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Nasdaq-100 futures fell Wednesday evening as Nvidia shares slid on a report that the chip giant's board is preparing to unseat CEO Jensen Huang.
Futures tied to the tech-heavy Nasdaq-100 lost 1%, while S&P 500 futures fell 0.4%. Dow Jones Industrial Average futures were little changed.
In extended trading, selling resumed in Nvidia after The New York Times reported that Huang had an extramarital relationship with an executive at the company. The Wall Street Journal also reported that Nvidia's board is gearing up to remove Huang from his post. Shares were last down around 8%.
In regular trading, the Dow rose nearly 255 points, or 0.5%. The S&P 500 advanced 1.3%, and the Nasdaq Composite jumped 1.6%. The gains were driven by a post-earnings advance in CoreWeave and a rebound in Nvidia.
Investors are weighing whether the artificial intelligence-driven rally has more room to run given recent weakness in Nvidia, while CoreWeave's better-than-expected results and raised revenue outlook reinforced the longer-term growth story heading into tomorrow's session.
AI enthusiasm may be driving markets, with added momentum from Anthropic's upcoming IPO. However, macro and policy risks argue for staying selective rather than chasing performance, according to Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.
"We would be a little circumspect about the bounce-back as there are some things changing at the margin [like] stubborn inflation, more fed rate hikes, higher long-term interest rates, change in configuration in Washington DC [and] AI/data center regulation demands," he said.
Callie Cox, director of investment strategy at Plancorp, echoed that the tension between AI optimism and macroeconomic concerns could continue to weigh on sentiment.
"Lately, the stock market has been locked in a fierce battle between the hope of AI and the fear around interest rates and inflation," she said. "There doesn't seem to be much in between, and something may have to give."
Investors are now looking to upcoming economic data for further clues on inflation, the labor market and the broader outlook. On Thursday, the market will get initial jobless claims data at 8:30 a.m. ET, followed by existing home sales at 10 a.m.
Shares of Nvidia fell more than 7% in after-hours trading on Wednesday after The Wall Street Journal reported that the company's board is preparing to oust CEO Jensen Huang.
The news landed minutes after The New York Times reported that Huang had an extramarital relationship with an executive at the company.
Futures tied to the Nasdaq-100 and the S&P 500 opened lower to begin trading on Wednesday night.
Futures tied to the tech-heavy Nasdaq-100 futures slid 0.9%, while S&P 500 futures fell 0.3%. Dow futures inched higher.