Markets in 5Friday, November 13
Nvidia leadership shake-up weighs on stocks and yields
U.S. stocks fell and Treasury yields rose on Thursday as Nvidia's leadership change weighed on technology and markets priced in a December rate hike.
Stocks
Nvidia leadership change pulls U.S. stocks lower
The Nasdaq Composite fell 0.39% to 25,366.09 on Thursday, November 12, while the Dow dropped 189.40 points, or 0.36%, to 52,297.09. The S&P 500 slid 0.35% to 7,592.40 and the Russell 2000 closed at 2,799.06, down 1.66%, while decliners outnumbered advancers 3.4 to 1 on the NYSE. Technology investors were unsettled by the ouster of Jensen Huang as Nvidia's chief executive, and rising Treasury yields added pressure.
Rates
Ten-year Treasury yield climbs to 5.10% on Thursday
The 10-year yield rose 12 basis points to 5.10% in the official Treasury par yield data, up from 4.98% on November 10. The 2-year yield climbed from 4.73% to 4.86%, and the 30-year closed at 5.43%. The gap between the 2-year and 10-year yields narrowed to 24 basis points from 25 basis points on November 10.
The Fed
Markets price a December rate hike after inflation data
CME FedWatch showed 100% odds of a hike at the December 9 meeting in early Friday trading, with about 87% for a quarter-point move and about 13% for a half-point increase. The federal funds target range is 3.75% to 4.00%, following the September hike. Waller said he would consider a half-point December increase if core inflation keeps coming in at 0.3% or higher.
Sectors
Nvidia falls 4.34% as AMD and Broadcom gain
Nvidia finished at $166.19, down $7.54 or 4.34%, after initially plunging as much as 14% before buyers trimmed the losses. AMD rose 5.9% and Broadcom 5.5%, while CoreWeave fell 6.86%, IREN 6.53% and Super Micro dropped 11.30% after Bloomberg reported the Justice Department is examining whether its products were smuggled. Energy was the only sector to finish higher.
Global
Asian and European shares slip as AI uncertainty lingers
Early Friday, Hong Kong's Hang Seng index was down 1.6% to 23,629.58, the Shanghai Composite slid 0.6%, and Japan's Nikkei 225 rose 0.5% to 61,142.35. The Stoxx 600 Technology index was down 1.3% in premarket trading, and European shares opened lower on Friday after record highs the previous session. Chip stock SMIC fell in Shanghai and Hong Kong despite strong earnings, and the WSJ says Asia's tech rebound faded.