Nvidia Lost Its Founder and 13.1% by the Open. By the Close, 4.3%.

Nvidia Lost Its Founder and 13.1% by the Open. By the Close, 4.3%. Jensen Huang resigned 37 minutes before the bell; the 2-year yield rose 13bp to 4.86%

Nvidia’s founder resigned at breakfast. The 8-K was accepted at 13:52 UTC, 37 minutes before the cash open: Jensen Huang out as president, chief executive and director with immediate effect, a search inside and outside the company, and no reason given. Finance chief Colette Kress becomes interim chief executive and keeps the finance job, so expense approvals should at least be quick.

Reuters reported that the resignation followed an alleged affair with a Megaspeed executive whom US authorities suspect of spying for Beijing. China denies it. The Justice Department says it has reached no conclusion.

The market had 37 minutes to form a view, and formed a large one. Nvidia opened at $151.01, down 13.08%, and touched $148.80. Then it spent the session revising. It closed at $166.19, down 4.34%, having won back two-thirds of the opening loss on 2.2 times Wednesday’s volume. Next door, AMD rose 5.86% and Broadcom 5.54%, and the chip fund SOXX finished down only 0.26%. The family business had a bad day; the cousins did fine.

The indices told a quieter story than the room. The S&P 500 opened 0.90% lower and closed down 0.35% at 7,592.40; the Nasdaq 100 fell 0.30% and the Russell 2000 1.66%. On the NYSE, 2,143 issues fell and 583 rose. The headline number had better manners than the room.

Three things landed before the S&P 500’s 0.90% gap: the 13:30 UTC jobless claims, Nvidia’s filing and the first remarks from Cleveland Fed president Beth Hammack. One company is never an index cause in this book, the claims print cannot be sized without a forecast this book holds, and which headline moved which leg is not stamped, so no single headline is named for the index.

The bond market came back from Veterans Day in a mood. The 2-year Treasury yield rose 13bp to 4.86% and the 10-year 12bp to 5.10%. Hammack said rates need to move higher, Chicago’s Goolsbee that inflation is heading the wrong way, and San Francisco’s Daly that more tightening is needed. Three Fed presidents agreeing in one day is a news event in itself. Every tenor rose; the 30-year added 8bp.

Spot gold fell 2.79% on a day the VIX rose 6.92% to 18.70. This book holds no stamped cause for that, or for bitcoin’s 6.60% overnight slide. Nobody has told gold what it is for.

Three calls from this book came due. Wednesday’s edition said, in two separate entries, that the 2-year would print above about 4.65% on Thursday; it printed 4.86%. Thursday’s edition said CoreWeave would keep at least half of its $12.04 gain, a close above $54.75. CoreWeave fell 6.86% and closed at $56.60, clear by $1.85. All three marked hits, taking the record to 22 hits, 7 misses and 2 splits.

Today brings producer prices at 13:30 UTC. Tuesday brings Nvidia’s results at 21:20 UTC, prepared under the man who left and presented by the woman who replaced him.

The One That Mattered

Two-thirds. Nvidia opened 13.08% down on a resignation with no stated reason and closed 4.34% down, recovering two-thirds of the gap by the 16:00 close. By the close the market had decided that losing the man who built the company cost about a third of what it had decided at 09:30. The hours in between brought downgrades and opinions rather than new numbers from Nvidia. Either the market is pricing a company that runs without its founder, or it bought a dip before reading the footnotes. Tuesday’s outlook will be the first document to say which.

Hot News: Nvidia’s Chief Executive Resigns

One founder out, one curve up, one oil price back over $95

Nvidia. Day one. Overnight, three House committee chairs set transcribed interviews for Huang on 1 Dec and for general counsel Tim Teter on 2 Dec, with subpoenas if they decline, and the Senate Banking chair asked Huang and Commerce Secretary Lutnick to testify. Reuters reported a third alleged relationship. Malaysia’s trade ministry opened a probe into chip re-exports by a Megaspeed affiliate, and Chinese AI shares fell on Friday, and Nvidia itself was 0.97% higher in after-hours trading on Thursday evening. Not yet known: the permanent chief executive, a stated reason, and whether Huang appears before Congress. The China chips inquiry this book had been tracking since 9 Nov is now part of this story.

