Friday's Final Takeaways: Yields Spike as NVDA Rattles Stock Market

Sam Vadas (0:00)

Welcome back to Market On Close. I'm Sam Vadas at the New York Stock Exchange. Some final thoughts on the session. Notable resilience in the broader market this week, even with a sharp sell-off in one of its biggest constituents. Despite Nvidia losing more than $1.6 trillion in market cap since early October, the market has actually responded, as we've been watching, rotating into competitors, customers and suppliers. One mover I would highlight is MediaTek. That's the fabulous chip designer, which sits down in Taiwan. That stock surged today. It's up 180% for the year. The company works with Nvidia, but also its competitors like AMD and Google. So the expectation is a name like MediaTek will be a beneficiary, regardless of who takes market share.

And it feels like the longest shortened trading week for the bond market, as we mentioned with this sharp sell-off pushing yields higher. This is the biggest weekly jump for the 10-year we've seen since April last year. And it's the biggest move for the two-year yield since March, 2023, so over three years ago. And it came after a double dose of inflation, with consumer prices coming in hotter than expected. And those producer prices today, the PPI continuing to show pipeline pressures. So that was coupled with a bunch of hawkish Fed commentary, which really raised the market's odds of a hike coming next month. In addition to the rate backdrop, the dollar has strengthened to a 19-month high this week. That's been pressuring regional currencies like Japanese yen, which has weakened to the closely watch 160 level against the greenback for the first time since September.

That's got traders on Intervention Watch going into the weekend as that 160 mark, as we know, has previously been the line in the sand and a critical threshold for authorities to then step in. So that's what we've been watching and taking a look at this week. But looking ahead to next week, as we mentioned, ton of consumer earnings, Walmart, Home Depot, Lowe's, Target, TJX. We've got Nike Invest today as well. That's the first in nearly a decade under CEO Elliot Hill. We've got a bunch of Chinese ADRs, Alibaba, Tencent, Pinduoduo, JD, Baidu will all be reporting as the US and China meeting gets set in Shenzhen. Trump will be going over there. And of course, all lines will be on Nvidia. And that report, that call on Tuesday, followed by that briefing with Jensen on Wednesday.

That's going to do it for us here on Market on Close. On behalf of Mayor Marley Caden, who stepped out a little bit early today, I'm Sam Vadas. Be sure to download the Schwab Network app available in the Apple App Store. Tune in 24 seven on schwabnetwork.com. Have a great weekend. We will see you on Monday.