{"id":74575,"date":"2026-11-12T10:08:18","date_gmt":"2026-11-12T14:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-ceo-jensen-huang-resigns-amid-scandal-feds-hammack-signals-hawkish-path\/74575\/"},"modified":"2026-11-12T10:08:18","modified_gmt":"2026-11-12T14:08:18","slug":"nvidia-ceo-jensen-huang-resigns-amid-scandal-feds-hammack-signals-hawkish-path","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-ceo-jensen-huang-resigns-amid-scandal-feds-hammack-signals-hawkish-path\/74575\/","title":{"rendered":"Nvidia CEO Jensen Huang Resigns Amid Scandal; Fed\u2019s Hammack Signals Hawkish Path"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) CEO Jensen Huang has resigned effective immediately<\/strong> following allegations of extramarital affairs and potential national security risks; <strong>CFO Colette Kress has been named interim CEO.<\/strong><\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> shares plunged as much as 11%<\/strong> in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> trading, erasing approximately <strong>$350 billion in market value<\/strong>, while AI-partner CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>) saw its shares drop 12%.<\/li>\n<li><strong>Cleveland Fed President Beth Hammack signaled a hawkish outlook<\/strong>, stating the Fed needs to move rates higher into &quot;restrictive&quot; territory to combat broadening price pressures.<\/li>\n<li><strong>US Initial Jobless Claims rose to 200,000<\/strong> for the week ending Nov. 7, slightly exceeding expectations of 194,000, though the labor market remains historically tight.<\/li>\n<li><strong>USTR Jamieson Greer emphasized that <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> is a &quot;structurally important&quot; company<\/strong> and suggested that tech export controls remain under active review to keep &quot;crown jewel&quot; technology in U.S. and ally hands.<\/li>\n<\/ul>\n<h2>Nvidia Leadership Shake-up and Market Fallout<\/h2>\n<p>In a stunning development for the semiconductor industry, <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> announced that co-founder <strong>Jensen Huang has resigned<\/strong> as President, CEO, and board member. The resignation follows a board investigation into reports of extramarital affairs, including one with a woman alleged to have ties to Chinese intelligence. The board has appointed long-time CFO <strong>Colette Kress as interim CEO<\/strong> while it initiates a search for a permanent successor.<\/p>\n<p>The news sent shockwaves through the technology sector, with <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> shares falling <strong>11% to a <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> low<\/strong>. The decline spread to other AI-related firms, including <strong>CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>)<\/strong>, which saw its shares tumble <strong>12%<\/strong>. Conversely, <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/AMD\" data-internallinksmanager029f6b8e52c=\"16\" title=\"stock: AMD\">AMD<\/a> (<a href=\"\/stock\/AMD\">AMD<\/a>)<\/strong> shares rose <strong>0.7%<\/strong> as analysts at William Blair upgraded the stock, citing a potential &quot;leadership vacuum&quot; at its primary competitor.<\/p>\n<h2>Fed\u2019s Hammack Warns of Persistent Inflation<\/h2>\n<p>Federal Reserve Bank of Cleveland President <strong>Beth Hammack<\/strong> delivered a series of hawkish remarks on Thursday, asserting that the central bank has &quot;more work to do&quot; to meet its 2% inflation mandate. Hammack noted that recent data shows <strong>inflation moving in the &quot;wrong direction&quot;<\/strong> with broadening price pressures, specifically citing secondary effects from energy and the &quot;insatiable&quot; demand for AI infrastructure.<\/p>\n<p>Hammack advocated for <strong>&quot;smaller, steadier rate increases&quot;<\/strong> to reach a restrictive policy stance, arguing that this approach gives the economy time to adjust while preventing the Fed from falling &quot;behind the curve.&quot; She described the current job market as &quot;static&quot; rather than healthy, pointing to a lack of dynamism despite the Fed performing well on the employment side of its dual mandate.<\/p>\n<h2>Trade Policy and National Security Concerns<\/h2>\n<p>U.S. Trade Representative <strong>Jamieson Greer<\/strong> addressed the situation surrounding <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>, labeling it a &quot;structurally important&quot; company for national security. Greer stated that the administration is prepared to take further action on <strong>tech export controls<\/strong> if problems exist, emphasizing the need for &quot;crown jewel&quot; chips to remain in the hands of the U.S. and its allies.<\/p>\n<p>Greer also signaled a firm stance on broader trade issues, noting that the administration is prepared to take action on <strong>tariffs with Mexico<\/strong> and will discuss trade compliance with <strong>China<\/strong> next week. He highlighted that national security remains of &quot;paramount importance&quot; in all upcoming trade negotiations, including the pending deal with Canada.<\/p>\n<h2>Labor Market and Economic Indicators<\/h2>\n<p>The U.S. Department of Labor reported that <strong>initial jobless claims<\/strong> rose to <strong>200,000<\/strong> for the week ending November 7, up from a revised 191,000 the previous week. While this figure exceeded the consensus estimate of 194,000, <strong>continuing claims<\/strong> fell to <strong>1.697 million<\/strong>, lower than the anticipated 1.710 million.<\/p>\n<p>The data suggests that while new layoffs have ticked up slightly, the overall labor market remains firm, providing the Federal Reserve with continued flexibility to prioritize inflation-fighting measures. In other economic data, <strong>Canada building permits<\/strong> for September fell <strong>4.1%<\/strong>, matching analyst estimates but marking a significant reversal from the previous month&#39;s 8.8% growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) CEO Jensen Huang has resigned effective immediately following allegations of extramarital affairs and potential national security 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