Nvidia Shares Dip Amid CEO Investigation, Weekend Trading
Nvidia shares faced downward pressure over the weekend, with trading activity on alternative platforms setting the price while the Nasdaq remained closed. The stock’s price dipped by approximately 4.54% on Hyperliquid, a crypto trading platform, with a 24-hour volume of $197.9 million.
This movement occurred as Nvidia’s board announced an investigation into CEO Jensen Huang following reports of a foreign intelligence effort targeting him. The board expressed confidence in Huang, who remains in his position.
Weekend Trading and Price Discovery
With US cash markets closed, platforms like Hyperliquid and Robinhood became the primary venues for Nvidia price discovery. Rick Maeda of Laevitas noted that these markets, operating with thinner liquidity, were the first to react to the news.
Hyperliquid’s Nvidia perpetual contract, trading at around $178.48, experienced a 4.54% decline over 24 hours. Other platforms, such as Blue Ocean and Robinhood, reported smaller falls of approximately 3.4% to 3.7%.
The funding rate on Hyperliquid’s contract was 0.0023%. Dominick John of Zeus Research suggested that negative funding rates could indicate increasing short positions.
CFD brokers, including Pepperstone and Markets.com, have expanded their offerings to include 24/7 Nvidia products, providing additional avenues for trading outside traditional market hours.
The Investigation and Its Context
Nvidia’s board initiated an independent investigation on November 8 after reports emerged that Huang was the target of a foreign intelligence operation. The board stated it has no reason to believe national security or company secrets were compromised.
Huang, in an internal memo, acknowledged an extramarital affair and pledged cooperation with the review. The New York Times reported allegations that a Chinese businesswoman was recruited by China’s Ministry of State Security to gather intelligence on him, based on anonymous US government sources.
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Prediction markets have responded to the situation, with Polymarket assigning a 16% chance of Huang’s resignation or removal by the end of 2026 and Kalshi pricing his departure by January 2028 at 18%.
As US markets prepare to reopen, Nvidia’s stock movement will be closely watched, with the company’s earnings report scheduled for November 17 and Huang’s congressional appearance set for the following day.
Trading Platforms and Market forces
Hyperliquid’s Nvidia perpetual contract, listed as NVDA-USDC, operates on the platform’s HIP-3 framework. XYZ sets market parameters, while Hyperliquid handles trade execution, margin, and liquidations. The contract is cash-settled and margined in USDC, with a maximum leverage of 20x, as per DefiLlama’s listing.
Pepperstone’s NVDA-PERP contract trades alongside gold, Nasdaq 100, and S&P 500 contracts, with no expiry and a funding rate. Markets.com offers 24/7 trading on selected share CFDs, including Nvidia, while FOREX.com provides 24/5 trading on Nvidia and other Magnificent 7 share CFDs.
Robinhood, an established retail trading app, offers 24-hour trading on selected stocks and ETFs, five days a week, with overnight trading from 8 p.m. to 4 a.m. ET. The platform plans to expand its trading hours to include Saturdays, providing even more opportunities for investors to trade outside traditional market hours.
Alternative trading systems, such as Blue Ocean, play a key role in facilitating off-hours trading. Blue Ocean, used by Robinhood and other broker-dealers, has undergone significant upgrades to handle increased trading volumes, as demonstrated during the 2024 US presidential election.
Future Developments and Key Dates
As US cash trading resumes, Nvidia’s stock movement will be closely monitored. Additionally, House Republicans have requested Huang’s appearance before Congress on November 18, which may impact the stock’s trajectory.
US cash trading resumes at Monday’s open.
