Stock Market Today: Nvidia Pressures Indexes to Maintain Rebound
Cheaper oil is handing Wall Street a Monday bounce, but a boardroom shock at one AI giant and stalled peace talks could undo it fast. Find out which corner of the market is quietly pulling ahead.
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Oil prices are falling, putting the Dow on track to lead a Monday rebound. In delayed premarket trading around 7:31 a.m. ET, the ETF that tracks the Dow was up 1%. Cheaper energy is giving investors some relief after last week’s AI-driven selloff. Tech is still under pressure after the board of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) said over the weekend that it had opened an investigation into CEO according to CNBC.
Small Caps and the Dow Lead Monday’s Premarket Rebound
| Index | Reading | Change |
|---|---|---|
| S&P 500 (ETF proxy, premarket) | $740 | +0.65% |
| ETF proxy for the Nasdaq-100 (premarket) | $660 | +0.53% |
| ETF proxy for the Dow (premarket) | $517 | +0.97% |
| Russell 2000 (ETF proxy, premarket) | $277 | +1.28% |
| VIX (Thursday close) | 28.18 | +11.57 points |
A premarket reading for the Nasdaq Composite wasn’t available, so the table uses the Nasdaq-100 instead.
Falling Oil Is Driving the Bounce
CNBC reported that West Texas Intermediate and Brent futures both fell sharply overnight. The latest WTI spot reading was $99.64 on November 3, already below the $110 peak from October 19.
Lower oil eases inflation fears, and bond yields have been falling too. The 10-year Treasury yield was 4.84%, down from 5.21% in mid-October.
Small caps benefit most from that mix because many of them carry floating-rate debt. That helps explain why the Russell 2000 proxy is leading every other index this morning.
NVIDIA’s Board Probe Keeps Tech Under Pressure
Last week’s tech selloff started with worries that the strong Democratic showing in the midterms could lead to tighter rules on data center construction. Over the past month, the Nasdaq-100 proxy has fallen 13%. Now NVIDIA is also dealing with a board investigation into CEO Jensen Huang.
Schwab’s Liz Ann Sonders said Friday that retail selling had been heavy: “Retail has not proven to be the dip buyers that they have been in the past.”
Why This Rally Could Fade Quickly
Today’s gains depend on oil, and oil depends on Iran. Secretary of State Marco Rubio said Sunday that peace talks appear stalled. The market is in high-fear territory with the VIX near 28. Options traders are still paying for protection against large swings. With the Dow and small caps leading and tech lagging, this morning looks like a rotation out of tech.
Inflation Data and AI Earnings This Week
September wholesale inventories come out at 10 a.m. ET, and Occidental Petroleum (NYSE:OXY) reports today. Its results will show how producers are handling the drop in oil. The consumer price index arrives Tuesday and the producer price index on Friday.
AI earnings will show whether the tech selloff has further to go. CoreWeave (NASDAQ:CRWV), Cisco (NASDAQ:CSCO) and Applied Materials (NASDAQ:AMAT) all report this week. Pay close attention to any changes to their capex plans, since every dollar of that spend goes to the power, cooling, and networking suppliers we profiled in a free report on seven AI infrastructure names that aren’t chipmakers.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years, he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, Money Morning, and, of course, 24/7 Wall St. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
