Nvidia Leadership Scandal Pulls Down U.S. Stock Futures and Hits AI Stocks

what happened

According to Dow Jones Newswires, Nvidia shares dropped sharply in after-hours trading on Thursday, and Update reported a near 7% fall in premarket trade. The Wall Street Journal reported that the company's board is preparing to remove co-founder Jensen Huang after reports of an affair with an Nvidia employee and another with an alleged Chinese spy. A decision was expected later the same day.

Nasdaq futures fell roughly 0.8% to 0.9%, S&P 500 futures lost 0.4%, and Dow Jones Industrial Average contracts were roughly flat. Asian indexes also declined, SoftBank shares lost more than 3% in Tokyo, and European chipmakers and equipment makers sold off. The continent-wide Stoxx 600 still rose 0.3% to a record high.

Elsewhere, 10-year Treasury yields neared 5%, Brent crude traded around $93 to $94 a barrel, gold slipped below $4,000 an ounce, and Bitcoin hovered near $73,500.

why it matters

The story hits the whole AI trade, with Nvidia at its center. Investors were already worried about infrastructure spending, financing and profitability for AI projects, and leadership uncertainty adds another layer. Analysts say the key question is whether demand shifts to rivals or whether AI spending itself slows.

market impact

Nasdaq futures and AI stocks: leadership uncertainty at Nvidia weighs on the tech sector.

• ▼Nasdaq futures pressure down — leadership uncertainty at Nvidia weakens appetite for tech and AI stocks
• ▼Nvidia shares pressure down — a possible change at the top of the board worries investors

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