NVIDIA Corporation is facing increased regulatory scrutiny, with China launching an anti-monopoly investigation into the company. This adds to the existing pressure from the European Commission, which is also examining Nvidia's business practices in the AI chip market. These investigations are raising concerns about potential anti-competitive behavior in a sector where Nvidia holds a significant market share. The timing of these developments is particularly sensitive, as investors are already on edge due to the anticipated Consumer Price Index (CPI) data release, which could impact Federal Reserve policy and the broader economic landscape.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF has responded to these developments, rising 1.78% to $6.30 as of 7:20 AM on Monday, December 9.