Stocks find firmer ground but Nvidia woes pose fresh test as oil falls
SPY•World stocks edged up from six-month lows after last week’s tech-led selloff, while Nvidia shares fell just over 4% in pre-market trading. Brent crude dropped 3% to $95 a barrel as investors watched efforts to end the Iran war and awaited US inflation data.
1. Stocks recover slightly
World stocks rose modestly on Monday after last week’s tech-led rout, with MSCI’s World Stock Index up 0.5% and Asia-Pacific shares outside Japan gaining 1.25%. US stock futures recovered from early declines, while European shares rallied as bank stocks rose following a proposed merger involving Credit Agricole’s Italian subsidiary and Banco BPM.
2. Nvidia weighs on sentiment
Nvidia shares fell just over 4% in pre-market trading after an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort put his future at the AI chipmaker under scrutiny. Analysts said the drop was the latest test of investor sentiment as markets assessed the company’s importance to the AI trade.
3. Oil and rates ease
Brent crude fell 3% to $95 a barrel and US West Texas Intermediate dropped almost 3% to around $88.37. The decline in oil prices helped push down government borrowing costs, while traders priced in roughly an 80% chance of a quarter-point Federal Reserve rate hike in December ahead of US CPI data on Tuesday.
