Gold fell nearly 3 percent on Thursday as Treasury yields climbed above 5 percent, and the Nasdaq slipped after Nvidia's chief executive resigned. As flagged in this morning's analysis, the Nvidia story was the day's wildcard, and it turned from a report into a resignation.
Prices as of 20:00 UTC. The US cash session closes at 21:00 UTC, so index levels are intraday.
- Nvidia lost its CEO, and since it is the biggest name in AI, the Nasdaq felt it.
- Gold dropped because higher yields and a stronger dollar make it less attractive to hold.
- Traders now expect the Fed to raise rates again in December, which is pressuring most risk assets.
The Close: Small Losses, Big Moves Underneath
The S&P 500 traded near 7,598, down about 0.3 percent from Wednesday's close. The Nasdaq lost roughly 0.5 percent and the Dow gave up about 0.2 percent. Small caps fared worse, with the Russell 2000 down about 1.3 percent.
Under the surface, chip stocks split. AMD jumped about 6 percent after an analyst upgrade as investors saw the Nvidia change as an opening for rivals, while Super Micro fell about 10 percent. Initial jobless claims came in at 200,000, a touch above the 195,000 expected.
Scenarios to watch: a hold above Wednesday's close near 7,619 would show buyers absorbing the news, while a break under Tuesday's close near 7,521 would deepen the pullback.
- Index losses were modest, but small caps and Nvidia took the heavier hit.
- Money rotated within chips rather than leaving the sector entirely.
Story of the Day: Nvidia Loses Its CEO
Jensen Huang resigned as Nvidia's CEO with immediate effect after reports about his personal conduct, and Chief Financial Officer Colette Kress became interim chief executive. Nvidia shares fell as much as 13 percent early, then recovered to a loss of about 5 percent. Those are allegations, and Reuters noted they should not be treated as proof of wrongdoing.
Nvidia is still due to report earnings on November 17, so the first call without Huang is now the next big test for the AI trade.
- A leadership vacuum at the AI leader adds uncertainty ahead of November 17 earnings.
- Rivals such as AMD gained as investors repositioned.
Rates and Gold: Yields Break Above 5 Percent
The 10-year Treasury yield rose about 12 basis points to roughly 5.1 percent, and the 30-year yield reached about 5.4 percent. Oil gains and expectations of more Fed hikes drove the move, with futures pricing about a 90 percent chance of a quarter-point hike at the December 8 and 9 meeting.
The dollar index hit a one-year high, and gold broke below $3,900 for a third straight losing session. It trades near $3,886, down about 2.9 percent on the day and about 5 percent over a month.
Scenarios to watch: a daily close back above $4,000 would show buyers returning, while a slide under $3,850 would extend the downtrend.
- Gold is trading against yields and the dollar, not with fear.
- Long-dated yields at multi-year highs also weigh on housing and growth stocks.
Oil and Crypto Check
WTI rose about 2.8 percent to near $88.94 after President Trump said the US does not need a deal with Iran, reviving supply worries that had eased on peace hopes this morning.
Bitcoin slipped to about $71,600, lower than this morning's $73,500, as yields rose. Ether trades near $2,014. Spot crypto ETFs have seen steady outflows in November, which keeps demand soft.
Scenarios to watch: for Bitcoin, the $70,000 area is the key reference zone; a daily close under it would weaken the structure, while a move back above $75,000 would improve it.
- Oil is reacting to Iran headlines more than to inventories.
- Bitcoin is following the Nasdaq and yields lower.
After-Hours and Overnight Watch
- Cisco and Applied Materials report after the US close at 21:00 UTC, a read on AI spending beyond Nvidia.
- Asia opens with Nvidia, the dollar and yields in focus.
- Any Fed speaker comments on a December hike will move yields and gold.
- Cisco and Applied Materials results are the next test for AI spending.
- Yields above 5 percent remain the main pressure on gold and tech.
This is market commentary for information only, not investment advice. ThriveInMarkets is based in Cyprus. Markets carry risk of loss.