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Semiconductor stocks saw sharp divergence pre-market. $NVIDIA(NVDA.US)$ plunged over 5% amid the CEO sex scandal, while $AMD(AMD.US)$ rallied more than 3% to lead chip stocks. $Tesla(TSLA.US)$ edged higher after Musk announced Cybertruck production would soon end. On Monday, the three major US futures collectively rebounded pre-market: Dow futures up 1.05%, Nasdaq 100 futures up 0.52%, S&P 500 futures up 0.67%. European markets broadly gained, with Germany's DAX up 0.93%. WTI crude slid 3.25% to USD 87.88, while gold rose 1.02% to USD 4,116, as risk-off sentiment built.
Stock News
1. NVIDIA CEO sex scandal continues to deepen, pre-market drop exceeds 5%: $NVIDIA(NVDA.US)$ tumbled over 5% to USD 177.29 pre-market, with turnover of USD 912 million topping the entire market. After CEO Jensen Huang admitted to an extramarital affair, the board launched an independent investigation, and Congress is also planning to follow up. Despite Trump publicly backing Huang to stay, calling him an "upstanding individual," analysts warn that leadership turmoil could keep the stock under sustained pressure in the near term. A Bloomberg columnist noted the matter could shake confidence in the AI investment boom and affect the massive financial support NVIDIA provides to customers and its investments in startups.
2. AMD rallies over 3% on rotation effect: $AMD(AMD.US)$ gained 3.11% pre-market to USD 463, with turnover of USD 179 million. Market expectations that NVIDIA's management turmoil could create a window for AMD to expand its AI chip market share triggered fund flows from the rival, producing a clear seesaw effect.
3. Musk announces Cybertruck production to end soon, pivots to Cybercab: $Tesla(TSLA.US)$ edged up 0.23% pre-market. Musk said Cybertruck production will end in about eight months, prioritizing the manufacturing of autonomous Cybercabs, and that the company will refund a large volume of customer deposits as orders exceed capacity. Musk dismissed reports that the move was driven by losses, saying opportunity cost and Cybercab's value were the main reasons. Cybertruck sales had already fallen sharply from earlier targets.
4. Goldman Sachs: Hedge funds dump tech stocks at near-record pace: Goldman Sachs data shows hedge funds are selling tech and industrial stocks at a near-record pace amid midterm-election-driven concerns over AI infrastructure expansion, with net selling in the tech sector approaching an all-time high. Gross leverage saw its largest weekly decline since March 2020, signaling that institutions are broadly compressing portfolio risk exposure.
5. HSBC strategists turn bullish again: Overweight US equities after tech pullback deemed sufficient: HSBC strategists have turned bullish again just two weeks after cutting equity exposure, reinstating an overweight on US and Asian equities while trimming government bonds back to neutral. The team believes the Treasury rally has overshot, and that the Anthropic IPO and NVIDIA earnings will be key tests for AI and tech stocks.
Global Macro
1. Hedge funds panic-deleveraging, tech stocks hit by near-record selling: Goldman Sachs reports that midterm election results have triggered concerns over the AI infrastructure expansion outlook, prompting hedge funds to slash tech exposure aggressively. The single-week drop in gross leverage was the largest since March 2020. The move reflects deep institutional doubts about the sustainability of AI investment returns and could amplify tech sector volatility in the short term.
2. UBS: AI infrastructure to sustain global growth through 2027, only modest monetary tightening ahead: UBS's chief economist noted that AI infrastructure continues to offset headwinds from tariffs and energy costs, and expects the macro environment in 2027 to be conducive to disinflation, with only modest monetary tightening. Hyperscaler capex remains massive, and AI will continue to drive earnings growth and S&P 500 returns, with the bank favoring a broadening rally into industrials and financials.
3. Trump hints Russia-Ukraine war nearing end, gold safe-haven demand climbs: Trump suggested the Russia-Ukraine war will soon conclude, hinting at possible changes to Ukraine's territorial boundaries. Ukraine, Russia and the US will hold a fourth round of mediation talks in Abu Dhabi from November 10 to 11. COMEX gold rose 1.02% to USD 4,116, reflecting safe-haven allocation demand amid geopolitical uncertainty.
Pre-market Turnover TOP10
| No. | Name | Pre-market Change | Pre-market Price | Pre-market Turnover |
|---|---|---|---|---|
| 1 | $NVIDIA(NVDA.US)$ | -5.01% | 177.29 | USD 912M |
| 2 | $Direxion Daily Semiconductor Bull 3X Shares(SOXL.US)$ | +0.59% | 46.24 | USD 667M |
| 3 | $Direxion Daily Semiconductor Bear 3X Shares(SOXS.US)$ | -0.56% | 70.55 | USD 431M |
| 4 | $Invesco QQQ Trust(QQQ.US)$ | +0.46% | 659.09 | USD 349M |
| 5 | $Micron Technology(MU.US)$ | -0.65% | 685.51 | USD 266M |
| 6 | $SanDisk(SNDK.US)$ | -1.87% | 819.44 | USD 229M |
| 7 | $AMD(AMD.US)$ | +3.11% | 463.02 | USD 179M |
| 8 | $ProShares UltraPro QQQ(TQQQ.US)$ | +1.22% | 52.89 | USD 175M |
| 9 | $SpaceX(SPCX.US)$ | +1.33% | 136.05 | USD 144M |
| 10 | $SPDR S&P 500 ETF Trust(SPY.US)$ | +0.68% | 740.27 | USD 102M |
Economic Calendar
(All times in Beijing Time)
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