[BRIEFING.COM] There might be some pattern recognition today that leads to a better-looking market by the close. To that end, there was broad-based selling to begin the day, support held at 7,500 for the S&P 500, and the market has been grinding its way higher over the course of the last three hours or so.

The S&P 500 (-0.6%) continues to run in negative territory but hasn't encountered any stepped-up selling interest since the opening hour of today's action that had it down 1.2%. Session lows for the Nasdaq Composite, which had been down 1.9%, the S&P 500 information technology sector, down 3.1%, and the Philadelphia Semiconductor Index, down 6.5%, were established shortly thereafter.

On a better note, the equal-weighted S&P 500 (+0.1%) has worked its way back to positive ground after being down 0.6%.

[BRIEFING.COM] The Dow has improved from its earlier decline and is now little changed, separating it from the weaker broader market. Its muted performance reflects an even split beneath the surface, with 15 components higher and 15 lower. The Nasdaq Composite remains down 1.1%, while the Russell 2000 is down 0.6%.

Coca-Cola (KO 99.08, +1.64, +1.7%), Visa (V 426.37, +6.06, +1.4%), Walmart (WMT 127.83, +1.64, +1.3%), Procter & Gamble (PG 169.72, +1.69, +1.0%), IBM (IBM 247.14, +2.47, +1.0%), Johnson & Johnson (JNJ 286.42, +2.90, +1.0%), and Chevron (CVX 218.68, +2.33, +1.1%) are the winning standouts.

Several of those names offer defensive or mature, cash-generative exposure. Walmart's advance also comes amid broader interest in consumer staples, helping counter the weakness elsewhere in the Dow.

On the other side, Cisco Systems (CSCO 95.54, -6.47, -6.3%) is losing ground after its earnings report and outlook and is followed by NVIDIA (NVDA 160.96, -5.23, -3.2%), Caterpillar (CAT 594.73, -10.55, -1.7%), and Alphabet (GOOGL 295.03, -3.67, -1.2%) on the list of losers.

That mix includes technology-oriented names as well as the economically sensitive Caterpillar, offsetting the Dow's consumer, health care, and energy winners.

[BRIEFING.COM] The major averages are lower at midday, with the Nasdaq Composite (-1.2%) trailing the group as weakness in semiconductors, AI infrastructure names, and the broader technology sector drives the retreat. The S&P 500 found support when it tested the 7,500 level and has moved off its low, marking some time with a 10-yr Treasury note yield that has moved off its high of 5.17% to its current level of 5.13%. 

Semiconductors remain the main pressure point. NVIDIA (NVDA 160.92, -5.26, -3.2%), Advanced Micro Devices (AMD 523.58, -61.72, -10.5%), Broadcom (AVGO 345.58, -18.78, -5.1%), Intel (INTC 58.76, -2.44, -4.0%), Micron Technology (MU 764.36, -34.08, -4.3%), and Applied Materials (AMAT 362.88, -18.07, -4.74%), which reported earnings results after yesterday's close, are among the notable laggards. The group is contending with profit-taking, uncertainty surrounding NVIDIA's leadership, concerns about potential chip-export restrictions, and downgrades of Broadcom and Applied Materials.

The weakness extends beyond chipmakers into the AI infrastructure complex. Dell Technologies (DELL 340.61, -30.56, -8.2%), Corning (GLW 112.38, -6.84, -5.7%), Cisco Systems (CSCO 95.69, -6.32, -6.20%), which also reported results after yesterday's close, and Seagate Tech (STX 519.96, -25.18, -4.6%) are under pressure as investors reassess the pace and execution of AI buildouts. Capacity constraints and data-center delays have added to those questions, even though longer-term demand for AI compute remains strong.

Today's losses are fairly broad-based, evidenced by negative advance-decline lines at both the NYSE and Nasdaq. The S&P 500 information technology sector (-2.1%) is the biggest laggard, but it has rbounced back some from an earlier 3.1% decline.

Pockets of relative sector strength include consumer staples (+1.4%), financials (+0.6%), utilities (+0.5%), energy (+0.4%), and health care (+0.3%). That mix reflects a preference for defensive and lower-volatility exposure while technology remains unsettled.

