Good morning NYC. Key highlights for 2026-11-12:
- Nvidia CEO Jensen Huang faces likely ouster following revelations of multiple affairs and spy scandal, sending the stock lower but creating immediate opportunities for competitors AMD and Broadcom while the broader AI trade shows signs of reshuffling rather than collapsing.
- US home builders drastically cut October new housing starts 22% below September levels (versus a normal 3% seasonal decline), signaling expectations that spring 2027 will be weak or worse as mortgage rates remain stuck above 7% and Treasury yields above 5%.
- Young Chinese consumers are decisively shifting away from luxury labels toward better-value alternatives, driving Coach and Ralph Lauren sales in China up over 30% as young shoppers reject premium brands.
- European indices reached new all-time highs with the Stoxx 600 and FTSE 100 near record levels as US stocks bounced back following upbeat earnings, though Nvidia's turmoil temporarily halted the tech rally.
- Private credit providers like Apollo Global Management are enabling major AI investments including Anthropic's $90B IPO, which analysts view as a critical "Jenga block" determining the next phase of the AI trade's viability.