Dow Reaches 51,870 as Investors Cut Anthropic IPO Valuation Target
- Nvidia shares fell approximately 6% on November 9, 2026, following reports of an investigation into CEO Jensen Huang.
- The Dow Jones Industrial Average opened up 1.2% to 51,870 on Monday.
- Potential investors are discussing lowering Anthropic's IPO valuation to between $1.1 trillion and $1.3 trillion.
- Nvidia is scheduled to release its earnings report on November 17, 2026.
- The technology sector's forward P/E ratio has fallen to 17.1, lower than the overall market for the first time since 2017.
Reuters reported that Nvidia shares dropped in pre-market trading, with one report citing a 5% decline and another noting a decrease of just over 4%. Shattered.io indicated pre-market futures pointed to a drop of 4% to 5%.
The company board stated it sees no reason to believe national security or company secrets were compromised.
This investigation remains an allegation without confirmed findings of wrongdoing by Jensen Huang or Nvidia, and there is no established timeline for its conclusion.
Wall Street indices open higher on November 9
Wall Street indices opened higher on Monday, 9 November 2026, as futures traded up before the market opened. As of 8:25 a.m. ET, Dow E-minis increased 1.04% or 534 points, S&P 500 E-minis gained 0.71% or 52.5 points, and Nasdaq 100 E-minis rose 0.67% or 180.5 points.
The S&P 500 climbed 0.9% to 7,457, while the Nasdaq Composite gained 0.8%.
Anthropic IPO faces valuation pressure
The IPO is being closely watched, with some potential investors questioning whether the company can maintain its November listing schedule amid the recent decline in technology stocks.
Technology sector valuation and market weight
The technology sector has gained approximately 11 percent for the year. Its weight within the S&P 500 is currently higher than it was at the peak of the 2000 internet-stock bubble.
Major cloud and internet firms including Alphabet, Amazon, and Meta Platforms are classified in sectors other than technology, despite their heavy spending on data-center construction. Since the bull market began in October 2022, technology stocks have risen more than 200 percent, which is nearly double the overall gain of the S&P 500.
The forward price-to-earnings ratio for the technology sector declined to 17.1 as of Thursday, compared to over 32 in October 2025.
Bernstein maintains Nvidia outlook despite controversy
Bernstein maintained an Outperform rating on Nvidia with a target price of $400. The firm cautioned that the ongoing investigation could become a major distraction and result in heightened regulatory scrutiny.
Bernstein stated that some espionage-related allegations appear to have "more form than substance" but constitute a "very bad look" for the company. The firm noted that the H20 and H200 AI chips currently permitted for sale to China are lower-end, limited-quantity products that are several generations behind the most advanced offerings. These products are not being sold primarily because China is prioritizing domestic alternatives.
Bernstein warned that if Alice Huang were a spy, information could have been obtained through channels outside of Nvidia’s corporate devices. The firm also warned that headlines portraying the episode as "NVIDIA’s CEO got honeypotted by China" could provide ammunition to China-hawk members of the U.S. Congress and incoming Democrats who are critical of Jensen Huang’s relationship with President Donald Trump.
S&P 500 top gainers and losers
Top gainers on the S&P 500 as of November 7, 2026, included Airbnb at 11.67 percent, Advanced Micro Devices at 11.04 percent, Vistra at 10.55 percent, and AppLovin at 9.86 percent.
Top losers on the index as of the same date included Axon Enterprise at negative 18.18 percent, Microchip Technology at negative 10.02 percent, Coterra Energy at negative 8.62 percent, and Charter Communications at negative 6.19 percent.
Upcoming earnings and market catalysts
Nvidia is scheduled to release its earnings report after the market closes on November 17, 2026. Investors will watch this report for signs of the health of the AI trade and continued demand for AI chips.
Analysts are expected to focus on capital expenditure timing, with pressure likely for signs of customers shifting their schedules. An investigation related to Nvidia will not reach a public conclusion before the November 17 earnings report.
Cloud-computing firm CoreWeave is scheduled to report earnings on Tuesday, which could provide insight into financing for AI-infrastructure spending. Dell Technologies is set to release its earnings on November 24, 2026, with investors looking for indications of AI-related spending trends.
Political climate impacts on data center spending
Democratic victories in the U.S. midterm elections could slow spending on data centers. These facilities are essential for running artificial intelligence systems and have been a primary driver of recent market rallies.
Performance of tech stocks in 2026
SanDisk shares rose 250% in 2026, while Dell Technologies increased 160% and Micron Technology grew 140%. Nvidia shares traded between $170.24 and $178.73 on November 9, 2026, resulting in a market capitalization of approximately $4.28 trillion.
CEO Jensen Huang admitted to being unfaithful to his wife, apologized to his family and staff, and said he had fallen short of his responsibilities as CEO. Broadcom and Advanced Micro Devices each gained 5% on November 9, while ON Semiconductor rose 3%. Amazon stock increased 5%, Tesla and Alphabet each climbed more than 3%, and Microsoft added 2%.
U.S. The Nasdaq 100 index rose slightly over 1% on Friday, November 6, 2026, but concluded that week with a 5% decline.
The Chicago Tribune reported on November 6 that "AI stocks halt their brutal, worldwide sell-off". Investors remain on alert regarding technology shares, AI-related sell-offs, the Anthropic IPO, Nvidia earnings, and inflation.
Frequently Asked Questions
- US stock market outlook: AI sell-off, Anthropic IPO and Nvidia earnings keep investors on alert | Hindustan Times (hindustantimes.com)
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