US stocks steadied on Monday 9 November, ending higher despite a sharp fall in Nvidia shares, after the chipmaker’s board announced an independent investigation into chief executive Jensen Huang.
Nvidia shares fell just over 4 percent in pre-market trading, according to Reuters, and were down about 5.6 percent in after-hours trading, at around $176, against Friday’s Nasdaq closing price of $186.64. In Frankfurt trading, the shares tumbled more than 6 percent, extending last week’s selloff.
At the Frankfurt levels, the chipmaker stood to lose about $270 billion from its closing price on Friday, according to LSEG Datastream, as reported by Reuters.
Suppliers rebound as Nvidia falls
Shares in Nvidia’s key Asian chip suppliers rebounded on Monday after last week’s selloff of AI-related stocks. TSMC shares jumped 6.5 percent, while Samsung Electronics and SK Hynix climbed 2.9 percent and 4.7 percent respectively, according to Reuters.
Republican lawmakers have requested a private briefing on 18 November about Nvidia’s safeguards and the reported relationship, according to reports. Nvidia’s results are scheduled for 17 November, when investors will be watching how the company frames demand and whether the rally can be sustained.
CPI on Tuesday
Traders are also looking ahead to Tuesday’s US consumer price index release, due at 08:30 ET on 10 November. The headline figure is expected to have risen by 0.3 percent on the month, with core inflation expected to come in at 0.2 percent, according to market forecasts.
Read more: Nvidia Shares Fall After Board Launches Probe Into CEO Jensen Huang Over Reported Spy Claims
Read more: Nvidia Loses $450 Billion In A Day As Chip Stocks Crash
Markets close higher despite Nvidia
By the close, Wall Street had shaken off the early weakness. The Dow Jones Industrial Average rose 1,104.02 points, or 2.15 percent, to 52,389.75. The S&P 500 climbed 2.35 percent to 7,549.94, its best day since April, according to CNBC. The Nasdaq Composite gained 2.74 percent to 25,253.14, with Broadcom, AMD and Micron among the sharpest gainers.
Nvidia was the exception. The shares closed at $178.67, down 4.27 percent on the day, according to Yahoo Finance — a smaller loss than the Frankfurt session had implied, but still the market’s standout underperformer, according to CNBC.
