FACTS
U.S. stocks ended mixed Friday, Nov. 13, as losses in Nvidia and other chip stocks pulled the Nasdaq lower while the Dow Jones Industrial Average edged up. The S&P 500 slipped 0.4% for the day but gained 2.5% for the week, its first winning week since October, according to The Associated Press. Treasury yields rose, with the 10-year yield closing at 5.15%.
How stocks ended mixed on Friday
The S&P 500 fell 30.73 points, or 0.4%, to 7,561.67, according to AP closing figures. The Dow rose 50.46 points, or 0.1%, to 52,347.55 after recovering from an early slide. The Nasdaq composite dropped 229.82 points, or 0.9%, to 25,136.27. The Russell 2000 index of smaller companies fell 8.57 points, or 0.3%, to 2,790.49.
More than 60% of stocks in the S&P 500 rose, the AP reported.
Weekly and yearly moves
For the week, the S&P 500 rose 184.81 points, or 2.5%, its biggest weekly gain since August, according to the AP. The Dow gained 1,061.82 points, or 2.1%. The Nasdaq rose 556.85 points, or 2.3%, its first weekly gain in five weeks. The Russell 2000 added 1.3%.
For the year, the S&P 500 is up 10.5%, the Dow is up 8.9%, the Nasdaq is up 8.2% and the Russell 2000 is up 12.4%, AP figures show.
Nvidia and chip stocks
Nvidia fell about 2% on Friday, a day after CEO Jensen Huang resigned and Chief Financial Officer Colette Kress was named interim CEO. Yahoo Finance reported that Nvidia closed at $162.85, that its market value ended below $4 trillion, and that the stock fell about 12% over the week. The AP said the fallout cost Nvidia nearly $600 billion in market value this week.
HSBC downgraded Nvidia to Hold and cut its price target to $170 from $365, Yahoo Finance reported. HSBC analyst Frank Lee said investor confidence had been “shaken” by the leadership uncertainty.
Advanced Micro Devices fell 8.8% and Broadcom lost 4.8%, the AP reported. Both had risen earlier in the week as Nvidia’s leadership changed. “Nvidia’s pullback serves as a reminder of the concentration risk embedded in a market” where a few large technology stocks drive most returns, Edward Jones strategist Angelo Kourkafas said in a research note quoted by the AP.
Among gainers, Eli Lilly rose 1.3%, and Visa and Mastercard each rose 1.3%, according to the AP.
Yields, inflation and the Fed
The 10-year Treasury yield rose to 5.15% from 5.10%, the AP reported. Yahoo Finance said it reached 5.17% during the day, its highest level since October. The 2-year yield, which tracks expectations for Federal Reserve action, rose to 4.87% from 4.86%.
The government’s producer price index for October showed wholesale prices rose 0.3% for the month, below the 0.4% economists expected, while the 6.5% annual rate was the largest since November 2022, Yahoo Finance reported.
Fed Governor Michelle Bowman said “Inflation pressures have persisted for longer than I had hoped,” according to Yahoo Finance, which reported that she said rate increases may be needed. The AP reported that economists widely expect the Fed to raise rates at its December meeting, and that energy costs tied to the Iran war are pushing inflation higher. “If that continues, it becomes much harder for the Fed to simply look through inflation as temporary,” Chris Osmond, chief investment officer at Fifth Third Wealth Advisors, said in a note quoted by the AP.
Oil and bitcoin
Brent crude, the international standard, settled at $95.84 a barrel, the AP reported. European stock markets were mixed. Bitcoin fell 4.2% to about $68,322 after dropping below $70,000 for the first time in nearly three months, according to Yahoo Finance.
More coverage is in the Stay Current News Money section.
Photo: File photo of the New York Stock Exchange. Donatingpictures / Wikimedia Commons, CC BY-SA 4.0.