The October Producer Price Index initially produced some relief because headline inflation was softer than expected, while core PPI matched expectations. However, September's headline and core readings were both revised higher. On a year-over-year basis, final demand prices increased 6.5% in October, the largest gain since November 2022, while core producer prices were up 5.0%, unchanged from September.

The key takeaway is that wholesale inflation remains a big problem. On a related note, New York Fed President Williams (FOMC voter) and Chicago Fed President Gooslbee (2027 FOMC voter) both said the Fed has more work to do to get inflation back down to the 2.0% target.

The 10-yr note yield reached 5.17% in the wake of the PPI report before easing to 5.13%. That pullback has helped the stock market stabilize, but it has not been enough to reverse the reassessment taking place across technology and AI-related stocks.

Reviewing today's data:

• October PPI 0.3% vs. 0.4% Briefing.com consensus; prior revised to 1.4% from 1.3%
• October Core PPI 0.3% vs. 0.3% Briefing.com consensus; prior revised to 0.8% from 0.7%
• 11/07 EIA Natural Gas Inventories +61 bcf; prior +77 bcf

[BRIEFING.COM] The Nasdaq Composite (-1.2%) has recovered a portion of today's losses (it had been down as much as 1.9%) but continues to lag the other indices.

Semiconductors remain the main pressure point, with the PHLX Semiconductor Index down 4.5%. Advanced Micro Devices (AMD 523.33, -61.97, -10.59%), Broadcom (AVGO 344.55, -19.81, -5.44%), Intel (INTC 58.45, -2.75, -4.49%), Micron Technology (MU 759.66, -38.78, -4.86%), and NVIDIA (NVDA 160.98, -5.21, -3.14%) are among the underperformers.

Weakness has spread across the broader AI infrastructure trade, though, including Dell Technologies (DELL 336.92, -34.26, -9.23%), Corning (GLW 111.77, -7.45, -6.25%), Cisco Systems (CSCO 96.00, -6.01, -5.89%), Oracle (ORCL 123.97, -3.14, -2.47%), and Seagate Technology (STX 517.47, -27.67, -5.08%).

The AI trade is contending with some general profit-taking activity but also with the leadership uncertainty at NVIDIA (NVDA 160.98, -5.21, -3.14%), questions about the pace and execution of AI buildouts, concerns about chip export restrictions, and company-specific concerns.

Industry capacity constraints are another consideration. Cerebras Systems (CBRS 105.98, +8.23, +8.42%) CEO Andrew Feldman told CNBC that data centers are delayed across the industry, even as momentum in AI compute remains strong. That tension between robust long-term demand and near-term execution challenges is contributing to the reassessment across the AI infrastructure complex.

The market's ability to move away from its lows remains tied closely to whether selling in semiconductors and the wider AI trade eases more.

[BRIEFING.COM] The market remains near its session lows, though small-cap stocks have edged off their weakest levels. The Nasdaq Composite is down 1.5%, while the Russell 2000 is down 0.7%. The continued gap between the two reflects the heavier selling in technology and other higher-beta areas.

That dynamic has put the Invesco S&P 500 Low Volatility ETF (SPLV 78.40, +0.38, +0.49%) ahead of the Invesco S&P 500 High Beta ETF (SPHB 132.00, -3.98, -2.92%) today. The two styles have traded the advantage back and forth throughout the week, but low-volatility stocks have the upper hand today as investors favor less volatile exposure amid the technology sector's selling pressure.

Long-term rates remain an important constraint for high-beta names. The 10-yr note yield is at 5.14%, up four basis points today. That backdrop leaves the market sensitive to any renewed rate pressure and makes a recovery in high-beta stocks more dependent on a moderation in technology selling.

[BRIEFING.COM] The major indices continue to trade near their session lows, showing little recovery from the morning retreat. The Dow is down 0.3%, the S&P 400 is down 0.8%, the Russell 2000 is down 0.9%, the S&P 500 is down 1.0%, and the Nasdaq Composite is down 1.7%.

That lineup points to relatively broad-based selling rather than weakness confined to the largest technology stocks.

