Nasdaq, S&P 500 tumble as Nvidia overhang weighs on tech stocks: Stock Market Live Updates
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Dow Jones | Nasdaq | Stock Market Live: The major US stock indexes trade lower on Friday despite data showing October producer prices were slightly softer than expected, potentially relieving some pressure on the Federal Reserve to hike interest rates aggressively.
Wall Street’s main indexes trade lower, with the Dow Jones Industrial Average down 192.16 points, or 0.37%, at 52,104.93. The S&P 500 falls 73.80 points, or 0.97%, to 7,518.60, while the Nasdaq Composite drops 367.05 points, or 1.45%, to 24,999.04. Meanwhile, the Producer Price Index, which measures the prices that farms, factories and other sources of goods receive, rose 6.5% on an annual basis, the most since November 2022. The month-over-month reading moderated from the prior month, but the data adds to expectations that the Federal Reserve will lift interest rates next month.
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Treasury Secretary Scott Bessent said Friday he was frustrated with the Commerce Department’s delay in implementing controls over the export of certain Nvidia chips to China.
Bessent said on CNBC that his department, along with the departments of State and Defense and the U.S. Trade Representative, were in favor of adding Megaspeed to an export control list for months but that the Commerce Department was in charge of the matter.
Uber said an unauthorized party used compromised credentials at a service provider to access its data, according to a notice posted on the California attorney general's website.
The notice, dated November 10, said the provider told Uber on October 9 that the credentials had been compromised and used to access Uber's account with the provider. Uber severed its data connections with the provider and opened an investigation.
Federal Reserve Bank of Boston President Susan Collins said Friday tighter monetary policy lies ahead amid high levels of inflation, which appear to be broadening out.
“I think it's clear the direction that monetary policy needs to go and I would think that soon some additional firming, tightening of policy is appropriate,” Collins said in an interview with Bloomberg’s television channel.
Interest-rate-sensitive 2-year Treasury yields are headed for the largest weekly increase in over two years on Friday after hotter-than-expected consumer price inflation and hawkish Federal Reserve commentary this week led traders to ramp up bets on faster interest rate increases. The 2-year note yield was last down 0.94 basis point at 4.855%. It earlier reached 4.892%, the highest since October 14, and is headed for the biggest weekly increase since the first week of October 2024.
Gold firmed on Friday as a US inflation reading came in largely in line with expectations, alleviating some bets on a bigger rate hike, but bullion's selloff to an over one-year low in the previous session kept it on track for a weekly decline on expectations of further Federal Reserve tightening.
Spot gold was up 0.6% at $3,898.84 per ounce as of 9:50 a.m. ET (1450 GMT), after briefly touching a session high of $3,922.97 when the US Producer Price Index data came out. US gold futures for December delivery were up 0.5% at $3,903.00 per ounce.
The Dow Jones Industrial Average rose 193.6 points, or 0.37%, at the open to 52,490.68. The S&P 500 rose 24.5 points, or 0.32%, at the open to 7,616.85, while the Nasdaq Composite rose 41.9 points, or 0.17%, to 25,408.001.
BofA Global Research said on Friday it now expects the Federal Reserve to raise rates by another 25 basis points in January 2027, on top of its prior forecast of hikes in December and March, after a hotter-than-expected October CPI reading boosted bets on higher borrowing costs.
Chicago Fed president Austan Goolsbee said on Friday that inflation lodged above the Fed's 2% target has spread beyond potentially temporary energy and tariff cost shocks, with the AI buildout forcing prices higher through strong demand, and many services and health care also experiencing price increases beyond what could be explained by oil prices or import taxes.
US Treasury Secretary Scott Bessent said on Friday that he would not be cowed by Iranian threats against his life, after recently moving from his Washington, DC, residence to a US military base.
"Why am I going to be afraid when our, the brave military personnel in the Gulf, President (Donald) Trump, constantly receive death threats?" Bessent said in an interview on CNBC. Iran has denied plotting to attack officials and people on US soil.
Treasury Secretary Scott Bessent told CNBC that the US Federal Reserve should have an open mind and not hike rates too much, saying on Friday the "energy shock" was tied to the Iran war and that the underlying economy was very strong.
October’s producer inflation report could shape expectations for the Federal Reserve’s rate decision next month. Traders fully expect an increase and see a roughly 12% chance of a larger 50-basis-point move instead of the widely anticipated 25-basis-point hike, according to the CME FedWatch tool.
About 83.6% of the 450 S&P 500 companies that had reported results through Thursday beat expectations, according to LSEG. However, geopolitical concerns persisted as oil prices rose for a third straight session after President Donald Trump said the US did not need a deal with Iran.
Microsoft shares dropped 2.1% in premarket trading after an outage lasting more than 12 hours disrupted its services worldwide. Meanwhile, Cerebras surged over 17% after raising its 2026 revenue forecast and naming Microsoft as a customer.
Nvidia shares gained 2.6% in premarket trading after losing about 11% this week through Thursday, when Colette Kress was named interim CEO. The leadership change has intensified concerns about the wider AI trade and could bring greater scrutiny to Nvidia’s financing arrangements with other industry players.
Nasdaq 100 futures were subdued on Friday after a volatile week marked by Jensen Huang’s resignation as Nvidia CEO amid reports about his relationship with a Chinese businesswoman suspected of spying for Beijing. The Dow E-minis rose 27 points, or 0.05%, S&P 500 E-minis gained 11.75 points, or 0.15%, and Nasdaq 100 E-minis slipped 7.5 points, or 0.03%.