Nasdaq 100 Futures Slip After Reports of Nvidia Board Meeting on CEO Jensen Huang
U.S. equity indexes closed higher on Wednesday, boosted by CoreWeave's outlook, while after-hours futures fell following reports that Nvidia's board is considering the removal of CEO Jensen Huang.
U.S. stock markets ended the day in positive territory on Wednesday, with the S&P 500 up 1.3%, the Nasdaq 100 gaining 2.3% and the Dow Jones Industrial Average rising 0.5%. CoreWeave Inc. surged 25% after the company raised its 2026 revenue guidance to $13 billion-$13.3 billion and its operating-income outlook to $1.27 billion-$1.37 billion, lifting several AI-related exchange-traded funds.
After the close, Nasdaq-100 futures fell about 1% and S&P 500 futures slipped 0.4% as reports emerged that Nvidia Corp.'s board is meeting to discuss the possible ouster of CEO Jensen Huang. The reports cite internal and federal scrutiny of Huang's personal conduct, including alleged extramarital relationships and a connection to a person described as a Chinese intelligence asset. Nvidia shares dropped 5% in after-hours trading.
"We continue to favor US large-cap stocks, which we believe offer attractive exposure to the AI theme and trade at a discount to their 10-year average forward price-to-earnings multiple," Brock Weimer of Edward Jones told Bloomberg.
"Senior House Republicans have indicated that Congress is prepared to issue subpoenas compelling Nvidia CEO Jensen Huang to testify regarding his involvement with a woman suspected of acting as a Chinese spy," a report from Fox Business noted.
Other market moves included a 5%-6% rise in semiconductor ETFs VanEck SMH and iShares SMH, and a 3% gain for Vanguard VGT. By contrast, most tech and AI-focused ETFs traded lower after the Nvidia news. Retail sentiment on Stocktwits for the SPY, QQQ and DIA symbols was reported as bearish.
In related corporate news, Capricor Therapeutics shares jumped after its third-quarter earnings call highlighted confidence in its Deramiocel trial data. SanDisk stock rose after Evercore ISI reaffirmed a bullish view on the NAND flash sector. Tesla CEO Elon Musk said production of the Cybertruck will continue through the end of summer 2027, extending the timeline previously outlined.
The market is also factoring in expectations of a Federal Reserve rate hike in December, following recent inflation data that suggested persistent price pressures.