Stock Market This Week: NVDA Tumbles, AMD & AVGO Surge, October CPI Hot

Sam Vadas (0:00)

Welcome to The Wrap, I'm Sam Vadas. Here to take you through this week's market headlines. Markets were lower on Friday, but the S&P 500 and NASDAQ 100 both snapped four-week losing streaks. The S&P 500 was up 2.5%, and the NASDAQ 100 rose 3.5% this week, while the Dow closed 2.1% higher.

All 11 sectors closed the week higher, with Energy, Industrials and Communications the top performers. The big headline of the week surrounded the ouster of Jensen Huang from Nvidia. The now former CEO apologized over the weekend for in a relationship with an alleged Chinese spy who served as an executive at a client of Nvidia. By Wednesday, the New York Times reported a second affair with an Nvidia executive, and Huang had resigned by Thursday with CFO Colette Cress becoming interim CEO. The stock fell as low as $149 on Thursday morning before recovering some of the losses. Nvidia's stock finished the week down 13% and is 33% off its all-time high it hit on October 6

Nvidia's loss was another chip company's gain, with investors shifting their investments to the other aspects of the AI trade. AMD and Broadcom rallied nearly 20% and the stocks index finished up 8% despite Nvidia's loss. Inflation remained in the headlines and weighed on markets as the October CPI came in at 0.4%, a tenth of a percent higher than estimates.

This has all but locked in a rate hike according to the CME FedWatch tool, which projects a 100% chance of an increase at next month's Fed meeting. Let's take a look at what to watch for next week. Nvidia will remain the top of investors' focus as it reports earnings post-market on Tuesday. It's also a busy week for other earnings with Disney Home Depot, Target, Lowe's, Walmart, Alibaba and Palo Alto Networks reporting. That's going to do it for the wrap. I'm Sam Vadas. Remember to tune in 24-7 to schwabnetwork.com and subscribe to our YouTube channel.