AMD Slides 8.75% as Chip Stocks Weaken

Inflation, Rate Pressure Keep Tightening Fears Alive

All Three Major Indexes Still Rose for the Week

US stocks ended mixed on November 13 as uncertainty surrounding Nvidia and rising interest rates weighed on sentiment. Fallout from CEO Jensen Huang’s resignation continued, dragging down AI chip and data-center-related stocks. The Dow Jones Industrial Average, supported by gains in financial and healthcare shares, still finished slightly higher.

The tech-heavy Nasdaq Composite fell 229.82 points, or 0.91%, to 25,136.27. The S&P 500 declined 30.73 points, or 0.40%, to 7,561.67. The Dow added 50.46 points, or 0.10%, to close at 52,347.55.

Nvidia fell 2.01% to $162.85. That followed a 4.34% drop a day earlier after the shock of Huang’s resignation, leaving the stock down for a second straight session. It has now fallen for six consecutive weeks, its longest losing streak since October 2012.

Uncertainty over the succession process also persisted. The Financial Times reported that Nvidia’s board approached Arm CEO Rene Haas while searching for its next chief executive. Haas previously worked at Nvidia. Chief Financial Officer Colette Kress is currently serving as interim CEO.

Advanced Micro Devices and Broadcom, which had risen a day earlier as investors turned to Nvidia’s rivals, fell 8.75% and 4.8%, respectively. The Philadelphia Semiconductor Index dropped 3.4%. AI server maker Dell Technologies slid 7.18%, and networking equipment maker Cisco Systems fell 6.24%.

AI infrastructure names CoreWeave and Nebius also declined. Data-center-related companies IREN and Applied Digital fell 6.7% and 5.8%, respectively. “Confidence in the market has been damaged,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. AI and technology stocks will likely remain volatile for the time being.

The US Labor Department said the producer price index rose 0.3% in October from a month earlier, slowing from September’s 1.4% increase. From a year earlier, however, producer prices rose 6.5%, the fastest pace since November 2022.

Federal Reserve officials also continued to deliver hawkish remarks. Mary Daly, president of the Federal Reserve Bank of San Francisco, said the policy rate needs to move higher. Susan Collins, president of the Federal Reserve Bank of Boston, said additional tightening is needed to respond to elevated inflation. CME FedWatch data showed markets treating at least a 0.25 percentage-point rate increase in December as a near certainty. The odds of a 0.5 percentage-point move also rose to about 10%.

The yield on the 10-year US Treasury note rose to 5.15%. Technology stocks weighed on the indexes, but more than 60% of S&P 500 components still advanced. Eli Lilly, Visa and Mastercard each gained about 1.3%, while Microsoft rose 0.2%.

Oil prices were mixed near flat. Brent crude for January delivery rose 2 cents to settle at $95.84 a barrel, while West Texas Intermediate crude for December delivery fell 18 cents, or 0.20%, to $88.56. Concerns over supply disruptions in the Middle East coincided with expectations of an oversupplied oil market.