Asian markets rebound as Nvidia probes CEO affair amid AI regulatory fears

Key points

• Taiwan’s Taiex index closed up 4.94 percent, leading Asian market gains, while Japan’s Nikkei 225 rose 2.33 percent.
• Nvidia’s board launched an independent investigation into CEO Jensen Huang after reports he had a relationship with a woman accused of being a Chinese spy.
• The previous week’s tech rout was triggered by a $2.5 trillion Wall Street sell-off following Democratic victories in US midterm elections, raising fears of stricter AI and data center regulations.
• Nvidia shares fell over 4 percent in pre-market trading, while other US chipmakers like Intel and Qualcomm also declined slightly.
• Brent crude oil prices fell 2 percent to $96.29 per barrel after President Trump indicated he was unlikely to order fresh attacks on Iran.

Background

Global tech stocks experienced a severe sell-off in early November 2026, with the Nasdaq dropping 5.5 percent and Asian indices falling sharply. This crash was driven by fears that Democratic midterm victories would restrict AI data center development and increase regulatory scrutiny. Prior to this volatility, the Nasdaq had hit a record high in October 2026 despite rising bond yields. The current market instability follows a period of strong performance, with investors now reassessing AI infrastructure costs and policy risks.

How outlets are covering it

Al Jazeera emphasizes the rebound in Asian markets as a recovery from the previous week’s tech rout, attributing the initial sell-off to tighter financial conditions and uncertainty over AI build-outs following US midterm results. Yahoo Finance highlights the fragility of the mood, noting that Nvidia’s internal investigation adds to unease over AI, while pointing to rising interest rate expectations and a strong US jobs report as key factors. CNBC focuses on the specific impact of the Nvidia probe, noting that while chip stocks like TSMC and ASML rose in Asia, US chipmakers fell in pre-market trading, and analysts warn that if Huang’s position is endangered, it could disrupt support for other semiconductor companies. All sources agree that AI demand remains strong, but there is divergence on the immediate impact of the Nvidia scandal and regulatory fears.

Why it matters

The volatility in tech stocks reflects broader concerns about AI infrastructure costs, regulatory risks, and geopolitical tensions. The Nvidia probe could impact the company’s leadership and its relationships with suppliers, potentially affecting the wider semiconductor industry. Rising interest rate expectations and strong US jobs data may further pressure valuations, while oil price movements influence inflation and economic growth. Investors are closely watching earnings reports from tech companies to assess the profitability of AI ambitions amid these uncertainties.

What to watch

Market attention will turn to US CPI numbers on Tuesday, with bets for a December Federal Reserve rate hike rising after a strong jobs report. Earnings reports from tech companies like CoreWeave, Applied Materials, and Cisco Systems are due this week, which will test the profitability of AI ambitions. The outcome of the Nvidia investigation into CEO Jensen Huang will be closely monitored for potential impacts on the company’s leadership and the broader semiconductor sector. Oil prices may continue to ease if talks to end the conflict with Iran progress, but elevated prices remain a concern for the global economy.