Still, the most concentrated selling is in the S&P 500 information technology sector, which is down 3.1%. The magnitude of today's decline stands out, although the sector remains up 0.6% for the week. The market's ability to move away from session lows will depend in large part on whether that technology pressure begins to ease.

[BRIEFING.COM] The S&P 500 found some needed support at the 7,500 level. Selling efforts subsided there, yet there is a good bit of work left to do to get back to the unchanged mark.

Breadth favors decliners by a roughly 7-to-6 margin at the NYSE and by a 2-to-1 margin at the Nasdaq.

There is some defensive posturing in today's tape, evidenced by the relative strength seen in sectors like consumer staples (+1.3%), utilities (+0.4%), and health care (+0.3%).

Separately, the financials sector (+0.7%) is holding up well, supported by gains in the insurers. American Express (AXP 320.55, +2.49, +0.8%), Mastercard (MA 661.43, +8.83, +1.4%), and Visa (V 426.61, +6.30, +1.5%) are also contributing, keying off OpenAI's introduction of ChatGPT wallet, which was built in partnership with American Express, Mastercard, and Visa.

[BRIEFING.COM] The morning decline has deepened since the opening update, taking the S&P 500 back down to test the 7,500 level. Selling interest is fairly widespread, with the Nasdaq Composite down 1.8% and the Russell 2000 down 0.6%.

Information technology is the main pressure point, with the S&P 500 sector down 2.6%. Semiconductor stocks remain especially weak, evidenced by a 5.5% drop in the Philadelphia Semiconductor Index. The group is contending with weakness in NVIDIA (NVDA 159.52, -6.68, -4.0%) and downgrades of Broadcom (AVGO 341.46, -22.90, -6.28%) to Neutral from Buy at Rothschild & Co Redburn and Applied Materials (AMAT 356.44, -24.50, -6.43%) to Hold from Buy at Summit Insights.

There are still some pockets of strength. The consumer staples sector is up 0.8%, the energy sector is up 0.4%, and the financials sector is up 0.3%.

The slide to session lows has occurred even as the 10-yr note yield has eased to 5.13% from an earlier high of 5.17%. That divergence suggests the immediate pressure is concentrated more heavily in equities, particularly technology, although uncertainty surrounding inflation and the Fed policy outlook remains an important backdrop.

[BRIEFING.COM] The early action has not maintained the positive bias that was seen before the opening bell. The Nasdaq Composite is down 0.8%, underperforming the Russell 2000, which is down 0.1%, as the S&P 500 information technology sector (-1.6%) has gotten off to a disappointing start.

Semiconductor stocks are a focal point of the weakness. The PHLX Semiconductor Index is down 3.9%, with NVIDIA (NVDA 161.84, -4.35, -2.62%) quickly surrendering its premarket gain, reinforcing the pressure on the tech-heavy Nasdaq.

Rising long-term rates have also acted as a headwind. The 2-yr note yield is down two basis points to 4.86%, but the 10-yr yield is up six basis points at 5.16%.

The rate backdrop reflects continued inflation concerns. Bloomberg reported that New York Fed President John Williams, an FOMC voter, said the Fed needs to take further action to contain price pressures. Chicago Fed President Austan Goolsbee, a 2027 FOMC voter, told CNBC that the U.S. is not on a path back to 2% inflation and that the Fed still has work to do.

U.S. equity futures point to a higher open, although Chicago Fed President Austan Goolsbee (non-FOMC voter) told CNBC that persistent inflation means the Fed still has work to do. Notably, both the 2-yr note yield (4.87%) and the 10-yr note yield (5.15%) have relinquished all of the knee-jerk gains posted after the release of the October PPI report at 8:30 a.m. ET.

