U.S. stocks closed mixed on Friday as a renewed sell-off in chip stocks dragged the Nasdaq lower, while the Dow eked out a small gain.
The Dow Jones Industrial Average rose 50.46 points, or 0.1 percent, to 52,347.55. The S and P 500 lost 30.73 points, or 0.4 percent, to 7,561.67. The Nasdaq Composite Index dropped 229.82 points, or 0.91 percent, to 25,136.27.
Six of the 11 primary S and P 500 sectors ended in the green, with consumer staples and energy leading the gainers by adding 1.39 percent and 0.96 percent, respectively. Technology and consumer discretionary led the laggards, falling 1.7 percent and 0.45 percent, respectively.
U.S. Treasury yields stayed near multiyear highs, with the benchmark 10-year yield at about 5.14 percent. Traders were pricing in an almost 87-percent chance of a quarter-point rate hike at the Federal Reserve's December meeting, according to CME FedWatch.
Oil prices were little changed, with West Texas Intermediate settling at 88.56 U.S. dollars a barrel, down 0.2 percent, while Brent crude settled at 95.84 dollars a barrel, up 2 cents. Both benchmarks fell about 2.5 percent for the week, their second weekly decline, as the International Energy Agency said the global oil market was returning to a surplus for the first time since the US-Israeli war against Iran.
On the corporate front, Nvidia fell roughly 2 percent, its second day of losses after CEO Jensen Huang resigned on Thursday. HSBC downgraded the stock to hold and cut its price target to 170 dollars from 360 dollars. Advanced Micro Devices plunged 8.75 percent to 534.06 dollars per share, giving back Thursday's gain. The shares of Broadcom, Dell and CoreWeave all saw material losses as the selling spread across artificial intelligence names.
Cisco Systems fell 6.24 percent to 95.64 dollars despite reporting record quarterly revenue of 18.5 billion dollars, as its gross margin slipped and its outlook disappointed. Modine Manufacturing jumped 27.86 percent to 135.66 dollars on a report that Samsung Electronics is in talks to buy the data center cooling maker, while Cerebras Systems rose 11.22 percent to 108.72 dollars after posting record revenue and raising its outlook.
Nvidia will report its quarterly results next Tuesday, and Anthropic is set to make its public market debut next week.
On the economic front, the producer price index for final demand rose 0.3 percent in October, seasonally adjusted, the Bureau of Labor Statistics reported on Friday. This followed an upwardly revised 1.4-percent surge in September and a 0.4-percent rise in August. Economists polled by Reuters had expected a 0.4-percent increase. On an unadjusted basis, the index climbed 6.5 percent from a year earlier, the largest 12-month gain since November 2022, after advancing 6.3 percent in September.
U.S. stocks close mixed as chip sell-off deepens
