AI summary
Summary of article:
US stocks weakened in early trading on the resignation of former Huawei CEO Jen-Hsun Huang and rising market concerns, with the Fed falling the most. However, although inflation data has cooled, the Federal Reserve is still almost certain to raise interest rates in December.
US stocks opened higher and lower in early trading on the 13th.Huida (NVIDIA ) The stock price changed from red to black, denoting the former CEOJen-Hsun Huang Due to the affair scandal, the shadow of his resignation is constantly looming.
The S&P 500 index and the Nasdaq index fell 0.1% and 0.4%, respectively, to their lowest in early trading. The Philadelphia Semiconductor Index also extended its decline, falling nearly 3%, and TSMC ADRs fell 1.3%. There has been a surge in AMD in the last few days. The Dow Jones Industrial Average rose 0.2%.
Huida’s former CEO Jen-Hsun Huang resigned on the 12th due to a series of extramarital affairs. One of his targets was Huang Le, who was accused of being a spy. Huida’s share price was originally expected to escape the fog of uncertainty with Huang Renxun’s resignation, but it turned negative in early trading and is currently down 2%.
However, Xia Ban, senior reporter at Yahoo Finance, said that if Huida and the entire AI concept stock can successfully survive this storm, it could be a big win for the company and the entire industry.
He said, “In a world without Jen-Hsun Huang, the cult of personality for visionary founders will collapse, and only numbers and logic will really matter. If these numbers are still attractive and the investment reasons are still solid, then the fundamentals of AI concept stocks will become more solid.”
The US producer price index (PPI) rose 0.3% monthly and 6.5% annually in October, below market expectations, indicating that inflation pressures have eased. However, given that the annual growth rate is still equal to 6.5%, the Federal Reserve (Fed) is almost certain to raise interest rates in December.
There was not much change in international oil prices on the 13th. West Texas Intermediate crude oil futures remained above US$88 a barrel, while Brent crude oil futures were steady at US$96.
Summary FAQ
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The main reason is that after former Huida CEO Huang Renxun resigned due to the affair scandal, the market still had doubts about the corporate governance and prospects of AI concept stocks, causing Huida’s stock price to decline and the S&P 500 and Nasdaq to fall.
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The S&P 500 fell 0.1% in early trading, the Nasdaq fell 0.4%, the Philadelphia Semiconductor Index fell nearly 3%, TSMC ADR fell 1.3%, and the Dow Jones bucked the trend and rose 0.2%, showing that technology and semiconductors were under the most pressure.
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In October, PPI increased by 0.3% monthly and 6.5% annually, which was less than expected, indicating that inflation has eased slightly, but the annual growth rate is still high, making an interest rate hike in December almost certain. At the same time, oil prices have not changed much and overall inflation pressures have not been completely relieved.
