Asian stock markets moved mixed on Thursday as US technology shares came under pressure, led by Nvidia, which fell in extended trading after reports about its chief executive, Jensen Huang. The Nikkei 225 rose slightly, while the Topix gained 0.62 percent. The Kospi fell 0.35 percent and the Kosdaq slipped 0.66 percent, and the S&P/ASX 200 lost 0.31 percent.
Nvidia shares drop after hours
The New York Times reported that Huang was allegedly in an extramarital relationship with a company executive. The Wall Street Journal reported that Nvidia’s board was preparing to remove Huang as chief executive. Nvidia shares fell about 8 percent in US after-hours trading, and Nasdaq-100 futures dropped 1 percent. S&P 500 futures fell 0.4 percent.
The decline followed a strong prior session on Wall Street. The Dow Jones Industrial Average gained 0.5 percent, the S&P 500 rose 1.3 percent and the Nasdaq Composite climbed 1.6 percent. CoreWeave led gains after it beat earnings expectations and raised its revenue outlook.
Investors weigh AI against rates
Sameer Samana, Head of Global Equities and Real Assets at Wells Fargo Investment Institute, said investors should be somewhat cautious about the recovery. He pointed to sticky inflation, further Fed rate hikes, higher long-term rates, changes in the Washington DC configuration and regulatory demands on AI and data centers.
Callie Cox, Investment Strategy Director at Plancorp, described a fierce battle between hopes for AI and fears about interest rates and inflation. “There seems to be little room between the two, and one side may have to give way,” she said.
US data due
US figures due Thursday include initial jobless claims at 08.30 local time and existing home sales at 10.00 local time.
Related: Nvidia shares fall 8.8% after CEO affair report · US stocks mixed as chip shares recover; Nasdaq rises 1.09%
