ROI-Nvidia shock, shifting Fed bets and Europe's electric gamble: The financial week in five charts

Every Friday, Reuters Open Interest (ROI) ​distills the financial week into five key charts, spotlighting the major trends, ​surprises and overlooked moves that defined the past five ‌days. 1. ​ECLIPSE OF THE AI SUN

JAMIE MCGEEVER, ROI Markets Columnist: In the past month, waves of selling have engulfed the AI trade. Then came news on Monday that the board of Nvidia — the sun of the AI solar ‌system — was investigating CEO Jensen Huang over an extramarital affair with a woman alleged to be a Chinese spy. After reports of another potential affair with an Nvidia employee emerged, Huang stepped down on Thursday. Nvidia's stock has tumbled 11% this week, as of the Thursday close, leaving it 30% below its October 6 high.

Yet, despite ‌all this, the S&P 500 is only around 3% off its all-time high. Can that resilience persist? 2. REALITY CHECK

RON BOUSSO, ROI Energy Columnist: Delegates ‌at the COP31 climate summit this week pushed to accelerate global electrification, testing governments' resolve and voters' appetite for the energy transition. The logic is straightforward, but electrification is only as clean as the power that feeds it. For the EU, the ambition to become the world's first "electro-continent" is increasingly colliding with economic and political pressures stemming from deepening trade tensions with China and the Iran war.

3. ⁠INFLATION AFTERSHOCK MIKE ​DOLAN, ROI Finance & Markets Columnist: US ⁠headline and core consumer prices rose more than expected in October, with sticky price pressures evident across most categories, alongside energy. The inflation surprise sent US interest-rate bets, Treasury borrowing costs and the dollar ⁠skyward as talk of an unusually large half-percentage-point rate rise from the Federal Reserve next month swirled. The big moves off one data point highlighted the market's confusion surrounding the ​Fed's reaction function.

4. FROM CRUNCH TO GLUT RON BOUSSO, ROI Energy Columnist: The global crude oil market has tipped into surplus since October, reflecting a ⁠sharp increase in exports from the Middle East after nearly nine months of the Iran war. But despite the sharp drop in oil prices in recent weeks, uncertainty over the reliability of flows ⁠from the ​Gulf remains high as everyone waits to see what US President Donald Trump's next move will be.

5. HYDRO HEADWINDS GAVIN MAGUIRE, ROI Global Energy Transition Columnist: Hydropower output in the Danube basin collapsed through the summer and remains far below normal seasonal levels. Combined with reduced Nordic hydro generation, this shrank Europe's energy ⁠flexibility cushion and helped lift German power prices to their highest levels since 2022, as wind generation also slumped and the burden shifted more heavily toward ⁠natural gas.

The broader lesson is that ⁠Europe's reserve cushion appears smaller than many policymakers may have assumed. The recent market turmoil highlights the work utilities still need to do to ensure power systems remain fit for purpose. Opinions expressed are those of the authors. They do not reflect ‌the views of Reuters ‌News, which, under the Trust Principles, is committed to integrity, independence, and freedom from ​bias.

(By Anna Szymanski; Editing by Marguerita Choy)