Asian markets finished mostly lower on Friday as uncertainty surrounding Nvidia's leadership transition and the possibility of tighter U.S. technology restrictions weighed on sentiment ahead of next week's Trump-Xi summit, although Japanese equities bucked the regional weakness. Japan's Nikkei gained 0.5%, extending its weekly advance to 6.5%, its strongest since June, with Recruit Holdings (+5%), Advantest (+2%), and Tokyo Electron (+2%) advancing as technology shares recovered from the previous week's selloff, while reports of strong demand for Anthropic's anticipated IPO provided additional support for AI-related sentiment. China's Shanghai Composite declined 0.6% and the Shenzhen Component dropped 2.1%, with Eoptolink Technology (-9%), Zhongji Innolight (-8%), Foxconn Industrial Internet (-8%), and BeOne Medicines (-3%) retreating amid technology trade concerns, while October new loans unexpectedly contracted by CNY100 bln and total social financing fell short of expectations, highlighting continued weakness in credit demand. Hong Kong's Hang Seng lost 1.6% for a third consecutive decline, led lower by Z.AI (-10%), MiniMax (-8%), Tencent (-3%), and J&T (-2%), while Adaspace Technology (-2%) slipped in its trading debut despite third-quarter GDP growth accelerating to 5.2% yr/yr. South Korea's KOSPI fell 1.0% after reversing an early gain of 2.1%, with Samsung Biologics (unch), LG Chem (-1%), and Naver (unch) retreating despite advances in Samsung Electronics (+3%) and SK Hynix (+3%). China's October M2 money supply growth slowed to 7.1% yr/yr from 7.2%, while outstanding loan growth eased to 4.7%, reinforcing concerns that existing policy support has yet to generate a sustained recovery in borrowing activity. India's Sensex declined 0.4% as the country's October trade deficit widened to USD39.88 bln from USD30.21 bln, with imports increasing to USD89.35 bln and exports rising to USD49.47 bln. Investors also remained cautious ahead of U.S. producer inflation data, which could influence expectations for Federal Reserve policy following this week's stronger-than-expected consumer inflation report.

• In economic data:
  • China's October New Loans CNY-100.0 bln (expected CNY80.0 bln; prior CNY1,080.0 bln); Total Social Financing CNY1,150.0 bln (expected CNY1,420.0 bln; prior CNY3,550.0 bln)
  • China's October M2 Money Stock +7.1% yr/yr (expected +7.2%; prior +7.2%) and Outstanding Loan Growth +4.7% yr/yr (expected +4.8%; prior +4.8%)
  • Hong Kong's Q3 GDP +1.9% qtr/qtr (expected +1.9%; prior -0.7%) and +5.2% yr/yr (expected +5.2%; prior +4.2%)
  • India's October Exports USD49.47 bln (prior USD44.40 bln); Imports USD89.35 bln (prior USD74.61 bln); Trade Balance USD-39.88 bln (prior USD-30.21 bln)
  • South Korea's September M2 Money Supply +7.0% yr/yr (prior +7.2%) and M3 Money Supply KRW6,393.8 bln (prior KRW6,368.9 bln)
  • November Thomson Reuters/Ipsos Consumer Sentiment: China 70.44 (prior 69.29); India 64.54 (prior 64.32); South Korea 43.00 (prior 44.06); Australia 44.06 (prior 45.62); Japan 37.67 (prior 38.96)

European markets trade mixed as rising oil prices, elevated bond yields, and persistent inflation concerns weigh on sentiment, offsetting support from corporate earnings and strength in energy shares. Germany's DAX trades essentially unchanged after briefly reaching record territory, with Brenntag (+2%), E.ON (+2%), and RWE (+1%) advancing, the latter two supported by reports of a potential government acquisition of their stakes in Urenco, while Rheinmetall (-2%), Vonovia (-1%), and MTU Aero Engines (-1%) lag. France's CAC 40 slips 0.1%, with luxury shares LVMH (-1%), Hermes (-2%), and Kering (-2%) retreating while TotalEnergies (+1%) benefits from firmer crude prices, as French consumer inflation accelerates to 3.4% yr/yr in October from 3.1% in September. London's FTSE 100 edges up 0.1%, supported by Shell (+1%), BP (+1%), and Aviva (+2%) following an encouraging business update, although weakness in miners Antofagasta (-2%), Anglo American (-2%), and Glencore (-1%), along with declines in Rolls-Royce (-2%) and BAE Systems (-1%), limits the advance. Eurozone third-quarter GDP expands 0.4% qtr/qtr and 1.3% yr/yr, both in line with expectations, while employment growth of 0.1% qtr/qtr falls short of forecasts and the September trade deficit narrows to EUR10.3 bln but remains wider than anticipated. The STOXX Europe 600 is little changed, declining 0.1%, while Italy's FTSE MIB and Spain's IBEX 35 gain 0.1% each, reflecting cautious trading ahead of the weekend amid renewed uncertainty surrounding monetary policy and geopolitical developments.

