U.S. stocks finished a volatile week on a mixed note Friday, as a renewed sell-off in semiconductor shares pulled the tech-heavy Nasdaq lower while the Dow managed a small gain. Investors continued to digest the fallout from Jensen Huang’s resignation as Nvidia’s CEO, along with a wholesale inflation report that reinforced expectations the Federal Reserve will raise interest rates next month. Despite Friday’s losses, all three major averages still posted gains for the week.
What Moved Markets
The Dow Jones Industrial Average closed up 50.46 points, or 0.10%, at 52,347.55. The S&P 500 fell 30.73 points, or 0.40%, to 7,561.67, and the Nasdaq Composite dropped 229.82 points, or 0.91%, to 25,136.27.
Stocks opened higher, but the gains faded as selling spread through chipmakers and other companies tied to the artificial intelligence build-out. The Producer Price Index, which tracks prices businesses receive for their goods and services, rose 0.3% in October. That was slightly below the 0.4% economists expected, but prices were up 6.5% from a year earlier, the biggest annual increase since November 2022. Fed Governor Michelle Bowman said earlier this week that rate hikes may be needed to slow price increases.
Bond markets added to the pressure. The 10-year Treasury yield, a key benchmark for mortgage and borrowing costs, touched 5.17% during the session, its highest level since October. Higher yields tend to weigh on growth stocks, whose value depends heavily on future earnings. The Cboe Volatility Index, often called Wall Street’s “fear gauge,” climbed above 20, while bitcoin slipped below $70,000 for the first time in nearly three months. With AI names under pressure, some investors rotated into perceived safe havens, and Apple (AAPL) touched a new all-time high during the session.
Notable Movers
Nvidia (NVDA) fell 2.01% to close at $162.85, pushing its market value back below $4 trillion. The stock lost roughly 12% for the week following Huang’s exit, and HSBC downgraded the shares to Hold and cut its price target to $170 from $365, citing an unclear leadership succession plan. The company reports quarterly earnings next Tuesday.
Advanced Micro Devices (AMD) was among the hardest-hit names, tumbling about 10% as the chip sell-off accelerated. Broadcom (AVGO) also fell around 5% after Rothschild & Co. Redburn downgraded the stock to neutral from buy, and AI server maker Dell (DELL) and memory stock Sandisk (SNDK) also posted sharp losses.
Cisco Systems (CSCO) slid roughly 6% as traders took profits a day after the networking company beat first-quarter estimates and raised its full-year outlook.
On the upside, Modine Manufacturing (MOD) soared more than 25% after a Bloomberg report said Samsung Electronics is in talks to acquire the maker of thermal management equipment used in data centers. AI chipmaker Cerebras Systems (CBRS) also rallied sharply after reporting a surprise third-quarter profit, revenue of $231 million that topped forecasts, and a raised fourth-quarter outlook.
Looking Ahead
Next week’s spotlight falls squarely on Nvidia’s third-quarter results on Tuesday, which will be the company’s first report without Huang at the helm and could set the tone for the broader AI trade. Investors will also watch for Anthropic’s expected initial public offering, earnings from retailers including Lowe’s (LOW), and any further comments from Fed officials ahead of the central bank’s December meeting. Movements in Treasury yields and oil prices are likely to remain key drivers of market sentiment.