Written by: Chaoxiang Research
On Wednesday, U.S. stocks closed higher, with the Nasdaq up 1.6% and CoreWeave soaring nearly 25% after its earnings report, while Nvidia also rebounded during the trading session.
However, after the close, the winds changed suddenly. Media reports indicated that Nvidia's board was preparing to dismiss Jensen Huang, causing the stock price to drop over 8% in after-hours trading, with Nasdaq futures following suit and declining.
Three major indexes closed up, Nasdaq up 1.6%
The following are the trading results for Wednesday, November 11, on the East Coast. That day was Veterans Day, and stock markets were open while bond markets were closed.
The Dow Jones Industrial Average rose 254.60 points, an increase of 0.49%, closing at 52486.49 points, regaining all losses from the previous day.
The S&P 500 rose 1.31%, closing at 7619.38 points; the Nasdaq increased by 1.60%, closing at 25466.19 points.
| Index | Closing Level | Change |
|---|---|---|
| Dow Jones | 52486.49 | +0.49% |
| S&P 500 | 7619.38 | +1.31% |
| Nasdaq | 25466.19 | +1.60% |
According to the Associated Press, the S&P 500 is just 2.6% away from the historic high set in October, and last week's AI sell-off losses have mostly been recovered. The Nasdaq has regained all losses since the election.
The fear index VIX fell by 10.17%, reporting at 17.48.
Among the Dow components, Caterpillar rose by 2.91%, Cisco increased by 2.66%; McDonald's fell by 2.61%, Microsoft dropped by 2.26%, and Amazon declined by 1.74%.
CoreWeave surges 24.7%, storage stocks lead
CoreWeave closed up 24.71%, at $60.77.
The company reported third-quarter revenue of $3.66 billion on Tuesday after hours, compared to $1.37 billion in the same period last year, exceeding market expectations of $3.55 billion.
The full-year revenue guidance was raised to $13 billion to $13.3 billion, from a previous forecast of $12.4 billion to $13.2 billion.
Storage and hardware stocks strengthened simultaneously. Micron rose by 11.89%, closing at $811.30; Dell increased by 11.75%, and Seagate rose by 9.99%.
Nvidia rebounds during trading but drops over 8% after hours
Nvidia's regular trading session closed up about 2.9%, at $173.73. The stock price had dropped nearly 10% over the previous two trading days.
After the close, The New York Times reported that Jensen Huang was involved in an extramarital affair with the company's Vice President of Medical Business Kimberly Powell. Minutes later, The Wall Street Journal reported that the board was preparing to dismiss Jensen Huang.
Reuters cited informed sources saying that the board met on Wednesday to decide whether to let Jensen Huang step down. As of the time of publication, there were no reports of a final decision.
After hours, Nvidia's stock price dropped over 8%. According to Reuters' statistics, considering the after-hours drop, Nvidia has lost about $600 billion in market value this week.
Competitors moved in the opposite direction, with AMD rising about 4% after hours, and Broadcom increasing by about 3%.
Jensen Huang, 63, holds approximately 3.6% of Nvidia's shares, and the company does not have a clear successor.
Interest rate hike expectations remain, oil prices rebound
The October CPI released on Tuesday exceeded expectations. Sharecast reported that market expectations for a 25 basis point rate hike at the next Federal Reserve meeting have risen to about 90%.
Data from the Mortgage Bankers Association showed that as of the week ending November 6, mortgage applications increased by 6.2% week-over-week.
Oil prices stopped falling and rebounded. Brent crude rose by 1.39%, with a settlement price of $92.76 per barrel; WTI crude increased by 0.57%, settling at $86.53 per barrel.
Iranian security officials stated that no enriched nuclear material would leave the country, raising supply concerns again. Since November, Brent has declined by about 21%, and WTI has fallen by about 17%.
As of Wednesday evening, Nasdaq 100 futures were down 1%, S&P 500 futures were down 0.4%, and Dow futures were basically flat.
Today's Focus
The following are all in Beijing time.
Nvidia Board Decision: There is still no outcome on Jensen Huang's status, and news around the opening on Thursday may lead the technology stocks.
Thursday 21:30: Initial claims for unemployment benefits. At 23:00, October existing home sales will also be released.
After hours on Thursday: Cisco and Applied Materials will release earnings reports.
Friday 21:30: U.S. October PPI.
November 17: Nvidia will release the third-quarter earnings report.
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