Nasdaq-100 futures slide, dragged lower as Nvidia sell-off resumes: Live updates

Nasdaq-100 futures experienced a decline on Wednesday evening, primarily influenced by a drop in Nvidia's stock following reports that the company's board is considering replacing CEO Jensen Huang. Futures linked to the Nasdaq-100 fell by 0.8%, while S&P 500 futures decreased by 0.4%. In contrast, futures for the Dow Jones Industrial Average remained relatively stable.

On Thursday, Japan's Nikkei 225 saw slight gains amid volatile trading. South Korea's Kospi, which features significant contributions from Nvidia suppliers Samsung and SK Hynix, dropped by 0.35%. The Hang Seng index in Hong Kong fell by 1.03%, whereas China's CSI 300 index remained largely unchanged. Australia’s S&P/ASX 200 also saw a decrease of 0.31%.

In after-hours trading in the U.S., Nvidia's stock continued to decline following a report from The New York Times indicating that Huang was involved in an extramarital affair with a company executive. Additionally, The Wall Street Journal reported that Nvidia's board is preparing to take steps to remove Huang from his position. By the latest reports, Nvidia's shares were down approximately 8%.

During regular trading hours, the Dow Jones Industrial Average increased by nearly 255 points, or 0.5%, while the S&P 500 rose by 1.3%, and the Nasdaq Composite surged by 1.6%. These gains were largely attributed to a strong post-earnings performance from CoreWeave and a rebound in Nvidia's stock prior to the news of the CEO’s potential ousting.

Investors are currently assessing whether the rally fueled by artificial intelligence (AI) has the potential for further growth, particularly in light of Nvidia's recent struggles. CoreWeave's unexpectedly positive earnings report and its increased revenue forecast have bolstered the long-term growth narrative as the market heads into Thursday's trading.

The excitement surrounding AI continues to influence market dynamics, especially with Anthropic’s upcoming initial public offering (IPO) adding further momentum. However, Sameer Samana, who leads global equities and real assets at Wells Fargo Investment Institute, cautions that macroeconomic and policy risks necessitate a selective investment approach rather than a blind pursuit of performance. He noted, "We would be a little circumspect about the bounce-back as there are some things changing at the margin, like stubborn inflation, more Fed rate hikes, higher long-term interest rates, changes in Washington D.C., and demands for AI/data center regulation."

Callie Cox, the director of investment strategy at Plancorp, echoed similar sentiments, suggesting that the ongoing tension between optimism surrounding AI and concerns over macroeconomic factors could continue to impact market sentiment. "Lately, the stock market has been locked in a fierce battle between the hope of AI and the fear around interest rates and inflation. There doesn't seem to be much in between, and something may have to give," she stated.

As investors navigate these complexities, they are closely monitoring upcoming economic data for additional insights into inflation trends, labor market conditions, and the overall economic outlook. On Thursday, initial jobless claims data will be released at 8:30 a.m. ET, followed by existing home sales figures at 10 a.m.