Nasdaq 100 futures slip on Nvidia concerns, Anthropic IPO details
Nasdaq 100 futures fell on Tuesday as investors assessed a report alleging Nvidia CEO Jensen Huang's affair with a Chinese businesswoman facilitated chip shipments. Anthropic's IPO plans, seeking up to US$64.4 billion, also drew scrutiny. Inflation data due later could further impact markets.
Futures tracking the tech-heavy Nasdaq 100 index fell on Tuesday as investors assessed fresh updates on the controversy surrounding Nvidia CEO Jensen Huang as well as details on Anthropic's initial public offering, according to The Standard. Inflation data later in the day is also likely to set the tone for the rest of the week, the report said.
Shares of Nvidia, the second-most valuable company in the world, erased their premarket gains and were last down 0.2 per cent. The Information reported that Jensen Huang's affair with Chinese businesswoman Alice Huang, alleged to be a spy for Beijing, facilitated the shipment of at least US$7.5 billion worth of the company's chips through Chinese firms. As CEO of the company at the heart of the AI boom, Huang's leadership and future at Nvidia are particularly important to investors.
At 07:21 a.m. ET, Dow E-minis were up 168 points, or 0.32 per cent, and S&P 500 E-minis were up 1.75 points, or 0.02 per cent. Nasdaq 100 E-minis were down 95.75 points, or 0.34 per cent.
Anthropic's initial public offering is expected to raise as much as US$64.4 billion, giving the company a fully diluted valuation of up to US$1.4 trillion, according to a filing. The prospectus sets the stage for one of the biggest IPOs on record. A listing by Anthropic could also force other AI heavyweights to compete harder for investor dollars. "It's come at a little bit of a difficult time with all the concerns around AI and overinvestment. Sometimes the initial offering goes one way and then the subsequent days kind of see a lot of volatility. So it stands to be seen how investors feel about another round of AI enthusiasm," said Daniela Hathorn, senior market analyst at Capital.com.
Chips were subdued in premarket trading, with Intel and Marvell Technology each about 2 per cent lower. Separately, cooling oil prices on Tuesday emboldened investors to wade into some corners of the equity market, pushing Dow futures higher. Brent crude futures slipped below US$90 a barrel for the first time since August.
Data later on Tuesday is expected to show the CPI increased 0.3 per cent last month after accelerating by 0.6 per cent in September, a Reuters survey of economists predicted. On an annual basis, core CPI is estimated to have expanded 2.7 per cent, following a 2.6 per cent gain in September. The rate is still well above the Federal Reserve's 2 per cent target.
Additionally, neocloud firm CoreWeave is expected to report quarterly earnings after market close on Tuesday. Questions about the sustainability of the AI boom and the company's debt burden have pressured the stock recently. A strong performance could help reassure investors about the health of the industry, which SpaceX CEO Elon Musk has said could face consolidation and failures. Shares of CoreWeave and its peer Nebius fell 1.3 per cent each in premarket trading.