Week in Review: Markets Managed to Shine Despite Nvidia's Dark Shadow

When one man's resignation at one technology company dominates the market week, it begs the question: what did we miss?

Oil prices fell 1.4% to near $89 per barrel last week, with no resolution of the U.S.-Iran conflict. Cool PPI data offset hot CPI data, but the U.S. inflation situation all but cements a December interest rate hike, according to the CME FedWatch tool. The U.S dollar and Treasury yields spiked higher, and major indexes continued a post midterm-election rally.

But the size of Nvidia (NVDA) and the international magnitude of allegations, which on Thursday led to the resignation of CEO and co-founder Jensen Huang, dominated markets this past week. The nearly 13% decline in Nvidia shares for the week stood in stark contrast to market strength. The tech-heavy Nasdaq-100 (NDX) was up 3.53% for the week and the S&P 500 (SPX) rose 2.51%. The Dow Jones Industrial Average ($DJI) rose 2.07%. The small-cap Russell 2000 (RUT) also moved higher, up 1.32%.

The Jensen Huang Nvidia recap

Born in Taiwan, Huang immigrated to the U.S. as a child and eventually co-founded Nvidia in 1993. Today, it is among the largest companies in the S&P 500, with a market capitalization of $3.93 trillion as of Friday's close. In the index, that rivals Microsoft (MSFT) ($3.89 trillion); only Apple (AAPL), ($5.18 trillion), is larger.

Here’s the abbreviated recap: On October 29, The New York Times reported that U.S. intelligence officials were investigating Alice Huang, a Chinese citizen associated with Singapore-based Megaspeed, an Nvidia chip customer, for possibly steering advanced Nvidia A.I. chips to China. In addition, U.S. investigators allege she had a close relationship with Jensen Huang (no relation) and are investigating if Alice Huang works for the Chinese government. In addition, The New York Times reported Wednesday that Jensen Huang allegedly had a relationship with an executive who reported to him. He resigned Thursday. CFO Colette Kress was named interim CEO, and she will preside over Nvidia’s earnings report Tuesday, Nov. 17.

What follows are some Schwab Network discussions on two themes: portfolio strategy and varied thoughts on the tech trade and Nvidia's prospects after the CEO tumult.

More on sector rotation and portfolio structure: 

• Ryan Detrick says the "lifeblood" of a bull market is rotation and discusses PHLX Semiconductor Index (SOX) upside: Detrick: NVDA Stalls, AI Chip Stocks in 'Buying Thrust' | Market On Close
• Nathan Moser says easing inflation could benefit consumers and small caps: PLNT, RIVN & the Case for a Small-Cap Comeback | Market On Close 
• Robert Minter discusses oil prices, central bank gold purchases, and economic data: Aberdeen Investments: What's Next for Oil, Gold with Risks 'Under the Surface?' 
• Chris Ward says technology "has to take a breath” and discusses healthcare and dividends: Ward: Healthcare, Dividends Strong as Tech Takes a 'Breath' | Trading 360 
• Don Schreiber talks about dividends, the power of compounding, and the risk of AI portfolio concentration: WBI CEO Warns the AI Concentration Trap Echoes the Dot Com Bust 
• Ben Emons discusses the path forward for the Fed: Ben Emons: 50 Basis-Point Hike 'Debatable' with 'Hotter and Hotter' Inflation 

More on Nvidia and the impact Huang's departure could have on the chip sector and the tech trade,

Read Can Nvidia Stem Share Decline as Competitors Step into Huang Void? and watch Featured Clips: 

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, futures commission merchant, or forex dealer member.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.