Nasdaq falls on Friday as Nvidia keeps sliding, but major averages are up for week

The Nasdaq Composite fell on Friday as Nvidia shares added to their recent losses, though the index still headed for a winning week alongside the other two major averages.

The tech-heavy Nasdaq dropped 1.7%, while the S&P 500 slid 1%. The Dow Jones Industrial Average traded down 70 points, or 0.1%.

Equities initially popped after October’s producer price index reading — a measure of wholesale inflation — showed an increase of 0.3% on the month. Economists polled by Dow Jones had seen headline PPI rising 0.4%.

However, the report also showed producer prices gaining 6.5% from 12 months earlier — the biggest annual advance since November 2022.

“Today’s PPI data — which shows some signs of improving, albeit still too-high — is unlikely to change the Fed’s approach in December because the CPI data was already outside their comfort zone,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

“We believe the Fed will raise rates 25 bps in December,” he also said, adding that he considers January a “live meeting.”

Nvidia shares weighed on the broader market for another day. The stock fell more than 4% Friday, extending the more than 4% drop it saw in the previous session. The pressure came after the exit of the scandal-hit chipmaker’s founder and CEO Jensen Huang.

HSBC downgraded the chipmaker Friday to hold, believing that the stock will languish until the company lays out a permanent succession plan.