Written by: Chao Xiang Research
Chip stocks that supported the market on Thursday gave back their gains on Friday. AMD plummeted 8.8%, Broadcom dropped 4.8%, and Nvidia fell another 2%, leading the Nasdaq to close down 0.91%.
The Dow Jones increased slightly by 0.1% driven by consumer staples and energy stocks. All three major indexes still recorded their best weekly performance since early August.
Nasdaq down 0.91%, Dow slightly up
Below are the trading results from Friday, November 13, Eastern Time.
The Dow rose by 50.46 points, an increase of 0.1%, closing at 52347.55 points.
The S&P 500 dropped by 30.73 points, a decline of 0.4%, closing at 7561.67 points; the Nasdaq fell by 229.82 points, a decrease of 0.91%, closing at 25136.27 points.
| Index | Closing Value | Daily Change | Weekly Change |
|---|---|---|---|
| Dow Jones | 52347.55 | +0.1% | +2.1% |
| S&P 500 | 7561.67 | -0.4% | +2.5% |
| Nasdaq | 25136.27 | -0.91% | +2.3% |
| Russell 2000 | 2790.49 | -0.3% | — |
The three major indexes briefly rose together in the early session, with the Dow opening more than 200 points higher, but tech stocks weakened, causing the S&P and Nasdaq to turn negative.
There was a clear sector divergence. According to Xinhua News Agency statistics, among the 11 sectors in the S&P 500, 6 were up, with consumer staples rising 1.39% and energy increasing 0.96%; the technology sector fell by 1.7%, the largest decline.
Coca-Cola rose 1.86%, reaching a record high, while Chevron and Walmart increased by 1.64% and 1.51%, respectively. The VIX index that measures volatility rose to 19.28.
Chip stocks collectively retreat, AMD down 8.8%
Chip stocks that vastly increased against the trend on Thursday became the main drag on Friday. AMD dropped 8.75%, closing at $534.06, making it the worst-performing stock in the S&P 500.
Broadcom fell 4.8%, and Intel declined by 2.5%. Dell dropped by 7.18%.
José Torres, a senior economist at Interactive Brokers, told Kiplinger that there is increasing evidence showing Nvidia chips flowing to China, and the entire semiconductor sector is worried that tightening regulations will impact revenue and profit prospects.
After an earnings report that exceeded expectations, Cisco’s stock fell by 6.24%, closing at $95.64, marking the largest decline among the components of the Dow. Kiplinger believes that Cisco has had prominent gains in the Dow this year, and Friday's drop may be due to profit-taking.
HSBC downgrades rating, Nvidia's market value falls below $4 trillion
Nvidia briefly rebounded about 2% before the market opened, but closed down 2.01% at $162.85, hitting a 52-week low and dropping its market value below $4 trillion.
HSBC analyst Frank Lee downgraded Nvidia's rating to "Hold," sharply lowering the target price from $375 to $170, only about 4% higher than Friday's closing price.
He believes the stock price is unlikely to improve before the company confirms a formal CEO. Another layer of concern arises from export controls: in the past six quarters, approximately 11% of Nvidia's revenue came from regions outside the U.S. and Taiwan, which may face stricter export regulations.
Nvidia will release its third-quarter earnings report on November 17, Eastern Time, which will be the first report since Jensen Huang's departure, led by interim CEO Colette Kress.
PPI month-on-month lower than expected, year-on-year reaches nearly four-year high
The U.S. October PPI rose by 0.3% month-on-month, lower than the expected 0.4%; however, it rose by 6.5% year-on-year, the largest increase since November 2022.
The core PPI rose by 0.3% month-on-month, in line with expectations, and increased by 5% year-on-year, the highest since January 2023.
After the data was released, short-term yields fell, while long-term yields continued to rise. The 2-year U.S. Treasury yield dropped by 1.2 basis points to 4.872%; the 10-year rose by 2 basis points to 5.153%, with an intraday high of 5.17%.
According to The Wall Street Journal, the 10-year yield rose by a cumulative 29 basis points this week, the largest single-week increase in 19 months.
Oil prices flat, Bitcoin falls below $70,000
Oil prices remained basically flat after a large rise on Thursday. WTI crude oil dropped 0.20%, settling at $88.56 per barrel; Brent crude oil rose 0.02%, settling at $95.84 per barrel. Both recorded declines for the second consecutive week.
Gold futures fell 0.24% to $3875.90 per ounce, still near the one-year low set on Thursday.
Cryptocurrency assets suffered larger declines. According to CoinDesk, Bitcoin dropped by 4.22% to $68,433, dipping below the 200-week moving average; Ethereum fell by 4.13% to $1,931, marking the first time since August that it has fallen below $2,000.
Looking ahead to next week
Below are the details in Eastern Time.
November 17 (Tuesday): Nvidia third-quarter earnings report. The market is focused on Kress's statements regarding AI investment ecosystem, sales in the Asia-Pacific region, and the impact of export controls.
Tuesday: U.S. October retail sales. If the data shows a significant downturn, it may affect whether the 10-year yield can return below 5%.
Thursday: Anthropic expected to go public. According to CNBC, the offer price range is between $70 and $78 per share, with a fundraising target of several billion dollars.
Earnings reports: Walmart, Home Depot, Target, Lowe’s, TJX, Disney, Alibaba, and Palo Alto Networks will successively announce their performance.
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