Dow Jones Futures Remain Steady Amid Hawkish Fed Rate Outlook, Nvidia Leadership Turmoil

• US index futures struggle as hot US CPI data pushed market odds for a December Fed hike to nearly 91%.

• Nvidia shares tumbled over 8.5% after-hours amid reports of leadership turmoil and potential removal of CEO Jensen Huang.

• Regular Wednesday trading closed higher, led by a 25% CoreWeave surge that boosted the Nasdaq and S&P 500.

Dow Jones futures remain steady around 52,580 during the European hours on Thursday. Meanwhile, S&P 500 futures decline 0.43% to trade around 7,610, and Nasdaq 100 futures fall 0.92% to trade around 28,210.

US equity futures face challenges amid growing hawkish sentiment surrounding the Federal Reserve's (Fed) policy outlook, fueled by hotter-than-expected US Consumer Price Index (CPI) inflation data.

Traders have ramped up bets on a December rate hike after Fed Governor Christopher Waller indicated earlier this week that he would support a quarter-point increase, or even a half-point move if inflation worsens. According to the CME FedWatch Tool, markets are now pricing in a nearly 91% probability of a December rate hike.

Market sentiment turned cautious as Nvidia shares came under renewed selling pressure following reports of potential leadership turmoil at the chipmaker. During after-hours trading, the stock tumbled more than 8.5% after The New York Times reported allegations of a relationship between CEO Jensen Huang and a company executive, while The Wall Street Journal reported that the board was preparing to remove him from his position. Given Nvidia’s central role in the AI boom, instability at the company risks triggering broader repercussions across global markets.

Earlier in the day, US equities closed Wednesday’s regular session higher, with the Nasdaq Composite and S&P 500 gaining 1.6% and 1.31%, respectively, while the Dow Jones Industrial Average advanced 0.49%. That rally was bolstered by a 25% surge in AI computing firm CoreWeave on the back of an optimistic business outlook, which helped reinforce investor confidence in the wider AI sector.

US bond trading pauses as Veterans Day shuts Treasury market

According to HSBC, activity in the US rates complex was muted midweek as “the US Treasury market was closed in observance of Veterans Day,” temporarily removing a key reference point for bond pricing and cross-asset flows.