• In economic data:
  • Eurozone Q3 GDP +0.4% qtr/qtr (expected +0.4%; prior +0.6%) and +1.3% yr/yr (expected +1.3%; prior +1.2%)
  • Eurozone Q3 Employment Change +0.1% qtr/qtr (expected +0.2%; prior +0.1%) and +0.5% yr/yr (expected +0.4%; prior +0.5%)
  • Eurozone September Trade Balance EUR-10.3 bln (expected EUR-4.5 bln; prior EUR-16.6 bln)
  • Germany's October WPI +0.4% m/m (expected +0.4%; prior +1.9%) and +8.8% yr/yr (prior +8.7%)
  • France's October CPI +0.4% m/m (expected +0.4%; prior -0.3%) and +3.4% yr/yr (expected +3.4%; prior +3.1%); HICP +0.4% m/m (expected +0.4%; prior -0.3%) and +3.7% yr/yr (expected +3.8%; prior +3.8%)
  • Spain's October CPI +0.6% m/m (expected +0.6%; prior +0.3%) and +4.9% yr/yr (expected +4.9%; prior +4.9%); Core CPI +3.1% yr/yr (expected +3.1%; prior +3.1%)
  • Switzerland's October PPI +0.9% m/m (expected +0.2%; prior +0.3%) and +0.9% yr/yr (prior -0.2%)
  • Italy's September Trade Balance EUR2.083 bln (expected EUR2.840 bln; prior EUR1.824 bln)

The equity futures market saw a nice pop in the wake of the October Producer Price Index report that was better-than-feared at the headline level, but not necessarily as comforting as it appeared when taking into account the upward revisions for September that neutralized the October headline relief.

The index for final demand was up 0.3% month-over-month (Briefing.com consensus: 0.4%) following an upwardly revised 1.4% increase (from 1.3%) in September. Excluding food and energy, the index for final demand rose 0.3% month-over-month, as expected, following an upwardly revised 0.8% increase (from 0.7%) in September.

On a year-over-year basis, the index for final demand was up 6.5%--the lartgest increase since November 2022--versus 6.3% in September. Excluding food and energy, the index for final demand was up 5.0%, unchanged from September.

The move in the equity futures market was helped by a knee-jerk drop in Treasury yields. The 2-yr note yield has dropped four basis points to 4.84%, and the 10-yr note yield has risen two basis points to 5.12% after hitting 5.15% earlier.

The key takeaway from the report is that inflation at the wholesale level is still a big problem. The October report is not the source of comfort the initial reaction has made it out to be.

Equity futures are pointing to a modestly higher open, with S&P 500 futures 21 points above fair value. Overseas trading has been mixed, with Japan outperforming a mostly lower Asian session and European markets showing little net direction.

The October Producer Price Index and core PPI are due at 8:30 ET and will be watched for their implications for Federal Reserve policy expectations following this week's stronger-than-expected consumer inflation report.

The 2-yr note yield is down one basis point to 4.87%, and the 10-yr note yield is up five basis points to 5.15%, digesting the take from New York Fed President Williams that the Fed will need to take actions over time to get inflation back down to the 2% target, but that the Fed needs to be careful in the process not to cause undue harm to the employment side of the Fed's mandate.

Separately, several companies, notably Cisco (CSCO), Applied Materials (AMAT), and Cerebras Systems (CBRS), are moving on earnings and guidance.

