US Stock Trends (Nov 14): Chip Stocks Give Back Gains, Nasdaq Falls 0.91%, AMD Plunges 8.8%
Author: Chaoxiang Research
On Thursday, chip stocks propped up the broader market, but on Friday, they gave back their gains. AMD plummeted 8.8%, Broadcom fell 4.8%, NVIDIA dropped another 2%, and the Nasdaq closed down 0.91%.
The Dow Jones Industrial Average rose slightly by 0.1% driven by consumer staples and energy stocks. All three major indexes still recorded their best single-week performance since early August.
Nasdaq Falls 0.91%, Dow Closes with Slight Gains
Below are the trading results for Eastern Time Friday, November 13.
The Dow Jones Industrial Average gained 50.46 points, or 0.1%, closing at 52,347.55.
The S&P 500 fell 30.73 points, or 0.4%, closing at 7,561.67; the Nasdaq dropped 229.82 points, or 0.91%, closing at 25,136.27.
IndexCloseDaily ChangeWeekly Change
Dow Jones52347.55+0.1%+2.1%
S&P 5007561.67-0.4%+2.5%
Nasdaq25136.27-0.91%+2.3%
Russell 20002790.49-0.3%—
All three major indexes initially rose in the morning session. The Dow opened with gains of over 200 points before tech stocks weakened, causing the S&P 500 and Nasdaq to turn lower.
Sector divergence was pronounced. According to Xinhua News Agency, six of the S&P 500’s 11 sectors finished higher, with consumer staples gaining 1.39% and energy rising 0.96%; the technology sector fell 1.7%, marking the largest decline.
Coca-Cola rose 1.86% to a record high, while Chevron and Walmart gained 1.64% and 1.51%, respectively. The Volatility Index (VIX), which measures market volatility, climbed to 19.28.
Chip Stocks Recede Together, AMD Drops 8.8%
Chip stocks that rallied against the trend on Thursday became the main drag on Friday. AMD fell 8.75% to close at $534.06, making it the worst-performing component in the S&P 500.
Broadcom fell 4.8%, and Intel dropped 2.5%. Dell declined 7.18%.
José Torres, Senior Economist at Interactive Brokers, told Kiplinger that there is increasing evidence suggesting NVIDIA chips are flowing into China, prompting concerns across the semiconductor sector that tighter regulations could impact revenue and profit outlooks.
Cisco posted solid earnings that beat expectations but fell instead of rising, closing down 6.24% at $95.64, making it the worst performer in the Dow. Kiplinger noted that Cisco has been one of the top gainers in the Dow this year, so Friday’s pullback may reflect profit-taking.
HSBC Downgrades Rating, NVIDIA Market Cap Falls Below $4 Trillion
NVIDIA briefly rebounded around 2% in premarket trading but closed down 2.01% at $162.85, hitting a 52-week low and ending the day with a market cap below $4 trillion.
HSBC analyst Frank Lee downgraded NVIDIA to "Hold," slashing his price target from $375 to $170, leaving it only about 4% above Friday’s closing price.
He stated that the stock is unlikely to recover until the company appoints a permanent CEO. Another concern stems from export controls: for the past six quarters, roughly 11% of NVIDIA’s revenue has come from markets outside the U.S. and Taiwan, which could face stricter export rules.
NVIDIA will report its third-quarter earnings after market close on Eastern Time November 17. It will be the first set of results since Jensen Huang stepped down as CEO, overseen by interim CEO Colette Kress.
PPI Monthly Rise Falls Short of Expectations, Yearly Gain Hits Near Four-Year High
U.S. October PPI rose 0.3% month-over-month, below the expected 0.4%; however, it increased 6.5% year-over-year, marking the largest yearly gain since November 2022.
Core PPI rose 0.3% MoM, in line with expectations, and jumped 5% YoY, the highest increase since January 2023.
Following the data release, short-term yields retreated while long-end yields continued to climb. The 2-year Treasury yield fell 1.2 basis points to 4.872%; the 10-year yield rose 2 basis points to 5.153%, touching an intraday high of 5.17%.
According to The Wall Street Journal, the 10-year yield accumulated a weekly gain of 29 basis points, its largest one-week increase in 19 months.
Oil Prices Flat, Bitcoin Falls Below $70,000
Oil prices remained largely flat following Thursday’s surge. WTI crude fell 0.20% to settle at $88.56 per barrel; Brent crude rose 0.02% to settle at $95.84 per barrel. Both benchmarks recorded their second consecutive weekly decline.
Gold futures dipped 0.24% to $3,875.90 per ounce, remaining near the annual low struck on Thursday.
Crypto assets suffered steeper losses. According to CoinDesk, bitcoin fell 4.22% to $68,433, slipping below its 200-week moving average; ethereum declined 4.13% to $1,931, marking the first time since August it has traded below $2,000.
Next Week to Watch
Times listed below are in Eastern Time.
November 17 (Tuesday): NVIDIA Q3 Earnings. Investors will focus on Interim CEO Colette Kress’s comments regarding the AI investment ecosystem, Asia-Pacific sales, and the impact of export controls.
Tuesday: U.S. October Retail Sales. If the data comes in noticeably weak, it could affect whether the 10-year Treasury yield can fall back below 5%.
Thursday: Anthropic Expected to Go Public. According to CNBC, the IPO price range is set between $70 and $78 per share, with fundraising reaching tens of billions of dollars.
Earnings: Companies including Walmart, Home Depot, Target, Lowe’s, TJX, Disney, Alibaba, and Palo Alto Networks will sequentially report results.