Fed hike bets. The 2-year’s 13bp rise came with three Fed presidents leaning toward further tightening. Reuters says futures now give a December 50bp hike a meaningful chance, up from none a week ago. Producer prices print at 13:30 UTC.

The AI trade. Nebius reported revenue of $980.8 million and a 2027 outlook of $12bn to $13bn before the bell, then fell 16.84%. CoreWeave gave back 6.86%. Cisco raised its outlook after the close.

Iran. Trump said the US does not need a deal; the Houthis claimed strikes on Saudi oil facilities. Brent January rose 3.30%. On Friday Trump said the US has secured control of Hormuz; Iran’s claim that four tankers were hit is unverified.

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Stock Market Edge

An index that lost 0.35% and a room that lost more

Premarket snapshot:

On the 07:40 to 07:45 UTC bar, read twice, December S&P 500 futures were 7,614, down 0.03% on the 16:00 ET mark, and December Nasdaq 100 futures 28,329.25, down 0.21%. Dow futures were up 0.03% and Russell 2000 futures down 0.01%, against Thursday’s daily close. Overnight was quiet for US futures. Asia closed mixed on Dow Jones reports, with Chinese AI names lower.

Sector rotation:

Ten of 11 SPDR sector funds fell. Energy rose 1.51% on the day Brent rose 3.30%; materials fell 1.28%. Credit and duration were both sold: the high-yield fund HYG fell 0.48%, the investment-grade LQD 0.88% and the long Treasury TLT 1.48%. On Nasdaq, 3,711 issues fell and 1,197 rose.

Earnings or guidance:

Nebius fell 16.84% to $128.64 after its pre-bell report. Corteva fell 24.30% after reporting late on Wednesday, its first set of results since splitting itself in two. After Thursday’s close, Cisco beat and raised its full-year revenue outlook to $74.8bn to $75.8bn and was 0.21% lower after hours; Applied Materials, down 3.58% in the session, was 0.80% higher; Cerebras rose 18.16%.

Cross-asset nuance:

The dollar index rose 0.32% to 103.17 and the yen touched 160.05 to the dollar. December WTI settled at $88.74, up 2.55%. Spot gold closed at $3,876.62, down 2.79%. The VIX-to-VIX3M ratio rose to 0.93 and stayed in contango, and the bond volatility index MOVE rose to 98.42. Fear rose; panic did not turn up.

Crypto Market Edge

Bitcoin ranked first on the crowd boards. It ranked first going down.

Price snapshot:

CRYPTO bitcoin closed Thursday’s UTC day at $71,377.02, down 3.45%, and was $68,681.01 on the 07:35 to 07:40 UTC bar, 6.60% lower over 24 hours. Ether was $1,937.23, down 5.42% over the same stretch.

Flows and positioning:

Farside’s bitcoin page errored and its ether page was stale, so ETF flows are relays only and no figure is printed.

Leadership and rotation:

Coinbase shares fell 4.11% to $130.67. Bitcoin topped the Stocktwits crypto and all-asset boards at 07:30 UTC.

Catalysts and roadmap:

The Block blamed Nvidia turmoil and Fed jitters for the overnight slide. That is narrative, not a stamped cause. Producer prices at 13:30 UTC are the next test for anything priced off Fed expectations.

TL;DR

• Nvidia’s chief executive resigned 37 minutes before Thursday’s open. The shares opened down 13.08%, closed down 4.34%, and won back two-thirds of the gap.
• The S&P 500 slipped 0.35% after a 0.90% gap down, but NYSE decliners beat advancers 2,143 to 583 and the Russell 2000 fell 1.66%.
• The 2-year Treasury yield rose 13bp to 4.86% and every tenor rose. On the same day three Fed presidents leaned toward more hikes.
• Brent rose 3.30% to $95.82 on a day of Iran headlines, while spot gold fell 2.79% as the VIX rose 6.92%.
• Bitcoin fell to $68,681.01 by 07:40 UTC. Producer prices print at 13:30 UTC today; Nvidia reports on Tuesday 17 Nov at 21:20 UTC.

Named for a Goose Where Brent crude got its name

Shell named its North Sea oilfields after seabirds, in alphabetical order: Auk, Brent, Cormorant, Dunlin. Brent is the goose. The goose settled at $95.82 on Thursday.