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) shares plunged over 8% in after-hours trading following reports that the board is preparing to oust CEO Jensen Huang amid an investigation into alleged extramarital affairs and potential foreign intelligence risks.
- Two oil tankers reportedly exploded in the Strait of Hormuz after hitting naval mines while navigating what Iranian media described as an "unauthorized route," heightening global energy security fears.
- Hon Hai Precision (2317), also known as Foxconn, reported a 34% surge in Q3 net profit to NT$77.52 billion, comfortably beating analyst estimates of NT$70.26 billion due to robust AI server demand.
- Hapag-Lloyd (HLAG) and Telefónica (TEF) both raised their full-year 2026 outlooks following strong third-quarter performances driven by higher freight rates and service revenue growth, respectively.
- Munich Re (MUV2) beat Q3 profit expectations with €1.74 billion and raised its full-year profit guidance to €6.6 billion, citing lower-than-expected major losses in its reinsurance segment.
Nvidia Turmoil and Market Contagion
The technology sector faced significant pressure on Thursday as reports surfaced that the board of Nvidia (NVDA) is moving to remove its co-founder and CEO, Jensen Huang. The move follows an independent investigation into Huang's admitted infidelity and a second alleged relationship with a subordinate, Kimberly Powell, the company's VP of healthcare. Investors reacted sharply to the leadership vacuum at the world's most valuable chipmaker, sending the stock down to approximately $159 in extended trading.
The scandal has broader implications beyond corporate governance, as one of the relationships involved an executive at a Singapore-based firm who is allegedly an asset of China's Ministry of State Security. While the board stated it has no evidence that company secrets were compromised, the uncertainty has already triggered rare analyst downgrades. The turmoil overshadowed a strong earnings report from Nvidia's primary manufacturing partner, Hon Hai Precision (2317), which saw its own shares end a two-day rally in Seoul and Taipei as regional markets braced for Nasdaq futures volatility.
Geopolitical Escalation in the Strait of Hormuz
Energy markets are on high alert following reports from the Islamic Revolutionary Guard Corps (IRGC) that two supertankers exploded in the Strait of Hormuz. According to Iranian state media, the vessels were traveling through "restricted routes" with their navigation systems disabled when they struck naval mines. The IRGC claimed the tankers were being escorted by U.S. fighter jets, a claim that has not been independently verified by U.S. Central Command (CENTCOM).
The incident marks a severe escalation in the strategic waterway, through which a fifth of the world's oil passes. In response to the growing volatility in the Middle East, Indonesia's state energy firm Pertamina is reportedly accelerating its pursuit of oil field acquisitions in South America, specifically targeting assets in Guyana and Suriname. This move is intended to diversify supply chains and reduce the nation's reliance on shipments transiting the high-risk Persian Gulf region.
Corporate Earnings Beat and Guidance Hikes
Despite the geopolitical and tech-sector headwinds, several European blue-chip companies reported resilient third-quarter results. Telefónica (TEF) posted revenue of €8.43 billion, beating estimates, and subsequently boosted its full-year adjusted EBITDA outlook. The Spanish telecom giant cited strong performance in its home market and Brazil as primary growth drivers.
In the shipping sector, Hapag-Lloyd (HLAG) raised its full-year earnings guidance for the third time this year. The company reported a Q3 EBITDA of $1.7 billion, benefiting from elevated freight rates caused by ongoing Red Sea rerouting and port congestion. Similarly, Munich Re (MUV2) confirmed it is on track for a record year, raising its 2026 profit target to €6.6 billion after a "pleasing" operating performance across all business segments and a strong investment result.
Automated market updates written with AI from market data and news wire reports, published without human review.