Stocks Slip on AI Caution as SoftBank Exits Nvidia: Markets Wrap
(Bloomberg) — The rally in stocks faded amid renewed questions over the valuations of some of the biggest beneficiaries of the artificial-intelligence boom after Japan’s SoftBank Group Corp. sold its entire stake in Nvidia Corp.
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. SoftBank said it raised $5.8 billion from the sale of its Nvidia shares, part of Masayoshi Son’s push to carve out his own foothold in AI. Nvidia fell 0.7% in premarket trading.
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The dollar was heading for its first day of gains in five. The pound led losses among major currencies as unemployment in the UK rose more than expected, prompting traders to add to bets on a Bank of England interest-rate cut next month. Bitcoin fell.
European stocks bucked the risk-off trend, rising 0.8% as consumer stocks outperformed. Cash trading in Treasuries was closed due to the US Veterans Day holiday.
Traders are grappling with a range of risks and uncertainties as they assess whether this year’s stellar rally can regain momentum. While an end to the government shutdown would ease economic headwinds and restore access to key data, offering more clarity on monetary policy, fears persist that the market leaders of the rally have run too far, too fast.
Trade fears also resurfaced after the Wall Street Journal reported that China will fast-track rare earth export approvals for most companies, but excluded those linked to the US military. The move added fresh uncertainty over the durability of the trade ceasefire between the world’s two largest economies.
“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.”
Corporate News:
CoreWeave Inc. lowered its annual revenue forecast after suffering a delay fulfilling a customer contract, marking a setback for a company that is racing to keep up with the artificial intelligence boom. 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. Sony Group Corp. jumped more than 5% after raising its profit outlook. SoftBank Group Corp. reported a surprise quarterly profit jump after a tech rally boosted the value of its holdings in companies such as Nvidia Corp. and Intel Corp., safeguarding Masayoshi Son’s ability to make further bets on artificial intelligence. SoftBank also sold its entire stake in Nvidia Corp., pocketing $5.8 billion. 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
The Stoxx Europe 600 rose 0.8% as of 9:31 a.m. London time S&P 500 futures fell 0.2% Nasdaq 100 futures fell 0.3% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index was little changed The MSCI Emerging Markets Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1565 The Japanese yen fell 0.1% to 154.33 per dollar The offshore yuan was little changed at 7.1218 per dollar The British pound fell 0.4% to $1.3128 Cryptocurrencies
Bitcoin fell 0.3% to $105,337.79 Ether rose 1.1% to $3,577.97 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
Brent crude rose 0.4% to $64.34 a barrel Spot gold rose 0.7% to $4,143.99 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Levin Stamm.
©2025 Bloomberg L.P.
