Global equity markets experienced heightened volatility following the removal of Jensen Huang as Chief Executive Officer at Nvidia, a US-based technology giant specializing in graphics processing units and AI computing. Investors assessed how this leadership transition could impact technology stocks, while also focusing on the upcoming US producer price index release at 16:30, looking for clues on the Federal Reserve’s pace of future rate hikes.
Stock and futures markets struggle for direction
US S&P 500 futures fluctuated, moving between gains and losses, while Nasdaq 100 futures edged down by 0.2%. European equity futures pointed to a weaker open, with losses anticipated across major continental indices. In Asia, stock markets initially climbed as much as 1.1% in morning trade, but later turned negative and dropped 0.3%.
Nvidia CEO change and strong demand for Anthropic IPO
Nvidia’s shares sank by more than 14% on Thursday after the leadership shake-up. However, subsequent buying reduced the loss to 4.3% at the close. The company named Colette Kress, its long-serving Chief Financial Officer, as interim CEO, and confirmed that Huang would cut all ties with the company. Nvidia is scheduled to announce its third-quarter financial results on Tuesday.
Sources familiar with the matter reported that artificial intelligence firm Anthropic attracted demand almost six times the number of shares available in its planned initial public offering. The transaction could become one of the largest stock listings in history.
Mini dictionary: Anthropic is a US-based artificial intelligence research company, recognized for developing advanced AI models focused on safety and reliability in digital assistants.
Bond yields surge, dollar strengthens against yen
Expectations of more aggressive rate hikes from the Federal Reserve contributed to notable gains in government bond yields in the US, Japan, and Australia following heavy selling on Thursday. New York Federal Reserve President John Williams remarked that inflation remains elevated and additional policy measures may be necessary to contain price pressures.
For the first time since September, the dollar briefly broke above 160 yen. Japanese Finance Minister Katayama stated that Japan would cooperate closely with Washington and respond as needed to rapid, one-sided movements in the currency market.
US Treasury Secretary Bessent said she wanted to see if Democrats were serious about reducing public debt. She also indicated the administration was open to addressing what she described as “tax loopholes” as part of a possible budget deal to reduce the fiscal deficit.
Bitcoin tumbles, Brent crude holds gains
Concerns over inflation and tighter monetary policy weighed on cryptocurrency markets, sending Bitcoin below $70,000 for the first time since August.
Brent crude traded around $95.70 per barrel, maintaining most of its 3.3% surge from Thursday. US President Donald Trump reiterated that the US is not obliged to reach an agreement with Iran, dampening market hopes for a resolution to supply disruptions from the ongoing Middle East conflict.
If US producer prices come in above expectations, markets could factor in a higher probability of faster interest rate increases by the Federal Reserve. Renewed gains in bond yields may also challenge Bitcoin’s potential to recover above $70,000.
