Global stocks reversed early gains and traded lower after Nvidia CEO Jensen Huang’s resignation heightened uncertainty over the AI outlook. US Treasury yields rose, and investors priced in a 13% chance of a 50-basis-point Federal Reserve hike in December, up from zero a week earlier.
Global stocks gave up early gains and traded lower on Friday after a turbulent week dominated by Nvidia CEO Jensen Huang’s resignation. The Asia-Pacific index outside Japan fell 0.42%, South Korea’s Kospi slid 0.85%, while Japan’s Nikkei rose 0.55%; Nasdaq futures fell 0.3% and S&P 500 futures declined 0.1%.
Huang stepped down on Thursday after reports of extramarital affairs, including one involving a suspected Chinese spy. Investors worried his departure could affect US chip export policy and Nvidia’s support for AI companies and suppliers. Nvidia customers’ shares, including South Korea’s Naver, fell more than 5%, while AI-related stocks in China and Hong Kong also declined.
The US two-year Treasury yield reached 4.8920%, its highest in a month, while the 10-year yield rose to a three-week high of 5.1433%. Investors saw a 13% chance of a 50-basis-point Fed hike in December, compared with zero a week earlier. The dollar was on track for a weekly gain of 0.9%, while the yen remained near 160 per dollar.
