AMD Sinks 10.5% as Chip Rally Unwinds, Nasdaq 100 Falls 1.7%: Stock Market Today
Wall Street fell Friday as traders unwound this week’s rush out of Nvidia Corp. (NASDAQ:NVDA) and into rival chipmakers, sending Advanced Micro Devices Inc. (NASDAQ:AMD) down 10.5% and wiping out about $100 billion of its market value by midday . Stocks opened higher after a cooler-than-expected wholesale inflation report, then reversed as the scandal around Jensen Huang ‘s exit from Nvidia deepened.
A new report said 22 servers built by Dell Technologies Inc. (NYSE:DELL) and packed with restricted Nvidia H800 chips were sold to Singapore-based Aperia Cloud Services , then installed at a Shanghai data center tied to a company founded by Alice Huang . Treasury Secretary Scott Bessent said Treasury had favored blacklisting Nvidia partner Megaspeed .
“The real story here should be, did Nvidia know their client,” Bessent told CNBC on Friday.
AMD traded at $524.11, on track for its worst session since Nov. 5. The stock had rallied nearly 45% over the previous five sessions, and Friday’s drop erased about a third of that gain.
The S&P 500 fell 0.7% to 7,536, down 57 points.
The Dow Jones Industrial Average slipped 48 points, or 0.1%, to 52,249. Cisco Systems Inc. (NASDAQ:CSCO) led blue-chip decliners with a 6.4% drop, erasing about $26 billion of its market value, as a 250-basis-point squeeze in adjusted gross margin overshadowed record first-quarter revenue and a higher fiscal 2027 outlook.
The Nasdaq 100 dropped 488 points, or 1.7%, to 27,801. Within the Magnificent Seven, Nvidia fell 3.3% to $160.69 ahead of Tuesday’s results, its first report without Huang. The Russell 2000 lost 0.7% to 2,780, while the CBOE Volatility Index jumped 6% to 19.83.
The Treasury curve steepened.
The 10-year Treasury yield rose 3 basis points to 5.14%, and the 30-year yield climbed 4 basis points to 5.47%. The 2-year yield eased 1 basis point to 4.85%.
Gold was little changed at $3,885 an ounce, while silver fell 2.1% to $49.02. Bitcoin (CRYPTO: BTC) slid 3.4% to $68,984, below $70,000. West Texas Intermediate crude edged down 0.2% to $88.54 a barrel, and Brent was flat at $95.82.
On the data front, the producer price index for final demand rose 0.3% in October, below the 0.4% forecast and down from 1.4% in September. Annual producer inflation reached 6.5%, the highest since November 2022.
Read Also:
Huang Is Out of the Game: Now 20% of Nvidia's Asian Revenue Could Be at Risk
Friday’s Performance In Major US Indices
Index Last % Change MTD YTD S&P 500 7,535.54 -0.75% -0.59% +10.08% Dow Jones 52,249.39 -0.09% +0.93% +8.71% Nasdaq 100 27,800.79 -1.73% -2.06% +10.10% Russell 2000 2,780.46 -0.66% -1.12% +12.03% Updated by 12:42 p.m. ET
According to the Benzinga Pro platform:
The Vanguard S&P 500 ETF (NYSE:VOO) fell 0.8%.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) edged down 0.1%.
The Invesco QQQ Trust (NASDAQ:QQQ) dropped 1.7%.
The iShares Russell 2000 ETF (NYSE:IWM) slipped 0.6%.
Chipmakers Sink As Investors Hide In Consumer Staples
The Technology Select Sector SPDR Fund (NYSE:XLK) was the weakest sector, down 2.7% as AMD, Nvidia and Cisco fell, while the VanEck Semiconductor ETF (NASDAQ:SMH) dropped 4.1%.
The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) led with a 1.3% gain as money rotated into defensive shares.
Communication services, financials and utilities posted modest gains, while industrials, consumer discretionary and materials slipped.
Dell fell 8.4% after the report traced its servers to Shanghai. AI cloud providers Applied Digital Corp. (NASDAQ:APLD) and IREN Ltd. (NASDAQ:IREN) each lost more than 8% after a report that Microsoft Corp. (NASDAQ:MSFT) is reviewing its contracts with so-called neoclouds and plans to work with fewer of them. Optical component makers Coherent Corp. (NYSE:COHR) and Fabrinet (NYSE:FN) each slid 8.3% as the selloff spread across AI hardware.
Modine Manufacturing Co. (NYSE:MOD) soared 30.7% after a report that Samsung Electronics Co. Ltd. (OTC:SSNLF) is in talks to buy the data center cooling maker.
Nu Holdings Ltd. (NYSE:NU) jumped 11.3% after third-quarter net income hit a record $1.1 billion, up 31%. Revenue of $5.82 billion topped the $5.68 billion estimate, while earnings of 22 cents a share matched forecasts.
Shift4 Payments Inc. (NYSE:FOUR) rose 6.3%, leading a rally in payment stocks alongside Toast Inc. (NYSE:TOST) and Global Payments Inc. (NYSE:GPN) .
Almonty Industries Inc. (NASDAQ:ALM) gained 5.7% after third-quarter results confirmed that its Sangdong tungsten mine in South Korea produced its first concentrate in September, though earnings of 12 cents a share missed the 16-cent estimate. Viking Therapeutics Inc. (NASDAQ:VKTX) added 5.9% with no company-specific news.
Read Also:
AMD Stock Rallies as 'Godfather of AI' Jensen Huang Leaves Nvidia
Looking Ahead
No major companies report after Friday’s close. Nvidia reports on Tuesday.
Friday’s Russell 1000 Top Gainers
Name % Change Modine Manufacturing Co. +30.72% Nu Holdings Ltd. +11.28% Shift4 Payments Inc. +6.28% Viking Therapeutics Inc. +5.88% Almonty Industries Inc. +5.70%
Friday’s Russell 1000 Top Losers
Name % Change Advanced Micro Devices Inc. -10.45% Applied Digital Corp. -8.68% Dell Technologies Inc. -8.37% Coherent Corp. -8.33% Fabrinet -8.29%
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