- Sam Altman back at OpenAI.
- Changpeng Zhao out of Binance.
- Israel and Hamas agreed on a hostage-taking deal and a humanitarian pause in Gaza.
Here are the key news investors need to start the trading day:
All three major indexes ended Tuesday in the red, breaking a streak of five straight days of gains for the S&P 500 and the Nasdaq Composite. The low point came as Federal Reserve officials released minutes from their latest meeting on Tuesday, showing that Fed policy must remain “hawkish” amid fears that inflation could remain stubborn or rise. Meanwhile, shares of clothing retailer American Eagle fell nearly 16% after a string of retail gains as the company issued unimpressive holiday forecast, and Lowe’s slipped 3.1% after cutting its full-year sales outlook. Shares of e-commerce giant Amazon also fell 1.5% after CNBC’s David Faber reported, citing sources, that former CEO Jeff Bezos may sell more shares. Follow live market updates.
An likeness of former OpenAI CEO Sam Altman is seen on the screen of a mobile device in this illustration photo taken in Warsaw, Poland, on November 21, 2023. Former OpenAI boss Sam Altman said he is still ready to lead the company after his ouster, two board members are stepping down, according to The Verge. (Photo by Jaap Arriens/NurPhoto via Getty Images)
Photo only | Photo only | Getty Images
Sam Altman is back as CEO of OpenAI, less than a week after being fired. This is what the artificial intelligence startup said X that with his return there will also be some changes to the board. Altman was suddenly fired Friday afternoon, sparking outrage among employees and investors. Hundreds of employees signed a letter calling for the board’s resignation and Altman’s reinstatement. They also threatened to move with him to Microsoft if he did not return to the Microsoft-backed startup.
Binance Co-Founder & CEO Changpeng Zhao speaks during Web Summit 2022 in Lisbon, Portugal, November 1, 2022.
Ben Mcshane | Sports file | Getty Images
Binance CEO and founder Changpeng Zhao resigned from his position on Tuesday after pleading guilty to charges of causing a financial institution to violate the Bank Secrecy Act. According to the U.S. Department of Justice, Zhao’s cryptocurrency exchange also faced multiple charges and agreed to pay $4.3 billion in fines and forfeiture. Zhao on Tuesday also named Richard Teng – a former CEO of Abu Dhabi Global Market, the financial services regulator in the United Arab Emirates capital, who was most recently global head of regional markets at Binance – as his successor. In a post on XZhao, formerly known as Twitter, said he had to “take responsibility” and that it was “not easy to let go emotionally.”
Signage for Nvidia Corp. during the Taipei Computex Expo in Taipei, Taiwan, on Tuesday, May 30, 2023.
Hwa Cheng | Bloomberg | Getty Images
Nvidia beat Wall Street expectations for its third-quarter profit. But the chipmaker also warned that export restrictions affecting sales in China and other countries could hurt the next quarter. Nevertheless, Nvidia is still in high demand. Sales rose 206% year-over-year in the quarter ended Oct. 29, according to a statement. The company also issued guidance calling for $20 billion in revenue for the fiscal fourth quarter, which would represent revenue growth of nearly 231%. Nvidia saw demand for its graphics processors exceed supply thanks to the rise of generative artificial intelligence.
An ultra-Orthodox Jewish man walks outside the walls of Jerusalem’s Old City, which project images of the hostages kidnapped by Palestinian militants in the October 7 attack and currently being held in the Gaza Strip on November 6, 2023, amid ongoing fighting between Israel and the militant group Hamas.
Ahmad Gharabli | AFP | Getty Images
Israel and Hamas have agreed to a hostage-taking deal and a humanitarian pause in Gaza that will last at least four days. The pause will allow more humanitarian convoys and supplies, including urgently needed fuel, to enter the Gaza Strip. Under the agreement, 50 civilian women and children currently held in the Palestinian enclave will be released as hostages. In return, Israel will release a number of Palestinian women and children. The deal was worked out for weeks and involved external brokers and intermediaries from the US, Qatar and Egypt. The Israeli government stressed that despite this agreement, the war will not end until all of its goals are achieved, including the release of all hostages and the elimination of Hamas. Follow live updates.
—CNBC’s Hakyung Kim, Jeff Cox, MacKenzie Sigalos, Ryan Browne, Ari Levy, Hayden Field, Jonathan Vanian, Rohan Goswami, Jordan Novet, Rebecca Picciotto and Ruxandra Iordache contributed to this report.
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