Hello Capitalists!
Get the edge on what you need to know today:
Capitalist Insider: Megaspeed’s China smuggling network mapped in Nvidia probe
Scott Bessent blindsides Lutnick in Situation Room over China chip leak
Global Microsoft outage drags into Friday as recovery still stalled
Huang called her a deer in the headlights. Now Kress runs Nvidia
“Bring back THE Boss”: Nvidia staff petition for Huang return
Scott Bessent blindsides Lutnick in Situation Room over China chip leak
Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick in the Situation Room over why Nvidia customer Megaspeed remained off the Entity List despite repeated approvals.
Situation Room exchange: Bessent asked why Megaspeed was not listed; Lutnick stammered and said he did not know and would look into it.
Repeated stalling: Axios sources said Trump approved action on three occasions in May, August, and Nov. 5, but Lutnick delayed each time.
Oval Office push: The group moved to the Oval, Trump called Musk who sided with controls, and Trump said “Let’s get it done,” yet Lutnick later proposed more options.
Denial and probes: A Commerce spokesperson denied the confrontation; Kessler reportedly halted a Megaspeed probe after Nvidia contact, and DOJ has taken over related investigations.
Aides blame inaction: Trump aides pointed to Lutnick over failure to act on diversion concerns despite earlier approvals.
Chip volume large: Megaspeed has purchased more than 4.8 billion dollars of advanced Nvidia chips since June 2024, according to a Democratic letter.
Voluntary testimony: Lutnick agreed to appear before the Senate Banking Committee as the chip-sales scrutiny intensified.
Your money matters.
We are not going anywhere.
The climb ahead is steep and the market can be cruel. But Americans built fortunes from raw ambition! The railroad barons who opened a continent, the oil wildcatters who drilled through dry holes until the gusher hit, the traders who turned American free enterprise into the world’s capital of capital.
They went through worse and they bet everything on the American idea that markets and drive create wealth. We will not watch that edge get dulled.
We press for prosperity every session, even through the drawdowns, the way the builders of this country did.
All of us here at The Capitalist appreciate your support, your loyalty and time you take to read us everyday, so we make this promise to you.
Your money matters. We will staff the desks that bring you the news and information that matters so you can do what you do best, build your American Dream.
We are not going anywhere.
Capitalist Insider: Megaspeed’s China smuggling network mapped in Nvidia probe
Hello Capitalist Insiders!
Global Microsoft outage drags into Friday as recovery still stalled
A global Microsoft outage continued Friday, weighing on the stock as traders also digested the Nvidia leadership change and inflation data.
Second-day impact: The disruption left Microsoft shares down roughly 2.7 percent in early trading.
Broader tape mixed: Futures rose overall but the outage added pressure on large-cap tech alongside the Nvidia story.
Recovery efforts: Reports noted ongoing work to restore services for thousands of users.
Market focus split: Traders balanced the outage against the cooler PPI print and Nvidia stabilization.
Nvidia plunge drags indexes lower as AI trade cracks
Major U.S. indexes closed lower Thursday after Nvidia’s leadership shock sent shares plunging at the open, though dip buyers limited the damage by the close.
Open plunge severe: Nvidia fell as much as 14 percent early, pulling the Nasdaq and S&P 500 lower before partial recovery.
Close losses modest: The Dow, S&P 500 and Nasdaq each finished down about 0.4 percent as the market digested the exit and higher yields.
Rotation visible: Cash moved into other chip and AI names while small caps, biotechs and defense lagged.
Futures rebound Friday: Early Friday futures rose as traders looked past the shock toward a cooler producer-price reading.
Democrats demand records as Huang agrees to testify
Senators Elizabeth Warren and Chris Coons told officials to preserve every record of administration contacts with Jensen Huang by Nov. 17 as Congress prepares hearings.
Preserve directive: The letter seeks call transcripts, China-trip memos and details of the halted Megaspeed probe, with written confirmation required.
Spy status open: Attorney General Todd Blanche said neither DOJ nor FBI has confirmed whether Alice Huang was a spy, though an investigation continues.
Huang to appear: The former CEO has agreed to testify before Congress ahead of Thanksgiving on the relationship and chip issues.
Scrutiny widens: Lawmakers are examining what the administration knew about the affair and any export-control implications.
Huang called her a deer in the headlights. Now Kress runs Nvidia
Interim CEO Colette Kress takes charge of Nvidia after Huang previously belittled her dealmaking skills at a summer meeting, according to reporting on the leadership handoff.
Long finance tenure: Kress has served as CFO since 2013 after earlier roles at Cisco and Microsoft and holds substantial Nvidia equity.
Board chair shift: Harvey Jones, a director since 1993, becomes the company’s first board chair as the search for a permanent chief begins.
Internal skepticism: Huang had questioned some of her deal decisions and described her as a deer in the headlights, the Wall Street Journal reported.
Employee note: Kress and Jones thanked staff for resilience and dedication in an email after the resignation.
AI financing bet tested without Huang at Nvidia
Jensen Huang’s exit puts the roughly 500 billion dollar AI financing vision and related circular deals under new scrutiny as investors watch whether support continues under interim leadership.
Chip-to-debt plan: Huang had promoted turning AI processors into tradable securities; the transition raises questions about follow-through.
Neocloud exposure: Nvidia has backed parts of the buildout through investments, commercial commitments and supplier relationships that a new chief may limit.
Circular structure: Reporting described Nvidia funding landlords, backstopping tenants and selling chips into the same ecosystem.
Kress test: The interim CEO now oversees the web of commitments while the permanent search continues.
Goldman still sees S&P 500 at 8,700 next year
Goldman Sachs forecasts the S&P 500 reaching 8,700 within a year even as it expects slower earnings growth and residual risks after the recent selloff.
Valuation support: Strategists pointed to cheaper multiples following the pullback as a reason the bull case remains intact.
Hyperscaler view: The firm reportedly sees AI hyperscalers as relatively defensive after the tech rout.
Upside estimate: One framing put the potential advance near 14 percent over the next 12 months.
Risks acknowledged: The call includes slower profit growth and possible volatility along the path to the target.
“Bring back THE Boss”: Nvidia staff petition for Huang return
Some Nvidia staff have urged the board to consider bringing Jensen Huang back, while prediction markets weigh internal candidates and even divorce odds after the resignation.
Internal post: An employee message asking the board to weigh staff views and reinstate Huang gathered more than 1,600 comments.
Kalshi odds: Traders on Kalshi have speculated that longtime executive Ian Buck could replace Huang as CEO.
Buck candidacy: Piper Sandler floated Buck, a 22-year veteran leading hyperscaler and high-performance computing, as a strong internal option.
Divorce pricing: Prediction markets put the chance of a Huang divorce near 37 percent amid the scandal coverage.
Are we seeing a Democ rats 🐀 like pissing contest ??