Key Takeaways
- • Nvidia's board announced on Sunday it is investigating co-founder and CEO Jensen Huang over his relationship with an alleged Chinese spy, and NVDA shares fell more than 5% in pre-market trading.
- • Huang told employees in an email, "I was unfaithful to my wife... There is no excuse for what I did. I am deeply sorry."
- • U.S. stock futures rose Monday, with the Dow up 0.70% and the S&P 500 up 0.33% in the pre-market, after a volatile week for Big Tech.
- • The 10-year Treasury yielded 4.864% and the two-year 4.53%, while CME FedWatch showed an 80.5% probability of a Federal Reserve rate hike at the December meeting.
- • Investors face a busy week led by the October CPI report on Tuesday, with Occidental Petroleum and Constellation Energy also reporting earnings.
Summary
U.S. stock futures rose on Monday as the Dow Jones and S&P 500 advanced, following a mixed close on Friday that capped a volatile week for Big Tech. The gains came despite a sell-off in Nvidia Corp. (NVDA) after its board announced on Sunday that it was launching an investigation into co-founder and CEO Jensen Huang over his relationship with an alleged Chinese spy, according to the report. In an email to employees, Huang wrote: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry." Yorkville Ives partner Dan Ives called the affair a "black eye moment" for Nvidia and warned that the issue could create fresh uncertainty for the chipmaker and its investors.
In premarket trading, the Dow Jones gained 0.70%, the S&P 500 rose 0.33%, the Nasdaq 100 added 0.01%, and the Russell 2000 advanced 1.05%. SPDR S&P 500 ETF Trust (SPY) was up 0.31% at $733.67, and Invesco QQQ Trust (QQQ) rose 0.03% to $656.32. On Friday, the Dow fell 0.46% to 51,285.73, while the S&P 500 gained 0.31% to 7,376.86 and the Nasdaq Composite rose 1.09% to 24,579.42.
Fixed income markets priced in tighter policy. The 10-year Treasury yielded 4.864% and the two-year 4.53%. CME Group's FedWatch tool implied an 80.5% likelihood of a Federal Reserve rate hike at its December meeting. Schwab Center for Financial Research said investors would seek stability after last week's turbulence, with October's Consumer Price Index due Tuesday at 8:30 a.m. ET. Collin Martin, head of fixed income research and strategy at SCFR, said demand for Treasuries has generally held up given the relative attractiveness of current yields.
In commodities and crypto, WTI crude traded 0.4% lower near $90.47 per barrel, gold spot rose 0.7% to about $4,098.72 per ounce, and the U.S. Dollar Index fell 0.46% to 101.83. Bitcoin traded at $74,110, down 2.3% over 24 hours. Asian markets closed mostly higher, while European markets were mostly higher in early trade.
Company-specific items include Occidental Petroleum (OXY), up more than 1% premarket ahead of earnings expected at $1.46 per share on $6.79 billion in revenue. Constellation Energy (CEG) is expected to report earnings of $3.85 per share on $9.37 billion in revenue, and Lucid Group (LCID) shares fell 1.2% premarket ahead of results. AST SpaceMobile (ASTS) was up 0.4% premarket ahead of its report.
In premarket trading, the Dow Jones gained 0.70%, the S&P 500 rose 0.33%, the Nasdaq 100 added 0.01%, and the Russell 2000 advanced 1.05%. SPDR S&P 500 ETF Trust (SPY) was up 0.31% at $733.67, and Invesco QQQ Trust (QQQ) rose 0.03% to $656.32. On Friday, the Dow fell 0.46% to 51,285.73, while the S&P 500 gained 0.31% to 7,376.86 and the Nasdaq Composite rose 1.09% to 24,579.42.
Fixed income markets priced in tighter policy. The 10-year Treasury yielded 4.864% and the two-year 4.53%. CME Group's FedWatch tool implied an 80.5% likelihood of a Federal Reserve rate hike at its December meeting. Schwab Center for Financial Research said investors would seek stability after last week's turbulence, with October's Consumer Price Index due Tuesday at 8:30 a.m. ET. Collin Martin, head of fixed income research and strategy at SCFR, said demand for Treasuries has generally held up given the relative attractiveness of current yields.
In commodities and crypto, WTI crude traded 0.4% lower near $90.47 per barrel, gold spot rose 0.7% to about $4,098.72 per ounce, and the U.S. Dollar Index fell 0.46% to 101.83. Bitcoin traded at $74,110, down 2.3% over 24 hours. Asian markets closed mostly higher, while European markets were mostly higher in early trade.
Company-specific items include Occidental Petroleum (OXY), up more than 1% premarket ahead of earnings expected at $1.46 per share on $6.79 billion in revenue. Constellation Energy (CEG) is expected to report earnings of $3.85 per share on $9.37 billion in revenue, and Lucid Group (LCID) shares fell 1.2% premarket ahead of results. AST SpaceMobile (ASTS) was up 0.4% premarket ahead of its report.
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