Today's remaining economic calendar:

• 8:30 AM ET: October PPI; Briefing.com consensus 0.4%; prior 1.3%
• 8:30 AM ET: October Core PPI; Briefing.com consensus 0.3%; prior 0.7%
• 10:30 AM ET: 11/07 EIA Natural Gas Inventories; prior +77 bcf

In corporate news:

• Applied Materials (AMAT 378.00, -2.95, -0.8%): beats Q4 EPS by $0.10, beats on revs; guides Q1 EPS in-line, revs in-line
• Cerebras Systems (CBRS 110.34, +12.59, +12.9%) issued fourth-quarter revenue guidance above expectations and said it expects to triple revenue in 2027.
• Cisco (CSCO 98.30, -3.71, -3.6%) topped fiscal first-quarter earnings and revenue estimates and issued above-consensus guidance for the second quarter while raising its fiscal 2027 outlook.
• Modine Manufacturing (MOD 142.02, +35.92, +33.9%) is reportedly in discussions to be acquired by Samsung.
• Tesla (TSLA 399.57, +2.11, +0.5%): merger talks with SpaceX (SPCX 140.23, +0.29, +0.2%) are progressing, according to Bloomberg

Reviewing overnight developments:

Most Asian markets finished lower, while Japan bucked the regional weakness. Nikkei reported that uncertainty surrounding Nvidia's leadership transition and the possibility of tighter U.S. technology restrictions weighed on sentiment ahead of next week's Trump-Xi summit.

In news:

• Technology-related concerns pressured shares in China and Hong Kong, while Japanese technology stocks recovered from the prior week's selloff.
• Investors remained cautious ahead of the U.S. producer inflation report.

In economic data:

• China's October New Loans CNY-100.0 bln (expected CNY80.0 bln; prior CNY1,080.0 bln); Total Social Financing CNY1,150.0 bln (expected CNY1,420.0 bln; prior CNY3,550.0 bln)
• China's October M2 Money Stock +7.1% yr/yr (expected +7.2%; prior +7.2%) and Outstanding Loan Growth +4.7% yr/yr (expected +4.8%; prior +4.8%)
• Hong Kong's Q3 GDP +1.9% qtr/qtr (expected +1.9%; prior -0.7%) and +5.2% yr/yr (expected +5.2%; prior +4.2%)
• India's October Exports USD49.47 bln (prior USD44.40 bln); Imports USD89.35 bln (prior USD74.61 bln); Trade Balance USD-39.88 bln (prior USD-30.21 bln)
• South Korea's September M2 Money Supply +7.0% yr/yr (prior +7.2%) and M3 Money Supply KRW6,393.8 bln (prior KRW6,368.9 bln) November Thomson Reuters/Ipsos Consumer Sentiment: China 70.44 (prior 69.29); India 64.54 (prior 64.32); South Korea 43.00 (prior 44.06); Australia 44.06 (prior 45.62); Japan 37.67 (prior 38.96)

--- Equity Markets ---

• Japan's Nikkei : +0.5%
• Hong Kong's Hang Seng : -1.6%
• China's Shanghai Composite : -0.6%
• India's Sensex : -0.4%
• South Korea's Kospi : -1.0%
• Australia's All Ordinaries : -0.8%

European markets trade mixed as higher oil prices, elevated bond yields, and inflation concerns offset support from energy shares and corporate earnings.

In news:

• Energy shares have benefited from firmer crude prices, while luxury, mining, and defense names have shown weakness.
• Reports that the German government could acquire stakes in Urenco have supported E.ON and RWE.

In economic data:

• Eurozone Q3 GDP +0.4% qtr/qtr (expected +0.4%; prior +0.6%) and +1.3% yr/yr (expected +1.3%; prior +1.2%) Eurozone Q3 Employment Change +0.1% qtr/qtr (expected +0.2%; prior +0.1%) and +0.5% yr/yr (expected +0.4%; prior +0.5%) Eurozone September Trade Balance EUR-10.3 bln (expected EUR-4.5 bln; prior EUR-16.6 bln)
• Germany's October WPI +0.4% m/m (expected +0.4%; prior +1.9%) and +8.8% yr/yr (prior +8.7%)
• France's October CPI +0.4% m/m (expected +0.4%; prior -0.3%) and +3.4% yr/yr (expected +3.4%; prior +3.1%); HICP +0.4% m/m (expected +0.4%; prior -0.3%) and +3.7% yr/yr (expected +3.8%; prior +3.8%)
• Spain's October CPI +0.6% m/m (expected +0.6%; prior +0.3%) and +4.9% yr/yr (expected +4.9%; prior +4.9%); Core CPI +3.1% yr/yr (expected +3.1%; prior +3.1%)
• Switzerland's October PPI +0.9% m/m (expected +0.2%; prior +0.3%) and +0.9% yr/yr (prior -0.2%)
• Italy's September Trade Balance EUR2.083 bln (expected EUR2.840 bln; prior EUR1.824 bln)

