alleged Chinese spy, while stock futures claw back some of last week's losses and oil drops on US-Iran talks
Key takeaways
Nvidia shares were down 4.8% in premarket trading Monday, CNBC reported, after the company's board opened an investigation into CEO Jensen Huang. US stock futures were higher.
As of 7 a.m. ET, Dow futures were up 0.9%, S&P 500 futures 0.6% and Nasdaq-100 futures 0.5% despite the drag coming from the world's biggest chip maker.
The rise follows a losing week that saw the Nasdaq Composite fall 3.4%, the S&P 500 drop 2.7%, and the Dow Jones Industrial Average slide 0.9% from the Oct. 30 close to the Nov. 6 close, CNBC reported.
Heavy selling in the tech sector was reflected in the Invesco QQQ Trust, Series 1, QQQ, which tracks the Nasdaq-100, and fell 5% over the week.
QQQ led the week's slide, finishing nearly 5% lower
- QQQ · 95.02
- SPY · 97.3
- DIA · 99.05
Nvidia board says Huang "committed" to remaining CEO
On Sunday, Nvidia's board said it was starting an independent investigation "in light of recent reporting" that Huang "has been the target of a foreign intelligence effort."
CNBC reported that US intelligence assessed China's Ministry of State Security had recruited a woman named Alice Huang, an executive at the Singapore technology company Megaspeed, to gather information on him. The New York Times first reported that assessment, CNBC said.
In a memo to staff on Sunday, Huang disclosed that he had been intimate with Alice Huang, CNBC reported.
"I was unfaithful to my wife," he wrote. "My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."
The board said it had "no reason to believe that either national security or NVIDIA secrets were compromised." Nvidia told CNBC that Huang "is committed to continuing to lead NVIDIA as CEO without interruption."
Oil falls as talks aim to reopen the Strait of Hormuz
US crude was down 2.8% at $88.33 as of 7:09 a.m. ET. Brent, the international benchmark, was down 3.4% at $95.02.
CNBC reported that oil fell after President Donald Trump said Sunday that renewed strikes on Iran were "highly unlikely" if talks produced a strong agreement on Iran's nuclear program and reopening the Strait of Hormuz. The war has lasted more than eight months.
US Secretary of State Marco Rubio, speaking Sunday evening, was less encouraging about those talks.
"I wouldn't say we're on the verge of a breakthrough," Rubio said, calling some Iranian demands "outrageous and ridiculous."
A strong jobs report raised the odds of a December rate increase
On Friday, the US Bureau of Labor Statistics said US employers added 165,000 jobs in October, more than twice the 65,000 that economists polled by Reuters had expected. Unemployment was 4.1%.
Reuters reported that markets were pricing in an 80% chance of a quarter-point rate increase at the Federal Reserve's Dec. 8-9 meeting after the data, up from about 67% on Thursday.
The decision will be informed by the October prices report, which the Bureau of Labor Statistics (BLS) is due to release at 8:30 a.m. ET on Tuesday. The BLS has said it will not publish 12-month changes for most series because it could not collect October 2025 prices during the government shutdown.
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