TL;DR
The Nasdaq Composite fell 0.9% Friday as technology and semiconductor shares weakened, while the S&P 500 also declined and the Dow edged higher. All three major indexes finished the week up. Investors were weighing October producer-price data and preparing for Nvidia’s scheduled earnings report and Anthropic’s planned IPO next week.
The Nasdaq Composite fell 0.9% to 25,136 on Friday as weakness in technology shares erased its early gains, but the index still finished the week higher. The S&P 500 slipped 0.4% to 7,561, while the Dow Jones Industrial Average added 0.1% to 52,347; all three benchmarks posted weekly gains, according to the supplied market report.
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Stocks opened higher after the Bureau of Labor Statistics released October producer-price data, then turned lower as technology shares continued to weaken. The report said the Producer Price Index rose 0.3% from September, below economists’ 0.4% forecast, but was up 6.5% from a year earlier, its highest annual rate since November 2022.
Core PPI, which excludes food and energy, also increased 0.3% month over month, matching expectations. Its annual rate reached 5%, the highest since January 2023. The report’s cited CME Group FedWatch figures showed futures traders assigning a 90% probability to a quarter-point Fed rate increase in December, compared with 85% a day earlier. Those figures describe market pricing, not a Federal Reserve decision.
Technology and chipmakers were among Friday’s weakest shares. Nvidia fell 2%, while Advanced Micro Devices dropped 8.8%, Broadcom fell 4.8% and Intel lost 2.5%. Cisco Systems declined 6.2% despite reporting a quarter that, according to the source report, beat expectations and included an improved outlook. The report also points to profit-taking as a possible factor in Cisco’s fall; that explanation is an interpretation, not a confirmed cause.
Inflation and Tech Set the Market Tone
Friday’s trading showed how investors were balancing slower monthly wholesale inflation against a still-elevated annual pace. PPI is not the only measure used to assess inflation, and a single report does not establish the future path of prices or interest rates. Still, the figures and the reported change in rate expectations indicate that inflation data remained a market concern.
The losses in chipmakers also mattered beyond the Nasdaq, which is heavily weighted toward technology. Broad declines among semiconductor companies can affect the wider market’s performance and highlight investor sensitivity to company-specific developments and the sector’s earnings outlook. The week’s gains, meanwhile, show that Friday’s pullback did not erase the advances accumulated earlier in the week.
Next week’s scheduled corporate events could bring fresh information for investors. Nvidia’s results may offer an update on its business, while Anthropic’s planned offering would give the market a new public listing tied to artificial intelligence. Neither event guarantees a particular market reaction.
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October Prices and the Week Ahead
The BLS figures measure changes in prices received by domestic producers, rather than prices paid directly by consumers. In October, the monthly headline increase came in below the cited forecast, while the annual increase reached a level not seen since November 2022. The source report says food, services, and transportation and warehousing prices rose even as energy prices fell. Chris Osmond, chief investment officer at Fifth Third Wealth Advisors, said that pattern could point to inflation spreading beyond energy-related costs.
The source report said Nvidia’s quarterly results were scheduled for release after Tuesday’s close, with a call expected to feature Colette Kress, the company’s chief financial officer and interim CEO, according to the report. It also reported that Anthropic planned to price its IPO on Wednesday evening and begin trading on the Nasdaq Thursday under the ticker ANT. The stated initial range was $70 to $78 per share for 825 million shares. These are reported plans and offering terms, not confirmation that the listing has taken place.
Rate Outlook and Company Risks
Friday’s market close does not establish whether the decline in technology shares will continue. The supplied report does not provide the exact weekly percentage gains for the three indexes, so the scale of their weekly advances cannot be stated here. The reported FedWatch probability is a snapshot of futures pricing and may change; the Federal Reserve had not made a December decision in the material provided.
The source report describes a significant leadership development at Nvidia and refers to an investigation involving a company executive and a Singapore-based cloud company. The allegations and circumstances are not independently established in the supplied material, and no further details or responses are provided. Nvidia’s earnings, the effect of any regulatory scrutiny on its business, and the final terms and outcome of Anthropic’s proposed IPO remain unknown.
Earnings and IPO on the Calendar
Investors will next watch for Nvidia’s scheduled earnings release after Tuesday’s market close and the related call with interim CEO Colette Kress, as described in the source report. The results and management’s remarks may provide information about Nvidia’s recent performance and outlook, but their market impact is not yet known.
Anthropic’s reported plan is to price its offering Wednesday evening and begin Nasdaq trading Thursday under ANT. The final offer price, whether the schedule proceeds as reported, and how the shares trade after listing remain to be confirmed. Investors will also receive further information as markets assess inflation data and the Federal Reserve’s policy outlook.
Key Questions
Why did the Nasdaq fall on Friday?
The source report says stocks opened higher after October PPI data but turned lower as technology shares weakened. It does not establish a single cause for the broader tech decline.
Did all three major U.S. indexes finish the week higher?
Yes. The report says the Nasdaq, S&P 500 and Dow all recorded weekly gains, although it does not give the exact weekly percentage changes.
What did the October producer-price report show?
Headline PPI rose 0.3% from September to October, below the cited 0.4% forecast, and increased 6.5% year over year. Core PPI rose 0.3% month over month and 5% year over year.
What market events are scheduled for next week?
The source report schedules Nvidia’s earnings release after Tuesday’s close and Anthropic’s planned IPO pricing for Wednesday evening, with Nasdaq trading expected Thursday under ANT. The schedule and final offering details remain subject to confirmation.
Source: kiplinger.com
