US Futures Slip on Hot CPI Data and Nvidia CEO Turmoil
US index futures face challenges as elevated US CPI data has increased market expectations for a December Fed rate hike to nearly 91%. Nvidia shares experienced a decline of more than 8.5% in after-hours trading, following reports of internal leadership issues and the possible ousting of CEO Jensen Huang. Regular Wednesday trading concluded on a positive note, driven by a 25% increase in CoreWeave, which propelled the Nasdaq and S&P 500 upward. Dow Jones futures remain steady around 52,580 during the European hours on Thursday. Meanwhile, S&P 500 futures have decreased by 0.43%, trading at approximately 7,610, while Nasdaq 100 futures have fallen by 0.92%, trading at around 28,210.
US equity futures encounter obstacles as hawkish sentiment regarding the Federal Reserve’s policy outlook intensifies, driven by unexpectedly high US Consumer Price Index inflation data. Traders have intensified their positions on a December rate hike following comments from Fed Governor Christopher Waller, who expressed support for a quarter-point increase, or potentially a half-point adjustment should inflation deteriorate. According to the CME FedWatch Tool, markets are currently assigning a probability of nearly 91% to a rate hike in December.
Market sentiment exhibited a cautious demeanour as Nvidia shares faced renewed selling pressure, prompted by reports suggesting potential leadership turmoil within the chipmaker. During after-hours trading, the stock tumbled more than 8.5% following a report regarding allegations of a relationship between CEO Jensen Huang and a company executive. Concurrently, source indicated that the board was preparing to remove him from his position. Given Nvidia’s central role in the AI boom, instability at the company poses a risk of triggering broader repercussions across global markets.
Earlier in the day, US equities closed Wednesday’s regular session higher, with the Nasdaq Composite and S&P 500 gaining 1.6% and 1.31%, respectively, while the Dow Jones Industrial Average advanced 0.49%. That rally was bolstered by a 25% surge in AI computing firm CoreWeave capitalised on a positive business outlook, which bolstered investor confidence in the broader AI sector. According to HSBC, activity in the US rates complex was muted midweek as “the US Treasury market was closed in observance of Veterans Day,” temporarily removing a key reference point for bond pricing and cross-asset flows.
