This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Nvidia (NVDA) former CEO Jensen Huang reportedly had an intimate relationship with a second employee, adding to the scandal that led to his resignation.
- US Federal Budget Deficit for October 2026 reached $404.1 billion, significantly exceeding analyst estimates of $317.5 billion.
- Super Micro Computer (SMCI) issued a statement denying a relationship with Megaspeed, while confirming cooperation with US, Taiwanese, and Singaporean authorities.
- Democratic Senator Jack Reed called for a Congressional assessment on whether Nvidia is "too big to fail" and its potential systemic risk to the banking system.
- Microsoft (MSFT) and Nasdaq (NDAQ) both reported infrastructure and technical issues, with Microsoft redistributing global traffic to manage elevated loads.
Nvidia Scandal and Leadership Transition
The fallout from the resignation of Nvidia (NVDA) founder Jensen Huang intensified Thursday following reports from Reuters sources that he had an intimate relationship with a second, unnamed employee. This follows previous revelations of an affair with Kimberly Powell, the company’s VP of Health Care, and a controversial relationship with Alice Huang, an executive at Singapore-based Megaspeed whom US intelligence suspects of being a foreign asset.
Amid the turmoil, the newly appointed Nvidia CEO has reportedly scheduled a company-wide meeting for next Wednesday to address the transition. Meanwhile, Senator Jack Reed (D-RI) issued a statement urging Congress to evaluate if the chipmaker has become systemically important to the global banking system, suggesting the firm may now be "too big to fail" given its central role in AI-driven financial infrastructure.
Super Micro Denies Megaspeed Ties Amid Global Probes
Super Micro Computer (SMCI) has moved to distance itself from the ongoing Nvidia investigation, specifically denying any relationship with Megaspeed. Despite this denial, the company confirmed it has been voluntarily providing information and fully cooperating with authorities in the US, Taiwan, and Singapore.
The cooperation follows reports that the Department of Justice (DOJ) is investigating whether products from Super Micro were illicitly diverted to China. The company emphasized its responsiveness to inquiries as regulators scrutinize the supply chains of high-end AI servers equipped with restricted semiconductor technology.
US Fiscal Deficit Swells in October
The US Treasury Department reported a massive $404.1 billion budget deficit for October 2026, the first month of the new fiscal year. This figure represents a sharp increase from the $284.3 billion deficit recorded in October 2025 and far surpassed the consensus forecast of $317.5 billion.
Total outlays for the month hit $773 billion, while receipts fell to $369 billion compared to $404 billion a year prior. Analysts noted that net customs receipts dropped to $19.22 billion, a significant decline from the $31.35 billion collected in October 2025, reflecting shifting trade dynamics and lower revenue collection.
Technical Disruptions and Geopolitical Tensions
In the technology sector, Microsoft (MSFT) confirmed it has begun redistributing connection traffic across its worldwide infrastructure to mitigate "elevated load" issues impacting services. Simultaneously, Nasdaq Trading Services announced an investigation into issues affecting its email system, though no immediate impact on trading operations was reported.
On the geopolitical front, Iran's state news agency IRNA reported that the city of Sirik in the southern Hormozgan province was hit by "enemy fire." The attack was described as military in nature, though officials provided no immediate details on casualties or the specific origin of the strike, further heightening tensions in the region.
Automated market updates written with AI from market data and news wire reports, published without human review.