Weak End. Stocks sold off on Friday, but thanks to a lot of investor rotation, the market ended the week higher than it started.
The Nasdaq Composite fell 0.9% on Friday while the S&P 500 dropped 0.4%. Both indexes recorded a weekly gain, up 2.3% and 2.5%, respectively. The Dow Jones Industrial Average rose o.1%, or 50 points today, up 2.1% on the week.
The biggest story of the past few days has been Jensen Huang's resignation as Nvidia CEO after more than 30 years in the role, and the events leading up to his ouster. There are other market narratives in play, but it's tough to compete with a once-beloved tech titan's fall from grace -- especially when it involves infidelity and suspicions of espionage.
Nvidia ended the week nearly 13% lower, and the stock has slipped into red for the year. By Friday's closing bell, it sank to its lowest level since July 2025, according to Dow Jones Market Data.
But despite the AI darling's double-digit drop, the PHLX Semiconductor Index actually ended the week up more than 8%. In fact, AMD and Broadcom were the S&P 500's best weekly performers, adding 19% and 18%, respectively, even though they were today's biggest laggards. Other AI stocks, like Ciena, Seagate, and Coherent, were also among the week's biggest gainers, with each name posting double-digit returns.
Don't worry, though -- the days of worrying about the AI trade are far from over, and next week will bring a new set of challenges. Nvidia is set to release quarterly results on Tuesday in what's likely to be a unique earnings call.
Beyond Nvidia, Anthropic's initial public offering is expected to price on Wednesday, and begin trading on Thursday. The company's IPO comes at an interesting time for the AI trade. If its public trading debut is met with strong buying, that could reignite enthusiasm around AI. If not, it could open a whole other can of worms for traders to fret about. Watch our TV show on Fox Business Fridays at 7:30 p.m. ET and Saturdays and Sundays at 9:30 and 10:30 a.m. ET. This week, First Eagle Investments' Matthew McLennan on alternatives to the AI trade. Plus, investors await Anthropic's debut -- and release of Grand Theft Auto VI.
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This Weekend's Magazine
The Calendar
Next week is another pivotal one for the AI trade with Nvidia releasing earnings on Tuesday. Nvidia's CFO, Colette Kress, has been named interim CEO, and will try to reassure Wall Street on the company's prospects without Huang, who had been president and CEO since its founding in 1993.
On Wednesday, Anthropic is expected to price its initial public offering before trading begins on its shares on the Nasdaq exchange on Thursday. A warm reception for the first pure-play AI stock would go a long way toward easing concerns about the whole AI complex. Anthropic has about $900 billion in spending commitments to cloud providers, chip suppliers, and leases for data centers.
While Nvidia's earnings are front and center this week, retailers will also have their turn on the stage. Home Depot releases its earnings on Tuesday, followed by Lowe's and Target on Wednesday, and Walmart on Thursday.
-- Dan Lam
What We're Reading Today
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CoreWeave and Nebius Lost a Friend in Huang. What Comes Next for Neoclouds.
And this week's cover story: Even in Crisis, Nvidia Stock Is Still a Buy
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