Dow Jones futures hold steady against backdrop of hawkish Fed rate outlook and Nvidia leadership turmoil

• Hot US CPI figures lifted market expectations of a December Fed rate rise to nearly 91%, leaving US index futures under pressure.
• Reports of leadership turmoil and the possible removal of CEO Jensen Huang sent Nvidia shares down over 8.5% in after-hours trading.
• A 25% jump in CoreWeave supported the Nasdaq and S&P 500 as Wednesday’s regular session ended higher.

With US Consumer Price Index (CPI) inflation exceeding expectations and encouraging a more hawkish view of Federal Reserve (Fed) policy, US equity futures are under pressure. During Thursday’s European trading hours, Dow Jones futures hold broadly unchanged near 52,580. S&P 500 futures, however, are down 0.43% at around 7,610, while Nasdaq 100 futures have lost 0.92% to stand near 28,210.

The stronger-than-expected US CPI release has fuelled increasingly hawkish expectations for the Federal Reserve's policy outlook, creating a difficult backdrop for US equity futures.

A December rate rise now carries a probability of nearly 91% in market pricing, according to the CME FedWatch Tool. Traders increased their bets after Fed Governor Christopher Waller said earlier this week that he would back a quarter-point increase, or even a half-point rise should inflation deteriorate.

Renewed selling in Nvidia weighed on sentiment as reports of possible leadership turmoil at the chipmaker prompted greater caution. Its shares lost more than 8.5% in after-hours trading after The New York Times reported allegations of a relationship between CEO Jensen Huang and a company executive. Separately, The Wall Street Journal reported that the board was preparing to remove him. With Nvidia playing a central part in the AI boom, instability within the company could have wider consequences for global markets.

Before that, Wednesday’s regular US equity session had ended with gains of 1.6% for the Nasdaq Composite, 1.31% for the S&P 500 and 0.49% for the Dow Jones Industrial Average. Helping to underpin the advance was a 25% rise in AI computing company CoreWeave, whose upbeat business outlook strengthened investor confidence across the broader AI sector.

US bond trading halts with Treasury market closed for Veterans Day

Midweek activity across US interest rate markets was subdued, according to HSBC, because “the US Treasury market was closed in observance of Veterans Day,” leaving bond pricing and cross-asset flows temporarily without a key reference point.