Nvidia board meeting drags Asian markets lower
Shares of the chipmaker fell 8.6% in after-hours trading as its board convened to discuss CEO Jensen Huang, while Wall Street indices rebounded the previous day.
By Lorenzo Patterson ·
U.S. equity futures and Asian stock indices declined on Thursday as investors reacted to developments at Nvidia. The drop followed reports that the company's board of directors held a late Wednesday meeting to address the status of CEO Jensen Huang.
After-hours trading saw Nvidia shares lose 8.6 percent. The board convened to discuss concerns surrounding Huang, who admitted to a relationship with a Chinese businesswoman. Reports indicate that this individual allegedly provided intelligence and advanced chips to China, raising national security questions in the United States.
Nvidia had seen a 2.9 percent gain on Wednesday before the news of the board meeting emerged. The company stated it is investigating Huang's conduct.
Across Asia, the Nikkei 225 index in Japan fell 0.7 percent to close at 60,798.84. South Korea's Kospi index reversed early gains to drop 0.2 percent, ending at 5,364.26. Taiwan's Taiex index suffered the steepest loss in the region, declining 2.6 percent.
Other markets also slipped. Australia's S&P/ASX 200 index lost nearly 0.1 percent to reach 9,146.80. In East Asia, Hong Kong's Hang Seng index dropped 1.2 percent to 24,034.38, and the Shanghai Composite fell 0.6 percent to 3,657.03.
Wednesday brought a sharp rebound in U.S. markets. The S&P 500 rose 1.3 percent, nearly erasing the losses from the previous week's sell-off driven by fears of an AI industry slowdown. The index now sits within 2.6 percent of its all-time high set last month. The Nasdaq composite gained 1.6 percent, leading major benchmarks, while the Dow Jones Industrial Average added 254 points, or 0.5 percent.
CoreWeave led the Wednesday rally, with shares jumping 24.7 percent after the cloud provider reported smaller summer losses than analysts predicted. Despite the recent gains, investors remain cautious about the profitability of AI businesses. U.S. crude oil prices fell slightly on Thursday, with benchmark crude dropping 0.28 percent to $86.29 a barrel and Brent crude losing 0.27 percent to $92.51 a barrel.
Currency markets showed minor shifts as well. The U.S. dollar weakened slightly against the yen, trading at 159.78 yen, down from 159.79. The euro also declined, costing $1.1080, a decrease from $1.1091. The U.S. bond market remained closed on Wednesday for Veterans Day.
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