Nvidia shares and those of its customers tumbled after Jensen Huang's admission of an affair, while US lawmakers signalled tighter scrutiny and potential limits on chip exports to China. Markets also weighed expectations for a possible 50-basis-point Federal Reserve rate hike next month.
Nvidia's crisis reverberated across markets this week after longtime figurehead Jensen Huang admitted to an affair. The article says Nvidia shares and those of its customers fell, while copper prices also slumped as traders questioned demand for physical AI infrastructure.
US House Speaker Mike Johnson signalled growing congressional support for limiting chip exports to China. Senate Banking Committee Chairman Tim Scott asked Commerce Secretary Howard Lutnick and Huang to testify, while senior White House officials discussed whether Lutnick should be pushed out.
The dollar held near a 19-month high and was on track for its largest weekly gain in over a month as investors considered the prospect of a 50-basis-point Fed rate hike next month. US two-year and 10-year Treasury yields reached multi-week highs in Asia. The yen briefly crossed 160 per dollar; Japan's Finance Minister Satsuki Katayama said the government would respond appropriately to currency volatility. The New York Fed said the US Treasury bought 79.4 billion yen in the spot market on July 31, selling euros from the Exchange Stabilization Fund.
