The Nvidia scandal has raised national security concerns, as CEO Jensen Huang admitted to having an affair with Alice Huang, who has ties to Megaspeed, a client of Nvidia. Megaspeed is accused of assisting sanctioned Chinese companies in acquiring AI chips. U.S. intelligence agencies are investigating whether Alice Huang passed sensitive information to Beijing. Nvidia’s board has initiated an independent inquiry and stated that there is no evidence to suggest that any confidential data was compromised. However, three Republican chairmen of House committees are requesting a closed-door testimony from Huang on November 18.
Meanwhile, tensions involving Iran have intensified. Former President Donald Trump, in a CNN interview, indicated that a return to open warfare is “highly unlikely,” contingent upon Tehran agreeing to a stringent nuclear deal and the reopening of the Strait of Hormuz. Despite this, he pointed out the presence of three U.S. aircraft carriers in the region. CENTCOM has formulated Task Force Iron Gate to obstruct Iran’s land routes while maintaining a naval blockade that has been active for several months.
Fresh attacks on energy infrastructure continued over the weekend, even as discussions involving Qatar took place. Houthi drones targeted the Aramco skyscraper in Riyadh’s business district, while an alleged Iranian drone strike disrupted operations at the Khor Mor gas field in Iraq. Under growing pressure following his electoral defeat, Trump faces demands to end military engagement, attributed in part to soaring fuel prices affecting the Republican Party’s performance.
In trade relations, recent developments between the U.S. and China suggest a temporary easing of tensions. Beijing has postponed the reinstatement of a 24% retaliatory tariff on U.S. goods and halted special port fees ahead of the APEC summit. On the U.S. side, Democrats plan to challenge Trump’s tariffs once they assume Congressional control, beginning with Canada.
Tensions are brewing in Europe, where instances of hybrid threats and social unrest have emerged. Recent attacks by hackers have targeted supermarket cold storage units across several countries, elevating temperatures dangerously high. Concurrently, false bomb threats have disrupted multiple flights. Protests against rising living costs in France continued into a fourth weekend, with official reports indicating 146,000 demonstrators took to the streets and over 360 arrests were made. Spain is gearing up for early elections on November 29, with expectations that the far-right Vox party will gain traction.
In economic news, data from China revealed that producer price index (PPI) inflation surged to 5.7% in October, exceeding expectations and hitting a high not seen since June 2022. However, consumer price inflation fell to 0.7%. The weak domestic demand and rising production costs are curbing Chinese companies’ margins, with no signs of stabilization in the real estate sector. In Japan, authorities confirmed a significant one-day currency intervention valued at approximately $50 billion to support the yen.
Markets in the U.S. reacted to the ongoing economic shifts, with Wall Street experiencing its worst week since April 2025. Following the elections, the Nasdaq 100 saw a significant decline in market value as fears grew regarding potential regulatory changes under a Democratic administration. Although Friday witnessed a partial recovery, the Nasdaq Composite still shows notable volatility, with on-going discussions among analysts regarding future trends in capital expenditures and margin outlooks.
In Asia, the chip market appeared to stabilize, led by Taiwan’s Taiex index which rose 4.9%, breaking a week-long losing streak. This rebound followed announcements from regulators regarding short-selling restrictions and a stabilization fund. South Korean memory chipmakers also benefited from renewed investor confidence. The Nikkei 225 in Japan climbed approximately 2.5%, aided by gains in cyclical stocks and semiconductors.
Looking ahead, the upcoming week will feature significant economic indicators, including U.S. CPI and PPI reports, and Congressional commentary on monetary policy. Nvidia’s stock also remains in focus, with quarterly earnings scheduled for November 17 and a congressional hearing on November 18 that could further impact investor sentiment.
