[New York stock market close | November 12] Rebound stops due to Jensen Huang’s resignation… Nasdaq 0.39%↓

AMD 5.86%↑·Nevius 16.84%↓… AI-related stocks are mixed.

Amid pressure from oil prices and interest rates, pay attention to producer prices on the 13th and Nvidia's performance on the 17th.

The New York stock market fell in one day. The resignation of Nvidia co-founder Jensen Huang as CEO has increased uncertainty about artificial intelligence (AI)-related stocks. Rising international oil prices due to tensions in the Middle East and rising U.S. Treasury yields also weighed on investor sentiment.

On the 12th (local time), the Dow Jones Industrial Average closed at 52,297.09, down 189.40 points (0.36%) from the previous day. The Standard & Poor's (S&P) 500 Index closed at 7592.40, down 26.98 points (0.35%), and the Nasdaq Composite Index closed at 25,366.09, down 100.10 points (0.39%).

The news that attracted the most attention that day was the change of management at Nvidia. NVIDIA announced that Hwang has resigned from his position as president, CEO, and board member. Chief Financial Officer (CFO) Colette Kress will serve as interim CEO and take on financial duties, and the board of directors has decided to search for a formal successor internally or externally.

The company announced its policy to continue its existing business operations, promises to customers, and product development schedule without disruption. However, it remains to be seen how the investment and cooperation strategy led by the co-founder will continue under the new management.

In the stock market, reactions varied from company to company. NVIDIA fell behind by more than 14% compared to the intraday market, but reduced some of the decline, and Coreweave, which had soared the previous day, also showed weakness. On the other hand, rival AMD closed at $585.30, up 5.86%. Rather than falling all at once, AI-related stocks showed conflicting trends for each company.

For AI cloud company Nevius, adjusting its performance outlook was a burden. Third-quarter sales were $980.8 million, up 571% from the same period last year, but the company narrowed its sales forecast for this year from $3 billion to $3.4 billion to $3 billion to $3.2 billion at the performance briefing. The explanation is that as the operation schedule of some external data centers was pushed back to next year, the expected timing of sales generation was also delayed. Despite significant external growth, concerns over delays in supply capacity expansion were highlighted, and the stock price closed at $128.64, down 16.84%.

While technology stocks were dealing with management changes and performance forecasts, supply instability grew in the crude oil market. Tensions in the Middle East increased as U.S. President Donald Trump stated that there was no need for an agreement with Iran and Yemen's Houthi rebels claimed to have attacked Saudi Arabian oil pipelines and oil facilities.

On the London ICE Futures Exchange, the January Brent crude oil contract was settled at $95.82 per barrel, up 3.30% from the previous price. The December contract for West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange also rose 2.55% to $88.74. Rising energy prices are a factor that can slow down the price slowdown by increasing production and transportation costs for companies.

The interest rate burden continued in the bond market. The U.S. 10-year Treasury bond yield, which resumed trading after the Veterans Day holiday, rose to the 5.1% level during the day. After consumer prices announced this week were higher than expected, caution about further interest rate hikes by the Federal Reserve (Fed) continued.

The employment indicators released today showed mixed directions. According to the U.S. Department of Labor, the number of new unemployment claims for the week ended November 7 was 200,000 on a seasonally adjusted basis, an increase of 9,000 from the previous week's revised number. On the other hand, the number of ongoing unemployment claims for the week ended October 31st decreased by 20,000 to 1.697 million. The 4-week moving average of new claims is 195,250, the same as the previous week's revised figure, so it is difficult to conclude that the overall job market is weakening based on this week's increase alone.

The market will now receive additional confirmation of price pressure through the US October Producer Price Index (PPI), which will be announced on the 13th. The announcement time is 8:30 a.m. Eastern U.S. time and 10:30 p.m. on the 13th in Korean time. If the price increase is strong at the production stage as well as consumer prices, concerns about further tightening may continue.

In the AI ​​industry, Nvidia's earnings announcement is the next major event. The company will release its 3rd quarter fiscal 2027 results as scheduled after the market closes on the 17th. Performance will be announced at 6:20 a.m. on the 18th, Korean time, and a briefing session will be held at 7 a.m.

In this announcement, not only sales and next quarter outlook, but also the business direction proposed by interim CEO Kress is of interest. Whether or not uncertainty in AI-related stocks will be resolved will likely depend on whether customer demand, product supply, and investment plans are maintained even after the change of management.