[November 13, 2026] Tech stocks soften amid fallout from Nvidia CEO's resignation and inflation concerns
Good morning, this is Hal.
The U.S. stock market yesterday, November 13, 2026, saw the NASDAQ Composite Index fall nearly 1% as concerns over management and regulations surrounding Nvidia, which had been driving the AI (artificial intelligence) market, weighed on tech stocks.
Furthermore, the released Producer Price Index (PPI) accelerated significantly year-on-year, heightening concerns about inflation and causing the U.S. 10-year Treasury yield to rise to as high as 5.17%, which acted as a headwind for high-growth tech stocks.
On the other hand, funds flowed into some defensive and value stocks such as finance and energy, allowing the Dow Jones Industrial Average to end the session with a slight rebound.
Today’s Market Overview
While tech stocks were sold off due to the fallout from the Nvidia issue and rising interest rates, the Dow average saw a slight rebound, leading to mixed results across indices.
-
S&P 500 Index: 7,561.67 (-30.73 / -0.40%)
-
Dow Jones Industrial Average: 52,347.55 (+50.46 / +0.10%)
-
NASDAQ Composite Index: 25,136.27 (-229.82 / -0.91%)
The “Three Protagonists” That Moved the Market
The main factors that drove market sentiment yesterday and triggered capital movement between sectors are the following three points.
Expansion of regulatory investigations surrounding Nvidia and unwinding of semiconductor stocks
Concerns spread that the issues surrounding Nvidia’s former CEO would develop into an investigation into export controls to China, involving Congress and the government. Furthermore, funds that had moved from the company to competitors were sold off in unison for profit-taking, causing semiconductor stocks as a whole to fall significantly.
Acceleration of the October Producer Price Index (PPI) and expectations of consecutive Fed rate hikes
The released October PPI showed a significant year-on-year increase of 6.5%, indicating the persistence of inflation. This strengthened the view that the Fed (Federal Reserve Board) would continue to raise interest rates from December onwards, causing U.S. long-term interest rates to rise and putting pressure on the stock market.
Caution regarding AI investment and flight to capital into mega-caps and defensive stocks
As companies with heavy AI-related capital expenditures and related firms were sold off, companies like Apple, which have relatively light capital expenditure burdens and abundant funds, were chosen as safe investment destinations. Funds also moved into defensive sectors such as daily necessities and finance.
Hal’s Perspective: Long-term interest rates hovering in the 5.1% range and rotation to defensive stocks
Today, I will explain the impact caused by the rise in long-term interest rates and the movement of funds between sectors.
Valuation pressure due to rising interest rates and the decline of the information technology sector: With the U.S. 10-year Treasury yield rising to the high 5.1% range, valuations for future earnings became stricter, causing the information technology sector to fall the most. In addition to the sharp drop in semiconductor-related stocks, concerns about the profitability of AI infrastructure also weighed on tech stocks.
Capital inflows into consumer staples and financial sectors: Funds flowing out of tech stocks moved into sectors such as consumer staples, which offer stable earnings and dividends even in a high-interest-rate environment, and the financial sector, where improved interest margins are expected. Capital has not fled the market as a whole, but rather, a rotation toward safer sectors is underway.
Stocks to watch: Stocks bought for strong performance or undervaluation, and stocks sold due to profit-taking or regulatory concerns
[Gainers]
Shares were bought after third-quarter revenue and earnings significantly beat market expectations, the company expanded its share buyback program, and capital flowed in as it is viewed as a highly profitable AI software stock.
Although the stock plunged the previous day following reports that acquisition talks by an investment fund had been terminated, it showed a strong autonomous rebound as investors reassessed its undervalued price level and the robustness of its core business.
In addition to the reassessment of its strong third-quarter earnings, reports of internal testing for a new prediction market app and technical buying supported the stock, making it a preferred destination for capital flight among tech stocks.
[Losers]
The stock had surged as capital concentrated in it as an alternative following the resignation of a competitor’s CEO, but intense profit-taking occurred ahead of the weekend due to concerns over high valuations, wiping out much of its recent gains.
The stock was sold due to concerns over regulatory risks after it was reported that servers manufactured by the company, which contain AI semiconductors subject to U.S. export controls, had been shipped to China via Singapore.
Although first-quarter earnings were strong, the market was disappointed by a decline in profit margins due to an increased sales ratio of lower-margin AI hardware, as well as a forecast for lower revenue and profit in the next quarter.
Outlook: Focus on mega-tech earnings and FOMC minutes
The current U.S. stock market is at a turning point where market evaluation of AI investment is becoming more stringent, and capital is shifting toward companies that generate steady profits and cash flow.
Nvidia’s earnings announcement is scheduled for next week, and the sustainability of AI semiconductor demand and explanations regarding the management structure will be the primary focus. Additionally, with the release of the FOMC minutes, I believe it is important to maintain a stance of selecting companies with solid financial foundations while calmly assessing inflation trends and the future path of interest rates.
That is all from Hal.
Important Request
This article was created for the purpose of providing information regarding U.S. stocks and does not recommend the buying or selling of any specific securities. Please make all final investment decisions based on your own judgment and responsibility.