Help Nvidia falls amid scrutiny of CEO Jensen Huang; Chinese inflation slows
Nvidia shares tumbled after reports of an internal investigation into CEO Jensen Huang intensified market scrutiny of the company. Concurrently, slowing Chinese inflation signalled persistent weakness in domestic demand.
An internal probe into CEO Jensen Huang created uncertainty around Nvidia's corporate leadership.
AI infrastructure faced potential political pressure and a potential stricter regulation following US Democratic midterm gains.
Public resistance mounted against data centre expansion due to excessive water and energy consumption.
Chinese headline inflation fell to 0.7%, highlighting weak consumer demand and real estate market stress.
Date: 10 November 2026 (GMT+3)
Nvidia falls amid high scrutiny on CEO Jensen Huang
Semiconductor giant Nvidia Corporation experienced market contraction in its shares amid heightened scrutiny surrounding CEO. According to a Reuters report, an internal investigation into Nvidia CEO Jensen Huang was initiated following media reports alleging a close relationship with a Chinese businesswoman who reportedly passed information to Beijing.
Against this backdrop, investors placed increased scrutiny on Nvidia's share price and corporate governance, given the company's significant reliance on intangible assets, including proprietary technologies, patents, trade secrets, and specialised technical know-how.
Additionally, Nvidia's shares logged three consecutive days of selling pressure following the Democratic victory in the US Congress. This sell-off was driven by growing market concerns that Democrats could push for tighter regulation of artificial intelligence (AI) infrastructure, including data centres. Data centres have met with significant opposition from the public across the US, as these facilities consume vast quantities of local resources, including water and electricity. Consequently, the stock has fallen by 10% over the last three trading sessions.
At market close, Nvidia shares tumbled by 4.27% to $178.67, bringing the company's market capitalisation to $4.31 trillion.
Chinese inflation rate decelerates, missing analysts' estimates
According to data published by the National Bureau of Statistics (NBS) of China, the headline inflation rate decelerated from 0.9% in September to 0.7% in October, missing analysts' expectations of 0.8%. Concurrently, the core inflation rate—which excludes the most volatile components of energy and unprocessed food—eased from 1.0% to 0.8%.
Notably, the NBS report revealed that the most pronounced drop occurred in food inflation, which fell by 2.9%, extending a contraction in prices following a 1.7% decline in the preceding month—as cited by Trading Economics. Additionally, clothing inflation eased from 1.2% to 1.1%, while healthcare price growth decelerated from 2.7% to 2.4%. Meanwhile, housing prices remained in negative territory at –0.3%, signalling that the real estate sector remains weak.
Therefore, China's economy continues to exhibit persistent weakness in domestic consumption, largely reflecting subdued consumer confidence amid the prolonged downturn in the property sector and uncertainty surrounding household income and wealth prospects. These structural vulnerabilities are further compounded by rising energy costs stemming from the ongoing US-Iran conflict in the Middle East, which are exerting additional pressure on production costs and corporate profit margins.
Following the NBS report, Chinese equity benchmarks closed mixed: the FTSE China A50 Index rose by 1.19% to 12,903 points, whereas the Hang Seng Index declined marginally (–0.06%) to 24,506 points.
Figure 1. China Inflation Rate (2025–2026). Source: Data from the National Bureau of Statistics of China; chart retrieved via Trading Economics.
Key economic events this week
Several critical economic indicators are scheduled for release this week. It is possible that market participants will be monitoring the following releases:
Monday
- China: Inflation Rate
- Germany: Balance of Trade
- Australia: NAB Business Confidence
Tuesday
- China: Balance of Trade
- US: Inflation Rate
Thursday
- United Kingdom: GDP Growth Rate
- US: Existing Home Sales
- US: EIA Crude Oil Stocks Change
Friday
- US: Producer Price Index
