Nvidia founder Jensen Huang ousted amid affair allegations, shares drop

investingLive Americas market news wrap: Jensen Huang ousted from Nvidia

• Anthropic IPO reportedly six times oversubscribed

Markets:

• Gold declined $112 to $3874
• US 10-year yields climbed 13 basis points to 5.12%
• WTI crude oil gained $2.47 to $89.00
• USD leads, AUD lags
• S&P 500 fell 0.3%, Nasdaq down 0.4%

Trading was dominated by events at Nvidia, where CEO and founder Jensen Huang was removed amid revelations of extramarital affairs, including one with an alleged Chinese agent. The situation appears to be a character assault, though such moves are part of corporate power struggles. The ouster was not entirely unexpected, as the Wall Street Journal had indicated late the previous day it was imminent. Shares dropped as much as 11% before recovering to close 4.5% lower, partly because earnings reports were not postponed. A search for a new CEO has begun, with Trump suggesting Tim Cook on Truth Social.

Importantly, the upheaval at Nvidia did not drag down the broader market, as stocks fluctuated and briefly moved into positive territory. This resilience was noteworthy given a sharp rise in Treasury yields, which increased 10-15 basis points across the curve. Oil contributed to higher yields after Trump stated that JD Vance would not attend the anticipated talks. Later, Iran reported strikes in a southern region, and oil ended at its daily highs.

The euro dropped to its lowest level since April 2025, driven by broad US dollar strength. Several Federal Reserve officials spoke, with the notably hawkish Hammack arguing against a 50-basis-point hike in December, advocating for a more gradual approach instead.