Stock market: Europe set for a cautious start, with the spotlight on Nvidia and Huang’s possible departure

AI sector in the spotlight. Gold below $4,000, crude oil weak

(Il Sole 24 Ore Radiocor) - European stock markets are set to open with a cautious rise, following yesterday’s session on Wall Street, where indices were driven by strong gains from CoreWeave (+26.7 per cent) on the back of its earnings report and a rebound from Nvidia (+5 per cent), which had seen two consecutive sessions of sharp declines. Consequently, Euro Stoxx 50 futures are up 0.23 per cent, with other European indices at similar levels, with the exception of the FTSE MIB, which is trading flat (-0.04 per cent).

The technology sector is still in the spotlight. The prospect of Jensen Huang potentially stepping down as CEO of Nvidia has triggered a fresh stress test for the artificial intelligence sector, with the Santa Clara-based giant’s shares falling by over 8 per cent in US after-hours trading and Asian stock markets in negative territory. The company’s board of directors met to discuss Huang’s future. “Investors must now take the possibility of a change at the top much more seriously,” Saxo Markets notes. According to analysts, the executive’s potential departure would pose investment risks and raise questions about his succession.

On the macroeconomic front, attention is focused on the ECB’s economic bulletin and the weekly claims for unemployment benefits in the United States, a useful indicator for assessing the health of the US labour market. This figure takes on particular significance in the context of Fed policy, following October’s higher-than-expected rise in inflation, which has fuelled speculation about a rate rise in December. According to the CME FedWatch Tool, the probability of a 25-basis-point rise currently stands at over 90 per cent, whilst more than 9 per cent of the market is pricing in a 50-basis-point hike.

Meanwhile, the quarterly results season continues. Poste Italiane released its results this morning, showing growth in revenue and profits, and confirming its upwardly revised guidance for the full 2026 financial year on a stand-alone basis. Technoprobe is also in the spotlight, having announced its results for the first nine months yesterday after the markets closed, with revenue and EBITDA on the rise but a more cautious outlook.