Major indices are modestly higher at midday, with the exception of the Russell 2000, after recovering from an early decline tied to Jensen Huang’s resignation as Nvidia (NVDA) CEO. The 10-year Treasury yield is back above 5%, and gold is down about 3%.

Rival chipmakers are helping offset Nvidia’s drop and leading the S&P 500 higher.

We may be burying the lede for investors. Maybe this is the end of the capitulation period that has haunted this market for a couple of weeks before culminating in a horrific slide last Thursday (arrow).

Under the hood, seven of eleven sectors are in the green, led by Energy (XLE), where refiners are driving a rebound in the year’s best-performing sector after a rough start to November, with oil also modestly higher. Communication Services (XLC) and Consumer Discretionary (XLY) follow, with Alphabet (GOOGL) and Amazon (AMZN), which both design their own AI chips, rising alongside other Nvidia rivals. Defensive groups are in the green as well, with Utilities (XLU), Consumer Staples (XLP), and Health Care (XLV) higher as investors rotate toward traditional risk-off sectors.

On the other hand, Materials (XLB) is the worst performer as gold and silver miners slide with precious metals prices, which are falling as the dollar firms and Treasury yields climb. Technology (XLK) is slightly lower as Nvidia’s slide outweighs gains in rival chipmakers, while rate-sensitive Real Estate (XLRE) slips as yields rise.

Nvidia’s Shake-Up

By now, it is known that Jensen Huang is out as CEO of Nvidia (NVDA), in the wake of admitting to an extramarital affair with a woman who turned out to be a Chinese spy, and new stories of an affair with an NVDA executive who directly reports to him.

It’s been a horrifying five weeks for NVDA, the company that’s powered the AI revolution.

The stock hit its lowest level since June 2025 at the open this morning before recovering a good chunk of the decline.

Of course, Jensen and NVDA are such integral parts of the AI story that there are many questions to ask and answer.

But for now, it looks like the market is separating the heartbreaking story of the fall of an American icon from the fall of the AI revolution he helped bring to life.

NVDA has named Colette Kress as interim CEO – she was formerly the finance chief, where, according to reports, she sometimes pushed back on the investment deals that Jensen championed.

As for a permanent replacement, President Trump said former Apple (AAPL) CEO Tim Cook should take the job, and tech analyst Dan Ives called Cook the top candidate.

Huang has also agreed to testify behind closed doors before House lawmakers by Thanksgiving, after they threatened to subpoena him.

Super Micro (SMCI) is also lower after a report that federal prosecutors in Manhattan are investigating whether entities tied to Alice Huang, the woman at the center of the scandal, helped smuggle Super Micro products into China. The company is not a defendant and says it is cooperating.

Economic Data

Existing home sales fell 5.5% in October to a seasonally adjusted annual rate of 3.75 million, the lowest level since August 2010, and are down 8.8% from a year ago. The median existing-home price rose 0.4% from a year ago to $416,700, its 40th straight annual gain, while inventory climbed to 1.59 million homes, or 5.1 months’ supply, as the average 30-year mortgage rate rose to 7.33% from 6.86% in September.

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.