Tech was the biggest market mover once again this week. For the Nasdaq Composite (IXIC), Monday started off strong with the index's best single-day percentage gain since May. The rest of the week went downhill quickly, however, as traders rotated out of tech amid persistent valuation concerns. While Friday seems to be bringing some reprieve, the benchmark is still on track for a weekly loss.
The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) both managed to brush off the tech selloff for longer, with the Dow closing above 48,000 for the first time on Wednesday. Both indexes are still on track for weekly gains, despite suffering their worst daily percentage drops since Oct. 10 on Thursday. Notably, the government shutdown ended this week, but investors are now wary of the Federal Reserve's upcoming interest rate decision.
Sectors to Watch
Chip stocks have been front and center as investors muse over AI bubble concerns. News that SoftBank sold its entire Nvidia (NVDA) stake for $5.83 billion weighed on the chip sector, while Japan-based Kioxia's disappointing earnings and revenue provided headwinds later in the week. Airline stocks were also in focus amid flight reductions and delays, while save-haven gold futures have been red hot, pushing these gold stocks back toward their recent record highs.
Big-Time Earnings
Though economic data has been sparse throughout the shutdown, there was no shortage of earnings reports to unpack this week. Walt Disney (DIS) was one of the biggest companies to announce results, with shares falling sharply on disappointing revenue. Quantum computing concern Rigetti Computing (RGTI) also fell after a revenue miss, while AI stock BigBear.ai (BBAI) surged after a mixed report and acquisition announcement.
Coming Up Next
Though the government is in the process of reopening, the White House said that October jobs and inflation data reports might never be released due to impaired federal statistics. Still, there is plenty of economic data scheduled for release next week, while highly anticipated Nvidia earnings are due out after the close on Wednesday, Nov. 19. Streaming giant Netflix (NFLX) recently announced a long-anticipated 10-for-1 stock split that will go into effect Monday.
