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Wall Street’s major averages saw mixed results on Friday as the Nasdaq Composite and S&P 500 retreated from early gains. The tech-heavy Nasdaq fell 0.7%, while the S&P 500 declined 0.4%. In contrast, the Dow Jones Industrial Average managed a gain of 43 points, or 0.1%.
Nvidia Volatility and Leadership Shakeup
Nvidia shares remained a focal point for investors following the resignation of CEO Jensen Huang. Huang stepped down on Thursday after reports emerged regarding a romantic relationship with Kimberly Powell, the company’s vice president of health care, as well as another affair with an unnamed employee. The company is currently under scrutiny following a board investigation into Huang’s relationship with a businesswoman linked to foreign intelligence.
HSBC analyst Frank Lee downgraded Nvidia from buy to hold, slashing his price target from $365 to $170. Lee noted that uncertainties will likely persist until a permanent successor is named and demonstrates clear execution capabilities. Despite the turmoil, a flash poll of CNBC’s Financial Advisor Council members indicated that 18 respondents plan to maintain their current Nvidia allocations.
Market Movements and Corporate News
Cisco Systems saw a neutral-to-positive reaction from analysts following its fiscal first-quarter earnings report. While the company beat estimates, Barclays analyst Tim Long maintained an equal-weight rating, citing a meaningful quarter-over-quarter decline in hyperscaler AI orders. Goldman Sachs analyst Michael Ng also kept a neutral rating, noting an “orders miss” despite better-than-expected margin guidance.
In the cybersecurity sector, KeyBanc upgraded Palo Alto Networks to overweight, setting a $380 price target. Analyst Eric Heath stated that the company is well-positioned to benefit from increased security budgets and consolidation trends through 2027. Meanwhile, Microsoft shares fell 3% in premarket trading due to a widespread outage affecting Outlook and Teams, though the company later reported early signs of service stabilization.
Luxury conglomerate Richemont saw its shares drop 6.8% despite reporting a 16% year-on-year sales increase to 12.3 billion euros. Investors reacted to a slowdown in growth compared to the previous quarter and a 3% decline in mainland China sales. Additionally, Bloomberg reported that Samsung Electronics is in talks to acquire U.S.-based thermal management firm Modine Manufacturing, causing Modine shares to jump over 29% in after-hours trading.
Economic Indicators and Global Markets
Wholesale inflation, as measured by the producer price index (PPI), rose 0.3% in October, coming in slightly below the 0.4% increase expected by economists. Despite the lighter-than-expected figure, the 10-year Treasury yield rose nearly 4 basis points to 5.14%. Traders are increasingly betting on a Federal Reserve rate hike, with the CME Group’s FedWatch tool pricing in a 100% probability of an increase at the December 9 meeting.
Bitcoin dropped below $70,000 for the first time since August, falling as low as $67,632.68. The decline coincides with a strengthening U.S. dollar, which reached its highest level since April 2025. Institutional selling and over $1 billion in leveraged liquidations have also pressured the cryptocurrency throughout November.
In Asia, markets closed mostly lower, with South Korea’s Kospi falling 0.98% and Hong Kong’s Hang Seng dropping 1.6%. Japan’s Nikkei 225 bucked the trend, gaining 0.53%. Japan’s Finance Minister Satsuki Katayama warned of potential action regarding the foreign exchange market after the yen crossed 160 against the dollar, noting “sharp, one-sided moves.”
