The Nasdaq Composite fell on Friday as Nvidia extended its losses after CEO Jensen Huang's exit. Even so, the Nasdaq, S&P 500 and Dow were on track for weekly gains. October's producer prices rose 0.3% on the month and 6.5% from a year earlier.
The Nasdaq Composite fell on Friday as Nvidia shares added to their recent losses, though the index still headed for a winning week. The tech-heavy Nasdaq dropped 0.4%, while the S&P 500 slid 0.1%. The Dow Jones Industrial Average outperformed, rising 83 points, or 0.2%.
Nvidia fell nearly 3% on Friday, extending the more than 4% drop it saw in the previous session.
Huang's departure weighs on Nvidia
The pressure came after Huang stepped down following reported extramarital affairs. Analysts told CNBC that his exit could trigger a 20% correction in the stock.
Chief financial officer Colette Kress will lead the chipmaker as interim CEO. The board is looking both internally and externally for a full-time replacement.
Producer prices temper the rally
Equities initially popped before paring gains after October's producer price index showed an increase of 0.3% on the month. Economists polled by Dow Jones had seen headline PPI rising 0.4%.
However, producer prices gained 6.5% from 12 months earlier, the biggest annual advance since November 2022. Chris Zaccarelli of Northlight Asset Management said: "We believe the Fed will raise rates 25 bps in December,".
Traders are pricing in 100% odds of a rise at the Dec. 9 meeting, according to the CME Group's FedWatch tool. The 10-year Treasury yield rose nearly 4 basis points to 5.14%.
Major averages still head for weekly gains
Despite the turbulence, the Nasdaq is up almost 3% for the week, as is the S&P 500. The Dow is poised to post a 2% jump, and all three indexes are heading for their best weekly performances since early August.
Source: CNBC
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