US Open: Wall Street Sentiment Weakens 📉 AMD and Broadcom Benefit from Nvidia’s Sell-Off?

US indices are trading lower after the opening bell, with the Nasdaq 100 down 1.2% and the S&P 500 off nearly 0.7%. Markets are being pressured by an almost 12% drop in Nvidia shares, while Donald Trump’s comments suggest that the outlook for negotiations with Iran remains uncertain, and Fed’s Hammack indicated that further rate hikes will be needed in the US. Outside equities, Bitcoin is also posting sizable losses, falling below $72,000 as investors price in the prospect of tighter US monetary policy.

US500 chart (D1 interval)

S&P 500 futures are having a weaker session today and have lost momentum after the recent rebound, which erased almost three-quarters of last Thursday’s decline.

Source: XTB

• Broadcom and AMD: Shares of Broadcom and AMD are up around 2% after the market open following Jensen Huang’s resignation as Nvidia CEO. Investors may be assuming that the transition period at Nvidia could give competitors more room to fight for market share and customers. Nvidia shares, meanwhile, are down around 10%, further highlighting the relative strength of its rivals. Nvidia’s long-time CFO, Colette Kress, has been appointed interim CEO.

• Nebius: Shares of Nebius, one of the largest neocloud companies providing computing capacity, are down nearly 16% despite third-quarter revenue beating analysts’ expectations. The sell-off is mainly driven by disappointing guidance, which came in below market expectations. The move follows a gain of more than 15% during Wednesday’s session, which had been supported by results from another neocloud company, CoreWeave (CRWV.US). The reaction suggests that investors are currently placing more weight on future guidance than on the headline earnings beat itself.

• Oil and energy stocks: Oil prices are rising after Donald Trump said that the US does not need a deal with Iran, reigniting concerns about geopolitical risk and potential disruptions around the Strait of Hormuz. WTI futures are up more than 1% above $87 per barrel, while Brent is trading above $94. Higher oil prices are also supporting energy stocks such as Chevron and ExxonMobil, which are gaining around 1%. The move adds another inflationary risk to an environment already shaped by increasingly hawkish expectations for the Fed.

Hammack: Fed should continue raising rates and move policy into restrictive territory

Fed’s Beth Hammack delivered a clearly hawkish message, saying that the Federal Reserve should continue raising interest rates in order to move monetary policy into a more restrictive stance. In her view, recent data show that price pressures are broadening, while energy is becoming an additional source of risk through secondary inflation effects. Hammack also stressed that the Fed is not currently “behind the curve,” but warned that acting too late could eventually require larger and more aggressive moves. She therefore prefers smaller, steadier rate increases, which she sees as less disruptive to the economy.

She described the labour market as static rather than healthy, pointing to a lack of dynamism and limited turnover. In her view, one of the key risks is that a more inflationary mindset becomes entrenched in the economy, making it harder to bring inflation back to target. Hammack also said that she approaches every FOMC meeting with an open mind. Overall, her comments support the case for further monetary tightening and remain negative for bonds and rate-sensitive segments of the equity market.

USDIDX chart (D1 interval)