[New York Stock Market] All indexes rise as oil prices fall... Nvidia plunges 4%

Jensen Huang Faces Board Investigation

Buoyed by a drop in international oil prices, all three major indexes on the New York Stock Exchange were rising on November 9 (local time). Buying was flowing into stocks related to artificial intelligence (AI), which had plunged last week. Nvidia, however, was tumbling on news of a board investigation into CEO Jensen Huang.

As of 10:18 a.m. on the New York Stock Exchange, the Dow Jones Industrial Average was up 796.22 points, or 1.55%, from the previous trading session, at 52,081.95. The S&P 500, which is weighted toward large-cap stocks, had gained 134.53 points, or 1.82%, to 7,511.39, while the Nasdaq Composite, which is weighted toward technology stocks, was up 557.96 points, or 2.32%, at 25,137.39.

Investor sentiment improved as international oil prices fell sharply. West Texas Intermediate (WTI) crude for December delivery fell 3.26% from the previous session to $87.87 a barrel on the New York Mercantile Exchange. Brent crude for January delivery was down 3.86% to $94.43 a barrel on the ICE Futures Exchange. The decline in oil prices was attributed to progress in diplomatic efforts to end the war with Iran.

AI-related stocks, which plunged last week, were also rebounding. On November 5, the New York stock market tumbled after concerns spread that regulations on AI data centers could be tightened following a landslide victory by the Democratic Party in the U.S. midterm elections. Investors are concerned that stricter rules on data center construction and energy use could curb expanded investment in AI infrastructure.

Shares of major semiconductor companies were generally higher that day. Broadcom and AMD rose 7.95% and 9.58%, respectively, while onsemi gained 7.34%. Among major technology stocks, Amazon was up 4.11%, while Tesla and Alphabet rose 5.57% and 3.24%, respectively. Microsoft (MS) also gained 1.99%.

Nvidia, by contrast, plunged 3.89%. News that the Nvidia board had launched an investigation into CEO Huang's relationship with a businesswoman suspected of being a spy for Chinese intelligence services weighed on the stock. U.S. intelligence agencies suspect that the woman gathered information for China.

However, these allegations have not been confirmed. The Nvidia board is investigating whether there was an attempt by a foreign intelligence agency to gain access, among other matters. The board's position is that, to date, there is no basis to conclude that national security or company secrets have been compromised.

Liz Ann Sonders, chief investment strategist at Charles Schwab, told CNBC that "individual investors are not using stock price declines as buying opportunities, unlike in the past," adding that "selling pressure may not have fully eased." She forecast that companies' decisions on whether to adjust their capital expenditure (CAPEX) plans and their profit margin outlooks would be key short-term drivers of the stock market.

Key inflation indicators are also due. The U.S. Consumer Price Index (CPI) will be released on November 10, followed by the Producer Price Index (PPI) on November 13. The market is expected to assess inflation trends and their implications for the Federal Reserve's future interest rate decisions.

This content was produced with the assistance of AI translation services.