Stocks Slip as Nvidia, CoreWeave Revive AI Jitters: Markets Wrap
(Bloomberg) — US stock futures retreated as traders backed away from high-priced technology companies after SoftBank Group Corp. sold its entire Nvidia Corp. stake and CoreWeave Inc. warned revenues will be lower than expected.
Futures for the S&P 500 and Nasdaq 100 slipped, trimming Monday’s gains that followed optimism that the US government shutdown was nearing resolution. Nvidia dipped and CoreWeave sank about 9% in premarket trading.
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The dollar was little changed, and cash trading in Treasuries was closed for the Veterans Day holiday. Stocks in Europe gained. Asia trading was mixed.
The setback at CoreWeave, which rents out access to powerful artificial intelligence chips, gives investors another reason to worry about the strength of the tech industry at a time when there’s widespread anxiety over valuations.
“The valuations don’t look crazy but they do if there’s nervousness on the growth story,” Helen Jewell, chief investment officer of EMEA fundamental equities at BlackRock Inc., told Bloomberg TV. “That’s why I think the AI story, of which we do remain bullish, we do think while there is a lot further to go, it is likely to be a volatile ride.”
Meanwhile, Nvidia fell 1.3% after SoftBank sold its entire stake, pocketing $5.83 billion. “I can’t say if we’re in an AI bubble or not,” Chief Financial Officer Yoshimitsu Goto said during an earnings conference. SoftBank sold Nvidia “so that the capital can be utilized for our financing,” he added, without elaborating.
With the US government shutdown set to end on Wednesday, investors hope that fresh jobs and inflation reports will spur more interest-rate cuts from the Federal Reserve.
“It will be about data, earnings and the Fed, and investors will remain on the defensive until there is clarity on all factors,” said Geoff Yu, senior macro strategist at BNY. “The bar is high for further gains in risk sentiment.”
In other markets, the pound weakened after data showed unemployment in the UK rose more than expected, prompting traders to add to bets on a Bank of England interest-rate cut next month.
Corporate News:
Gemini Space Station shares drop 8.8%. The crypto exchange founded by Tyler and Cameron Winklevoss reported a steeper loss than analysts anticipated in its first earnings release since going public. Rocket Lab shares rise 13%. The space transportation company reported revenue that beat the average analyst estimate. Sony Group Corp. jumped more than 5% after raising its profit outlook. Xpeng Inc. shares surged to their highest level in eight months, amid growing optimism over the Chinese electric carmaker’s progress in technologies including humanoid robots. Elliott Investment Management has been building a significant stake in Toyota Industries Corp. and has told the Toyota group company that its proposed privatization price is too low. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.2% as of 6:17 a.m. New York time Nasdaq 100 futures fell 0.3% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 rose 0.7% The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1572 The British pound fell 0.3% to $1.3136 The Japanese yen was little changed at 154.26 per dollar Cryptocurrencies
Bitcoin fell 0.3% to $105,240.45 Ether rose 0.9% to $3,571.84 Bonds
The yield on 10-year Treasuries was little changed at 4.12% Germany’s 10-year yield was little changed at 2.67% Britain’s 10-year yield declined six basis points to 4.40% Commodities
West Texas Intermediate crude rose 0.5% to $60.37 a barrel Spot gold rose 0.6% to $4,140.17 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Andre Janse van Vuuren.
©2025 Bloomberg L.P.
