Nasdaq futures retreat as Nvidia troubles deepen pressure on AI stocks

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Highlights

Nasdaq-100 futures decline 0.91%.
Nvidia shares face renewed pressure.
Dow futures remain slightly positive.

Nasdaq-100 futures dropped 0.91%, to 28,213.25. S&P 500 futures declined 0.43%, to 7,608.00, while Dow futures edged up 0.02%, to 52,586.00. The contrasting moves came amid renewed concerns about AI stocks and rising Treasury yields, CNBC reports.

Nvidia selloff weighs on AI stocks

Nvidia remained a central source of market uncertainty following reports about the possible departure of Chief Executive Jensen Huang. The developments have raised questions about leadership stability at the chipmaker, whose processors underpin much of the global investment in artificial intelligence infrastructure.

Nvidia shares were quoted at $161.49 in premarket trading, down $12.41, or 7.14%, from the reference price shown in earlier market data. The decline followed reports that the company's board was considering a leadership change, although no final decision had been announced.

The uncertainty has also affected companies closely connected to the AI industry. CoreWeave shares fell more than 5% in Wednesday's after-hours trading, while Intel and Dell declined around 3% each. Super Micro Computer lost more than 4%, reflecting broader concerns about the outlook for AI hardware and infrastructure spending.

Technology futures lag broader Wall Street

The weakness in Nasdaq-100 futures contrasted with the comparatively modest decline in S&P 500 futures and the small advance in Dow futures. The divergence suggested that investors were reducing exposure to technology stocks rather than selling across the entire market.

Rising Treasury yields have added another source of pressure. Higher bond yields can make equities less attractive, particularly companies whose valuations depend heavily on expectations of future earnings growth.

Investors are also reassessing whether spending on AI infrastructure will generate returns sufficient to justify elevated technology valuations. That uncertainty has increased the sensitivity of semiconductor and data center stocks to company-specific developments.

Nvidia earnings could determine market direction

Nvidia's upcoming earnings report on Nov. 17 will provide an important test of confidence in the AI sector. Investors will focus on demand for advanced chips, spending by major cloud providers, and management's outlook for future growth.

Leadership uncertainty adds another complication at a time when technology companies face scrutiny over capital expenditure and profitability. For the broader market, the immediate question is whether selling remains concentrated in AI-related shares or begins to affect other sectors.

We have previously highlighted that gold prices fall for third straight day as dollar and Treasury yields rise.

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