FTSE 100 Live: Stocks to fall; tech slumps after Jensen Huang Nvidia exit

On November 13, Asian stocks regained stability following a turbulent week marred by revelations of extramarital affairs involving Nvidia CEO Jensen Huang, which ultimately led to his resignation. The AI boom he had spearheaded was significantly impacted by the news. US Treasury yields surged, with the two-year yield peaking at a one-month high, contributing to the dollar's appreciation as investors contemplated a substantial 50-basis-point rate increase by the Federal Reserve in December.

Huang's departure on November 12, triggered by reports of affairs including one involving a suspected Chinese spy, plunged the chipmaker into crisis and sent shockwaves through the AI industry, potentially reshaping US chip export policy and the broader AI sector and supply chain. Analysts at JPMorgan caution that his departure leaves a leadership vacuum that may prove challenging to fill, with new deals potentially facing delays or requiring additional compensation due to investor concerns about Nvidia's role.

Nvidia shares dipped by 3% in extended trading, while those of its customers, such as South Korea's Naver, continued to decline on November 13, with Naver plummeting by 2.75%. Industry competitors like AMD, Arista, and Broadcom may benefit from the Nvidia fallout, as investors search for alternative suppliers and investors. MSCI's Asia-Pacific index of shares outside Japan rebounded by 0.26%, partially recovering from its 1.3% drop the previous day.

South Korea's Kospi climbed by 2.35%, while Japan's Nikkei rose by 1.4%. The global equities recovery came after a market downturn sparked by the Republicans' electoral defeat, which fueled fears of stricter regulation that could hinder the AI infrastructure buildout driving stocks to record highs in 2026. Nasdaq and S&P 500 futures surged by more than 0.2%, while EUROSTOXX 50 futures slipped by 0.37%.

Concerns over Nvidia's future also extended to the metals market, with London copper prices hitting a four-month low and Australian-listed miner Capstone Copper Corp shares falling over 5% on November 13. The two-year US Treasury yield reached 4.8920%, with the 10-year yield touching a three-week high of 5.1433%, reflecting the Federal Reserve's increasingly hawkish stance.

A 14.5% probability of a 50-basis-point Fed hike in December emerged, up from zero a week prior, according to the CME FedWatch tool. The Fed's hawkish expectations boosted the dollar, which was set for a weekly 0.9% gain, its biggest increase in over a month. The stronger greenback pressured the yen, which hovered near the 160 per dollar level on November 13, prompting traders to monitor for potential Tokyo intervention.