Scott Kanowsky
6 min read
Investing.com – Futures connected to the major U.S. stock indices edge lower, with the contract linked to the tech-heavy Nasdaq leading the declines, as tremors from outgoing Nvidia CEO Jensen Huang’s resignation rattle through global markets. Even as investors fret over the future of Nvidia, Cisco Systems and Applied Materials provide upbeat outlooks that underscore the strength of artificial intelligence demand. Microsoft said it was still working to fix its Outlook and Teams services, while gold bounces from a 13-month low.
1. Futures dip amid Huang resignation fallout
U.S. stock futures were mostly lower on Friday. By 03:01 ET (08:01 GMT), Nasdaq 100 futures had fallen by 74 points, or 0.3%, while S&P 500 futures had ticked down by 5 points, or 0.1%, and Dow futures were mostly unchanged.
Call it key man risk. Nvidia shares slumped on Thursday after Huang, the rockstar executive who helmed the company’s meteoric rise to the center of the artificial intelligence boom, was ousted following reports that he had multiple extramarital affairs, including one with an alleged Chinese spy and another with an employee.
Although Nvidia pared back much deeper losses earlier in the session, the stock dipped by more than 4%, meaning that it has now shed the better part of a trillion dollars in value this month alone.
Analysts were scrambling to assess how Nvidia will recover after Huang’s departure, with many fretting over a lack of top-level succession planning at a company that both designs cutting-edge chips needed in AI systems and functions as a kind of central bank backstopping its own customers.
U.S. lawmakers have also indicated that they will be starting investigations into Huang’s relationship with companies reportedly involved in smuggling Nvidia’s high-end processors into China despite stringent U.S. export rules. For example, Senate Banking Committee Chairman Tim Scott has sent separate letters to Huang and Commerce Secretary Howard Lutnick requesting that both men testify before lawmakers in December, Politico reported.
Meanwhile, Nvidia has started a search for Huang’s replacement, with President Donald Trump floating former Apple head Tim Cook as a possible candidate for the job. But for now CFO Colette Kress is being tasked with steadying the ship on an interim basis. Kress will need to get her feet under her soon: Nvidia is due to report its latest quarterly returns next week.
