Market Summary - November 9, 2026
The weekend was dominated by the scandal surrounding Nvidia, which has significant national security implications. CEO Jensen Huang admitted to an affair with Alice Huang, who is linked to Megaspeed, a client accused of aiding sanctioned Chinese companies in acquiring AI chips. U.S. intelligence agencies suspect that she may have passed sensitive information to Beijing. In response, Nvidia's board has initiated an independent investigation, asserting that there is no evidence of leaked secrets. However, three Republican committee chairmen are calling for Huang to testify in a closed-door hearing scheduled for November 18.
Geopolitical Developments
In relation to Iran, former President Trump has adopted a mixed approach, suggesting that a return to open conflict is "highly unlikely" if Tehran agrees to a robust nuclear deal. He also emphasized the military presence in the region, including three aircraft carriers, while CENTCOM has launched Task Force Iron Gate to disrupt Iran's land routes.
Despite diplomatic efforts, new attacks on energy infrastructure occurred over the weekend, including Houthi drone strikes in Riyadh and an Iranian drone attack that halted operations at the Khor Mor gas field in Iraq. Following Trump's electoral defeat, there is increasing pressure to end military engagements, particularly as high fuel prices contributed to Republican losses.
U.S.-China Trade Relations
Tensions in U.S.-China trade appear to be easing, with Beijing extending the suspension of 24% retaliatory tariffs on U.S. goods for an additional two months. Concurrently, Democrats in Washington are preparing to challenge Trump's tariffs once they regain control of Congress.
European Social Unrest
Europe is grappling with hybrid threats and social unrest. Recent cyberattacks have disrupted supermarket operations in several countries, while protests against the rising cost of living continue in France, with significant participation reported. In Spain, early elections are set for November 29, where the far-right Vox party is expected to gain traction.
Economic Indicators
China's Producer Price Index (PPI) inflation rose to 5.7% year-on-year in October, surpassing expectations, while Consumer Price Index (CPI) inflation fell to 0.7%. These figures indicate rising production costs amid weak domestic demand, putting pressure on corporate margins.
Japan confirmed a record currency intervention of approximately $50 billion to support the yen, while the U.S. market anticipates a potential Federal Reserve rate hike in December, following a positive jobs report.
Market Performance
Wall Street experienced its worst week since April 2025, with the Nasdaq 100 losing around $2.3 trillion in market value. Following a significant sell-off, there was a partial rebound on Friday, with the Nasdaq Composite gaining 1.09% and the S&P 500 rising 0.31%.
In individual stock performance, notable losers included Reddit and Intel, while FedEx and Regeneron saw substantial gains. Analysts suggest that the Nasdaq is currently oversold, but retail investors are hesitant to buy the dip.
Asian Markets
In Asia, the chip market crash halted, with Taiwan's Taiex index rising significantly after regulatory measures were introduced to stabilize the market. South Korean investors returned to memory chipmakers, viewing previous sell-offs as excessive.
Commodity Prices
Oil prices fell despite recent attacks on energy infrastructure, as market sentiment leans towards diplomacy. Precious metals, however, saw price increases, with gold and silver rising sharply amid geopolitical tensions and a weaker dollar.
Cryptocurrency Update
Bitcoin fell below $74,000, marking its lowest level since August, with analysts warning that a drop below $75,000 could signal further declines.
Looking Ahead
European markets are expected to open slightly higher, with key economic indicators and Fed officials' speeches scheduled for the week. The focus will be on whether the oversold Nasdaq can rebound despite ongoing concerns surrounding Nvidia.