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Bloomberg Television48 min

Trump Backs Nvidia CEO Amid Spy Tie

Trump, Kailey Leinz, Greg Stanton, Rick Davis, Jeanne Sheehan Zaino, Keith Sonderling, Charlie Pellett, Tyler Kendall, Michael Shepard

Earnings Call, Interview, Panel, Press Conference, Conference Presentation
  • NVIDIA shares declined 5.1% while the Philadelphia Stock Exchange semiconductor index surged 6.5%, with Tesla, Broadcom, and AMD rising 5.2%, 8.9%, and 12.1% respectively.
  • The S&P 500 gained 2.3% (172 points), the Dow Industrials rose 2.1% (1,100 points), and the Nasdaq Composite and Nasdaq-100 increased 2.6% (630 points) and 3.2% respectively.
  • Market volatility indicators show the VIX holding just above 20, while the two-year Treasury yield sits at 4.55% ahead of a scheduled CPI report.
  • President Trump has a scheduled trip to China next week and stated he would likely include NVIDIA CEO Jensen Huang, though he remains unsure if Huang will attend.
  • Regarding the NVIDIA espionage allegations, the company's board plans an internal investigation concluding there is no evidence of compromised secrets, while Senate Democrats launch a parallel probe and House Republicans request direct briefings on national security controls.
  • Congressional Democrats expect classified briefings on intelligence community knowledge within one to two days and plan to pass the Restrict Act to codify export controls and prevent chip transshipment to China.
  • President Trump indicated it is unlikely the U.S. will restart kinetic military activity, emphasizing diplomacy as the primary option, while the White House seeks to lift Iran's naval blockade demands as a non-starter for negotiations.
  • Jensen Huang anticipates remaining CEO for at least 20 years contingent on performance and expressed hope that a successor is already within the company, while acknowledging the high pressure of the role.
  • Michael Shepard predicts the NVIDIA scandal will drive increased bipartisan pressure on big tech regarding export controls and cybersecurity risks, alongside voter frustration over data center infrastructure and utility costs.
  • Republicans are expected to choose leadership in both chambers tomorrow, though Senate Majority Leader John Thune faces internal pressure to delay the vote, while Democrats anticipate Hakeem Jeffries and Chuck Schumer leading their caucus.
  • Democrats plan to fight to lower consumer costs and restore administrative checks and balances over the next two years, requiring college sports bills to align with Title IX standards for women's sports.
  • Democrats are open to bipartisan immigration reform if President Trump proposes a modernized system with strong border security and provisions for long-term residents, Dreamers, farm workers, and the care economy.
  • Rick Davis predicts it will be difficult to confirm new cabinet secretaries or 20 federal judges before year-end due to a short lame duck session, tight committee vote math, and the confirmation of only three judges to date.
  • The Department of Labor is investigating PERM program abuse with the DOJ and Inspector General, noting construction and manufacturing wages rose 6% and 5% respectively, while overall wages increased 3.1% year-over-year.
  • Boeing is cutting 5% of commercial workers due to production ramp-up delays, and Tesla plans to return Cybertruck deposits as orders exceed processing capacity before ending pickup production next year.
  • Coinbase Global received full regulatory sign-off to become a nationally chartered trust bank, while KKR expects to return over $40 billion to clients this year, exceeding its prior record by more than 50%.
  • West Texas Intermediate crude fell 3.5% to $87.69 a barrel and Brent crude dropped 4.6% to $93.75, while gold rose $32 an ounce to $4,102 and the 10-year Treasury yield settled at 4.87%.