Stocks Slip as Nvidia CEO Huang Resigns, Treasury Yields Climb
Nvidia CEO Jensen Huang resigned on Thursday after reports of extramarital affairs, and global stocks gave up early gains on Friday. US Treasury yields rose, the dollar gained, and traders priced in a small chance of a 50-basis-point Federal Reserve rate hike in December.
Wall Street ended lower after Nvidia CEO Jensen Huang resigned on Thursday, November 12, 2026, and global stocks gave up early gains on Friday as US Treasury yields climbed. Investors are weighing the fallout for the AI industry and a possible larger Federal Reserve rate hike.
Huang stepped down after reports of extramarital affairs, including one involving a suspected Chinese spy. The turmoil put the chipmaker in crisis and sent shockwaves through the AI sector.
His exit could have far-reaching effects on US chip export policy and the wider AI supply chain. Huang had pushed to keep access to the Chinese market and has close ties with US President Donald Trump.
Markets react
Nasdaq futures fell 0.3% and S&P 500 futures lost 0.1%. EUROSTOXX 50 and DAX futures each lost more than 0.4%, while FTSE futures eased 0.3%.
MSCI's broadest index of Asia-Pacific shares outside Japan reversed early gains and traded 0.42% lower. South Korea's Kospi slid 0.85%, while Japan's Nikkei added 0.55%.
Nvidia's customers took a hit. Shares of South Korea's Naver fell more than 5%. In China and Hong Kong, AI model developers Z.AI Co and MiniMax Group fell sharply on worries about reduced access to advanced chips.
Data centre suppliers Zhongji Innolight and Eoptolink Technology, both heavily reliant on US markets, slumped. Copper was on track for a weekly loss on fears of weaker demand, and Australian-listed Capstone Copper fell more than 5%.
"Jensen has obviously been a singular force in many ways so the impact will likely be felt far and wide," said UBS analyst Timothy Arcuri. He expects "some 'pause'" in Nvidia's willingness to keep pursuing funding deals with AI partners in the near term.
Jon Zauderer, Citi's head of specialist sales and a TMT specialist, said competitors such as AMD, Arista and Broadcom could benefit.
US Senate Banking Committee Chairman Tim Scott sent letters on Thursday to Commerce Secretary Howard Lutnick and Huang, asking them to testify over developments at Nvidia.
Yields and the Fed
The 2-year Treasury yield peaked at 4.8920% in early Asian trading, a one-month high. The 10-year yield rose to a three-week high of 5.1433%.
The CME FedWatch tool shows a 13% chance of a 50-basis-point Fed hike in December, up from zero a week ago. The dollar was on track for a weekly gain of 0.9%, its biggest in more than a month.
Manusha Samaraweera, fixed income investment director at Capital Group, said the Fed has three hikes priced in over the next 12 months. The latest consumer price index reading was hotter than expected. "If those kinds of prints continue to happen, we can definitely see the Fed hiking three more times," he said.
The stronger dollar pushed the yen close to the key 160-per-dollar level, leaving traders watching for any intervention from Tokyo.
