4:10pm: Tech stocks stage recovery
US stocks clawed back from earlier losses on Friday, with investors shrugging off Thursday’s steep sell-off and looking ahead to fresh economic data before the Federal Reserve’s December rate decision.
The Dow Jones fell 310 points, or 0.7%, to 47,147, while the S&P 500 slipped just 3 points, finishing essentially flat at 6,734. The Nasdaq nudged up 30 points, or 0.1%, to 22,901, and the Russell 2000 gained 6 points, or 0.3%, to 2,389.
Tech shares led the afternoon rebound after early AI-related fears triggered a flight from riskier assets, as investors rotated into more measured sectors.
Overall, the mood remains cautious, with the market digesting signals that the Fed may slow its pace of easing. Traders now assign less than a 50% chance of a quarter-point rate cut next month, down sharply from roughly 95% a month ago.
3:15pm: BofA: Buy Nvidia
Bank of America reiterated its Buy rating and $275 price objective on Nvidia ahead of Nov. 19 earnings, calling the stock attractively valued at 27x/21x CY26/27 earnings despite growing macro worries. The bank said debate has shifted to hyperscaler capex uncertainty, supply constraints and rising competition, even after Nvidia disclosed about $500 billion in Blackwell/Rubin orders for 2025–26.
BofA sees Nvidia’s recent pullback as a contrarian positive and expects management to reassure investors on demand and supply. With a strong pipeline across Blackwell, Blackwell Ultra and Vera Rubin, the bank said Nvidia’s full-stack AI leadership and valuation keep its Buy case intact.
2:25pm: Market movers
- Topgolf Callaway Brands (MODG) is in talks to sell its Topgolf unit to private-equity firm Leonard Green in a deal that could value the business at about $1 billion.
- Walmart (WMT) shares slipped after the company announced CEO Doug McMillon will retire in early 2026 and be succeeded by Walmart US chief John Furner.
- Merck (MRK) agreed to buy Cidara Therapeutics in a $9.2 billion cash deal, offering $221.50 per share—more than double Cidara’s prior stock price.
- StubHub shares tumbled over 23% after the company missed Q3 expectations and withheld Q4 guidance despite reporting stronger-than-expected revenue.
1:45pm: Not the end for bulls
Big tech names such as Alphabet, Nvidia and Tesla led the retreat, but decliners outpaced gainers nearly 3-to-1 across the index.
LPL Financial said derisking hit mega caps, retail favorites, bitcoin-linked stocks, profitless tech and other high-momentum names. Hawkish comments from Federal Reserve officials pushed Treasury yields higher and reduced odds of a December rate cut and Fed funds futures now price roughly a 50% chance of a 25 bp cut, down from 66% last week.
Technically, the S&P 500 has slipped below its 20-day moving average while maintaining its upward channel. Analysts are watching support at the 50-day moving average near 6,700 and the November lows at 6,631; a break below those levels could open the door to a deeper pullback toward October or even August lows.
Breadth and momentum are weakening, with the RSI showing signs of buyer fatigue and defensive sectors beginning to gain relative strength, the first notable hint of risk aversion in about six months.
LPL’s bottom line: a break below November lows would raise the risk of a larger pullback, but it would not signal the end of the bull market.
12:50pm: Nasdaq comes back
The Nasdaq is leading the markets into the green this afternoon.
Just after Friday's halfway point of trading, the tech-heavy index rallied ahead 0.6%.
That enthusiasm was echoed in the S&P 500, which was up 0.3%.
The Dow is still lagging but not as deeply as the morning session. Heading into the afternoon the index was about 0.4% in the red
12:10pm: Tech selloff or buying op?
Wedbush analysts on Friday commented on yesterday’s selloff in tech stocks, which were under pressure by factors such as "AI Bubble" talk along with worries about Nvidia China revenues being shut off.
“In a nutshell, we view this as a short lived mini panic moment for tech stocks as we believe tech stocks will have a major rally into the rest of the year as investors look to play the AI Revolution and the 2nd/3rd/4th derivatives now playing out across consumer and enterprise names,” the analysts wrote in a note to clients.
They believe the current tech capital expenditure Supercycle, boosted by AI, is driving trillions of spending over the next few years, which the analysts expect will keep the tech bull market alive for at least another two years.
11:25am: Markets on edge
The longest US government shutdown in history ended this week after 43 days, with Congress passing a stopgap funding bill through January 30.
Federal agencies are reopening, but key economic reports, including October’s consumer price index and jobs data, remain delayed, leaving investors uncertain about the Federal Reserve’s next policy move.