--- Equity Markets --- 

• STOXX Europe 600 : -0.1%
• Germany's DAX : 0.0%
• U.K.'s FTSE 100 : +0.1%
• France's CAC 40 : -0.1%
• Italy's FTSE MIB : +0.1%
• Spain's IBEX 35 : +0.1%

[BRIEFING.COM] The major averages followed a Wednesday rally with a volatile Thursday that left the S&P 500 (-0.4%), Nasdaq (-0.4%), and Dow (-0.4%) with modest losses while the Russell 2000 (-1.7%) underperformed. The S&P 500 briefly overcame its lower start, making a run at its 50-day moving average (7671), before succumbing to renewed pressure that left the index in negative territory.

The trading day started with a weak showing from the technology sector (-0.4%), where NVIDIA (NVDA 166.19, -7.54, -4.34%) was down more than 14.0% at the open after CEO Huang resigned in the wake of a New York Times report about Mr. Huang's second extramarital affair, this time within the company. The sharp starting loss sent the stock to a level not seen since July 2025, but a chunk of that loss was reclaimed quickly, followed by an extension of the rebound as the day went on.

NVIDIA's early weakness knocked down the major averages, but they did not go down without a fight, making a brief late-morning appearance in positive territory before renewed selling forced them back into negative territory.

The performance of the technology sector guided the market's overall direction throughout the day, but the group finished near the middle of the pack while financials (-0.7%) health care (-0.7%), industrials (-0.9%), and materials (-1.5%) recorded wider losses.

The AI trade did not move uniformly lower. Advanced Micro Devices (AMD 585.30, +32.40, +5.86%) and Broadcom (AVGO 364.36, +19.14, +5.54%) attracted interest as potential beneficiaries of a competitive opening, while Alphabet's (GOOG 295.35, +4.72, +1.62%) internally developed TPU platform offered another alternative to NVIDIA hardware. That relative strength helped technology recover from its early shock, but it was not enough to sustain the broader market's rebound into the close.

Alphabet's strength helped the communication services sector (+0.4%) finish in positive territory while energy (+1.5%) was the only other group that ended higher. WTI crude rose 2.8% to $88.79/bbl, reversing an early decline amid competing speculation about a diplomatic solution to the Iran conflict or additional military action.

The market also had to contend with growing expectations for a 50-basis point rate hike in December, which kept Treasuries under daylong pressure after Wednesday's closure. The 2-yr yield rose 14 basis points to 4.88%, just eight basis points shy of its 2026 high from September, while the 10-yr yield climbed 12 basis points to 5.10%, rising back above its 50-day moving average (5.051%).

The failed rebound was the defining feature of the close. NVIDIA's leadership shock remained the central company event, but rising rate expectations and a renewed rise in the price of oil broadened the market's concerns beyond one stock.

• Russell 2000 +12.8% YTD
• S&P Midcap 400 +11.5% YTD
• S&P 500 +10.9% YTD
• Nasdaq Composite +9.1% YTD
• Dow Jones Industrial Average +8.8% YTD

Reviewing today's data:

• Weekly Initial Claims 200K vs. 195K Briefing.com consensus; prior revised to 191K from 189K, Weekly Continuing Claims 1697K; prior 1718K
• October Existing Home Sales 3.75M vs. 3.94M Briefing.com consensus; prior revised to 3.97M from 3.99M
• 11/07 EIA Crude Oil Inventories +4.657M; prior -0.865M
• October Treasury Budget -$404.0B vs. -$300.0B Briefing.com consensus; prior -$26.9B

Friday's economic calendar:

• 8:30 AM ET: October PPI; Briefing.com consensus 0.4%; prior 1.3%
• 8:30 AM ET: October Core PPI; Briefing.com consensus 0.3%; prior 0.7%
• 10:30 AM ET: 11/07 EIA Natural Gas Inventories; prior +77 bcf