US pre-open: Futures mostly lower as Nvidia reportedly weighs ousting Huang.


Wall Street futures were mostly lower ahead of the open on Thursday, pressured by a sharp sell-off in Nvidia after reports suggested chief executive Jensen Huang could be forced out of the company.

New York Stock Exchange

Source: Sharecast

As of 1230 GMT, Dow Jones futures were up just 0.01%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.43% and 0.91% lower, respectively.

The Dow closed 254.60 points higher on Wednesday, more than reversing losses recorded in the previous session.

While Nvidia closed slightly higher on Wednesday, selling pressure intensified in extended trading after media reports linked Huang to an alleged misconduct scandal and indicated that Nvidia's board was preparing to remove him from the top job. Shares in the AI chip giant were down 7% in pre-market action as investors assessed the potential impact of a leadership change at one of the market's most closely watched technology companies.

Nvidia also weighed on broader tech sentiment, with investors increasingly focused on the implications for the artificial intelligence sector, where the company has been a key beneficiary of surging data centre and AI-related spending.

Elsewhere, Treasury yields were mixed as bond markets reopened following the Veterans Day holiday, with traders awaiting fresh inflation and housing market data for further clues on the health of the US economy and the Federal Reserve's policy outlook. The yield on the benchmark 10-year Treasury note was broadly unchanged at 4.99%, while the rate-sensitive two-year yield rose three basis points to 4.76%.

On the macro front, weekly jobless claims data from the Labor Department will be out at 1330 GMT, while October existing home sales will follow at 1500 GMT.

In terms of earnings, Cisco Systems and Applied Materials were both slated to report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com

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