Nasdaq Set to Open Down as Market Adapts to Nvidia's New Dawn
After all that Nvidia drama, the S&P 500 notched its best week in three months.
The market benchmark fell 0.4% but locked in its best week since Aug. 7. The Dow Jones Industrial Average rose 51 points, or 0.1%, while the Nasdaq Composite dropped 0.9%.
The AI trade took a hit on Friday as Wall Street tried its best to make sense of the global chip market in the wake of Jensen Huang’s resignation from Nvidia.
“There’s also more chatter around Jensen’s importance not just to NVDA, but to the GLOBAL AI trade,” writes Mizuho’s Daniel O’Regan. “He was the ‘glue guy’ holding a lot of this narrative together, so anything that creates uncertainty around him has a much bigger knock-on effect.
The yield on the 2-year Treasury note rose for a fifth-straight session and marked its largest increase in a week since Oct. 4, 2024. Keep in mind that stat is based on the four days the bond market was open this week, as Wednesday was Veterans Day.
Bond yields were higher after inflation reports this week sent odds of multiple rate hikes in the coming months higher.
Still, Wall Street found plenty of reasons to buy stocks this week—including in tech stocks not named Nvidia. That could have more to do with the prior week’s sharp swings.
The market will be tested next week when Nvidia reports quarterly results. Earnings from key retailers such as Target and Walmart are also due. If that weren’t enough, Anthropic is expected to begin trading on Thursday under the ANT ticker.
Get your popcorn ready.