Fedspeak turned more hawkish, signaling that controlling inflation remains a priority even at the expense of slower growth. Traders now see roughly a 50-50 chance of a 25-basis-point rate cut in December.
“Persistent inflation and delayed economic data mean the Fed’s next move is harder to predict, keeping markets on edge,” Jefferies analysts said in a note.
Major US stock indices are tracking weekly declines, with the S&P 500 poised for its first two-week losing streak since June. Gold has held near $4,000 an ounce, retreating slightly from a three-week high amid the broad market sell-off.
With the Fear & Greed Index signaling extreme fear, Jefferies analysts say volatility is likely to continue until fresh economic data becomes available.
10:45am: Inflation spreading
Some Fed speak to kick off the morning:
Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, warned that inflation is spreading to a broader range of goods and services, noting that persistent price pressures could shift the psychology of price-setting.
In his remarks this morning, Schmid added that further interest rate cuts might have lasting effects on inflation, saying concerns about rising prices are guiding his thinking ahead of the December FOMC meeting.
9:50am: Tech in retreat
Wall Street stumbled out of the gate at the open, with tech stocks taking the biggest hits and the Fed keeping traders on edge.
The Dow took the biggest hit, slipping 512 points, or 1.1%, to 46,945. The S&P 500 fell 37 points, or 0.6%, to 6,700, while the Nasdaq dropped 105 points, or 0.5%, to 22,766. The Russell 2000 dipped 22 points, or 0.9%, to 2,361.
Tech was once again in the spotlight for all the wrong reasons. Tesla dipped 3% to break below $400 after its worst day since July, while Nvidia slid 2.6% following Thursday’s 3.6% tumble. Semiconductor supplier Applied Materials also slipped despite forecasting higher sales next year on booming AI demand.
Cryptocurrency wasn’t spared either. Bitcoin fell below $96,000 for the first time in more than six months, down more than 20% from its October peak.
Investors are growing increasingly cautious as worries mount that the Fed could slow the pace of policy easing. Bank of America notes that upcoming economic data could be delayed or distorted by the recent government shutdown, with October and November reports possibly arriving after the Fed’s December 10 meeting. Fed Chair Powell has hinted that the central bank could hold rates steady in that scenario.
Outside of tech, merger chatter is heating up. Paramount (PSKY), Comcast (CMCSA), and Netflix (NFLX) are reportedly preparing bids for Warner Bros. Discovery (WBD), according to the Wall Street Journal. Meanwhile, famed investor David Tepper continues to bet big on China while also building a position in US appliance maker Whirlpool (WHR).
Not all earnings are making investors happy. StubHub (STUB) shares plunged after the ticketing company’s first report offered no guidance for the current quarter.
Looking ahead, the market has a busy week in store. September jobs data, FOMC minutes, existing home sales, PMIs, and Michigan sentiment are all due next week. Traders will also be watching Fed speakers Williams, Kashkari, Hammack, Goolsbee, Paulson, and Logan for hints on policy direction.
8am: Nasdaq set to fall for fourth day
US markets are expected to extend their losses when trading gets under on Friday, with the Nasdaq bearing the brunt of the negative sentiment.
With an hour and a half to go before the markets open, Nasdaq futures are 1.5% lower, with those for the S&P 500 and the Dow Jones down 1% and 0.6% respectively.
Tech stocks led Wall Street lower amid concerns about AI valuations and that the Fed may hold off cutting rates in December in the wake of the US government shutdown. The Nasdaq fell 2.3%, and the Dow Jones and the S&P 500 both declined 1.7%.
Investors have begun to question whether the year’s big drivers — AI enthusiasm and hopes for rate cuts — have gone too far, according to interactive investors' Richard Hunter.
“US stocks endured a bruising session with emerging signs that the investor narrative is changing, as opposed to any clear deterioration in fundamentals,” Hunter said.
Adding to the market pressure is the growing realisation that a full set of jobs and inflation data won’t land before the Federal Reserve’s December meeting, commented Swissquote senior analyst Ipek Ozkardeskaya.
"If that’s the case — and if the Fed retains even a minimum degree of independence and reason — it wouldn’t cut rates blindly," she added.
The negative sentiment has fed through to European and Asian markets.
The FTSE 100 had shed 2% by noon in London, while Frankfurt's DAX shed 1.6% and the Paris CAC 40 was 1.5% lower.
In Tokyo, the Nikkei ended 1.8% down, Shanghai's closed 1% in the red and Hong Kong's Hang Seng shed 1.9%. Mumbai's BSE Sensex bucked the negative trend, with a 0.1% gain, while the ASX 200 in Sydney ended 1.4% weaker.