Eclipse Solis☀️

Average Joe how loves to study and build things. Especially loves to study economics and finance. Also, I love to do technical analyses on the markets for fun.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: Jensen Huang reportedly had an “intimate relationship” with a second Nvidia, $NVDA, employee, per Reuters.

This marks the third alleged affair for the now-former Nvidia CEO.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: SpaceX, $SPCX, and Tesla, $TSLA, could merge as soon as December in what would be the largest merger of all time, per Bloomberg.

The companies’ boards and advisors are now reportedly “hammering out” the terms of the agreement.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: The S&P 500 erases all losses and turns green as investors buy the dip in Nvidia, $NVDA.

Nvidia has now erased more than half of its loss on the day.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: Nvidia stock, $NVDA, pares losses, rising back above $163/share, as investors buy the dip after Jensen Huang resigns.

The stock has now erased half of its loss on the day.

Nvidia’s future remains highly uncertain.

[The Kobeissi Letter @KobeissiLetter]

Jensen Huang and the Nvidia board just made a massive mistake.

He should not have resigned.

The board should have taken the time to conduct a thorough investigation, consult with shareholders, and carefully evaluate the long-term implications of this decision.

There is no clear replacement for Jensen Huang, and we believe his departure will ultimately be a net negative for Nvidia, $NVDA, and its shareholders.

This will go down as the most costly mistake of the AI Revolution.

[Morning Brew ☕️ @MorningBrew]

> Be Jensen Huang
> start as a dishwasher at Denny’s
> sketch idea out for Nvidia over coffee
> turn it into biggest company in the world
> don the leather jacket your wife got you
> $5 trillion market cap
> become a rockstar
> lose yourself, have multiple affairs
> one with a Chinese spy
> one with a VP who reports to you
> stock starts dropping
> no clear successor
> hundreds of billions gone
> resign effective immediately
> no statement from you, board forced you out
> AI godfather mode deactivated
> haters suddenly everywhere
> leather jacket can't save you now
> Be Jensen Huang?
> No.
> Bye Jensen Huang

[Morning Brew ☕️ @MorningBrew]

Nvidia shareholders trying not to panic sell

[The Kobeissi Letter @KobeissiLetter]

BREAKING: US neocloud stocks collapse after Jensen Huang resigns as CEO of Nvidia:

1. Nebius, $NBIS: -21%
2. CoreWeave, $CRWV: -14%
3. Roundhill Neocloud ETF, $NEO: -13%
4. IREN, $IREN: -9%
5. Cipher Digital, $CIFR: -9%
6. Applied Digital, $APLD: -8%
7. TeraWulf, $WULF: -7%
8. Core Scientific, $CORZ: -5%

Nasdaq 100 futures extend losses to -1.5% on the day.

[The Kobeissi Letter @KobeissiLetter]

Jensen Huang has now had the most expensive affair in history.

Between the revelation of both affairs, Nvidia stock, $NVDA, has erased -$700 billion in market cap.

This means Nvidia has lost -$2.1 trillion in market cap since October 6th, in just 26 trading days.

That’s -$81 billion per day for 26 days straight.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: Nvidia, $NVDA, is now working with an "outside firm" to find a new CEO to replace Jensen Huang, per Bloomberg.

The company is also reportedly weighing naming a temporary CEO while searching for a replacement.

[The Kobeissi Letter @KobeissiLetter]

The million dollar question:

Will Jensen Huang deny allegations of the second affair reported by the New York Times just now?

If not, we are revising our outlook to a near-certain likelihood (>90%) that Huang will be removed from his role as CEO of Nvidia.

This is a material shift in the backdrop for the most important component of the AI Revolution.

The market is now pricing-in his exit.

[Morning Brew ☕️ @MorningBrew]

It’s actually happening

[The Kobeissi Letter @KobeissiLetter]

BREAKING: Nvidia, $NVDA, is preparing to fire Jensen Huang, its founder and CEO, after allegations of a second affair have surfaced, per WSJ.

The board is preparing to meet as soon as today to determine his future.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: Nvidia stock, $NVDA, crashes over -10% on reports that the company’s board is preparing to fire him from his role as CEO after news of a second affair.

[VolumeLeaders @VolumeLeaders]

$MGK (Growth) - 4th largest trade. Top holdings include all the big dogs: $NVDA, $AAPL, $MSFT

Speaking of which, we also got some $MAGS.

Not pictured: Other large trades in growth ETFs which fired w/ size today. $VUG, $VOOG, $QGRW

[The Kobeissi Letter @KobeissiLetter]

US pension funds are heavily concentrated in technology stocks:

The technology sector accounts for 44% of total US pension fund equity allocation, according to a Bloomberg analysis of more than 70 pension funds.

This percentage has more than doubled since 2015.

Pension fund equity allocation to technology is now larger than that of the next 3 sectors combined.

By comparison, Financials represent 16%, followed by Healthcare at 12%, Industrials at 11%, and Consumer stocks at 10%.

To put this into perspective, the Consumer sector was these funds' largest allocation in 2014, at ~20%.

US pension funds are more exposed to technology stocks than ever.

[unusualwhales.com Snorlax (๑❛ ڡ ❛๑) @snorlax_uw]

$CLX

[Brew Markets @brewmarkets]

We survived the stock market crash of 2026.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: The perceived probability among US consumers that the unemployment rate will be higher in 1 year increased +1.5 percentage points in October, to 45.3%, the highest since April 2020.

This also marks the 3rd-highest reading on record, surpassed only by the initial pandemic surge in March and April 2020.

Since January 2025, this metric has risen +11.3 percentage points.

Among age groups, consumers under 40 are the most pessimistic, with the perceived probability of higher unemployment at 48.9%, the 2nd-highest reading on record.

By income, this figure among those earning over $100,000 rose to 51.5%, the 2nd-highest reading on record, surpassed only by the 53.9% recorded in March 2020.

Americans are worried about their jobs.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: The Nasdaq 100 surges over +3% on the day as short covering accelerates.

This puts the Nasdaq 100 up +9% from its low seen just 6 days ago.