Scandal and investigation inside Nvidia. Oil prices fall below $88 per barrel

By JustMarkets 

The sharp rebound on Wall Street on Monday demonstrated investors’ aggressive appetite to buy the dip following the deep losses of previous sessions. By the close, the Dow Jones (US30) had gained 2.15%. The S&P 500 (US500) advanced 2.35%, while the technology-heavy NASDAQ (US100) ended Monday up 3.40%. Oppenheimer’s upgrade of AMD to “Outperform” (+13.3%), along with strong gains across chipmakers such as Applied Materials (+11.4%), Lam Research (+10.4%), and Broadcom (+8.8%), highlighted that corporate earnings fundamentals and hyperscaler CapEx trends remain highly resilient despite post-election risks. However, the key divergence within the market was Nvidia’s decline (-4.3%), which stood in contrast to the broader technology rally. Allegations surrounding Jensen Huang’s admission of an extramarital relationship with a suspected Chinese intelligence operative, as well as an independent investigation launched by the board of directors, have created significant risks for the company. Beyond the potential threat of leadership changes and key-person risk, investors are increasingly concerned about the likelihood of tighter US export controls from Congress and regulators. This has intensified pressure on Nvidia ahead of its third-quarter earnings release.

The acceleration of Mexico’s annual inflation rate to 3.75% in October, the highest level since May, driven by rising food prices and the expiration of summer electricity subsidies (+2.13% MoM), has significantly complicated the outlook for the Bank of Mexico. A monthly CPI increase of 0.65% and core inflation holding at 3.80% clearly indicate that pricing pressures are spreading from seasonal factors into services and food-service sectors. With headline inflation moving further away from Banxico’s 3.00% target for a third consecutive month, it will become increasingly difficult for policymakers to justify further monetary easing.

In Europe, Germany’s DAX (DE40) rose 1.73%, France’s CAC 40 (FR40) gained 1.16%, Spain’s IBEX 35 (ES35) advanced 1.93%, while the UK’s FTSE 100 (UK100) closed 1.02% higher.

The decline of WTI crude below $88 per barrel, reaching its lowest level since August 31 after a 4% drop during the morning session and a cumulative loss of 12.8% last week, illustrates the intense battle between diplomatic expectations and real geopolitical risks in the Middle East. Markets continue to digest comments from Donald Trump signaling a desire to avoid further escalation with Iran, provided that an agreement involving Qatar can be reached. These developments have removed the immediate geopolitical risk premium from energy contracts and temporarily restrained upward pressure on oil prices.

The sharp rise in US natural gas prices (+4% to $3.13/MMBtu), reaching their highest level since mid-October, resulted from a classic tightening of the supply-demand balance driven by seasonal factors and constrained supply. Weather expectations shifting toward significantly colder temperatures generated a strong bullish demand impulse for heating needs while coinciding with an exceptionally large buildup of speculative short positions accumulated by hedge funds before the beginning of November.

In Asia, Japan’s Nikkei 225 (JP225) gained 2.33%, China’s FTSE China A50 closed 1.17% lower, Hong Kong’s Hang Seng (HK50) fell 0.13%, while Australia’s ASX 200 (AU200) ended Monday 0.10% higher.

On Tuesday, the offshore yuan (USD/CNH) remained stable near 6.66 per US dollar, demonstrating resilience amid strong Chinese trade data. The main factor supporting the Chinese currency continues to be the rapid expansion of the trade surplus, which reached $1.043 trillion during the first ten months of 2026. This marked only the second time in history that China’s trade surplus exceeded $1 trillion during the year-to-date period and positions the country to potentially surpass last year’s record of $1.2 trillion.

China’s exports surged 35.2% YoY in October to $412.33 billion, supported by sustained global demand for technology products and AI-related infrastructure. Imports grew 41.6% YoY to $307.05 billion, the strongest increase since May 2021, signaling that domestic demand may have passed its cyclical bottom.

On Tuesday, the New Zealand dollar (NZD/USD) consolidated near the $0.5630 level, maintaining the gains recorded during the previous session when the kiwi posted its strongest one-day advance since April. Political support for the currency stemmed from preliminary election results, which indicated that the ruling National Party had secured a slight advantage in the race for a parliamentary majority. Although the final results will not be released until November 27, markets are already pricing in the continuation of the current coalition government. For monetary policy, this implies the continuation of the Reserve Bank of New Zealand’s (RBNZ) strict mandate focused exclusively on inflation targeting.

S&P 500 (US500) 7,549.94 +173.08 (+2.35%)

Dow Jones (US30) 52,389.75 +1,104.02 (+2.15%)

DAX (DE40) 26,267.19 +446.83 (+1.73%)

FTSE 100 (UK100) 10,782.87 +108.93 (+1.02%)

USD Index 101.68 -0.62 (-0.61%)

News feed for: 2026.11.10

• Australia NAB Business Confidence (m/m) at 02:30 (GMT+2) – AUD (MED)
• China Trade Balance (m/m) at 05:00 (GMT+2) – CHA50, HK50 (MED)
• Norway Inflation Rate (m/m) at 09:00 (GMT+2) – NOK (MED)
• US Consumer Price Index (m/m) at 15:30 (GMT+2) – USD, XAU, US indices (HIGH)

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.