Stocks Climb as Buyers Step In Despite Nvidia Woes: Markets Wrap
A renewed wave of dip buying drove stocks to their best day since April in the wake of a technology selloff that had roiled Wall Street, with the market also gaining as oil prices tumbled.
Following a drawdown in one of the world’s most-crowded trades, a gauge of chipmakers jumped 6.9%. The S&P 500 rose 2.3%. The Nasdaq 100 added 3.4%. That’s despite a 4.3% slump in Nvidia Corp. amid an investigation into Chief Executive Officer Jensen Huang after his admission of an affair with a woman identified in a series of reports as a suspected Chinese spy.
“For now, the market is showing the resilience needed to turn last week’s weakness into another buying opportunity,” said Mark Hackett at Nationwide. “That’s an encouraging sign.”
Also helping sentiment was a drop in energy costs on optimism around efforts to end the Iran war. President Donald Trump struck a more conciliatory tone, saying it’s “highly unlikely” he will order extensive strikes on the Islamic Republic.
That helped reduce anxiety about inflation ahead of a report on consumer prices — the last before the Federal Reserve meeting in December. Still, 10-year Treasuries fell amid gains in riskier assets.
S&P 500 Has Best Day Since April
Source: Bloomberg
“We continue to see economic conditions as supportive of corporate fundamentals,” said Brock Weimer at Edward Jones. “Thus, we recommend that investors maintain an overweight allocation to equities relative to fixed income.”
The sharp deterioration in momentum that played out in equities last week may have pushed investor pessimism close to peak levels, according to JPMorgan Chase & Co. strategists led by Dubravko Lakos-Bujas.
The recent tech selloff represented a reset rather than the start of a structural downturn in the AI investment cycle. But the rebound does not remove the risks created by concentrated positioning and elevated expectations, said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.
While it’s unlikely last week shut the door on volatility, what unfolded may have been more about investors repositioning within the AI trade rather than abandoning it altogether, noted Chris Larkin at E*Trade from Morgan Stanley.
“There’s good reason to believe the stock market’s long-term rally is intact, especially given that the selloff overshadowed another week of strong economic data,” he added.
Corporate Highlights:
- Anthropic PBC has unveiled new versions of its powerful Mythos and Fable AI models, an effort to bolster the company’s position as a leader in AI development on the eve of its long-awaited Wall Street debut.
- The company can begin formally marketing its IPO as early as Tuesday.
- Alphabet Inc.’s Google is rolling out a broader array of AI chips, aiming to capitalize on its rapid ascent as a challenger to Nvidia in a market worth hundreds of billions of dollars.
- SpaceX plans to construct, own and operate a gas-fired power plant and super-compute facility at its company town in Starbase, Texas, according to a notice of a public hearing on the city’s website.
- Tesla Inc. will refund Cybertruck deposits for some customers because it has more orders than it can process before ending production of the divisive pickup next year, according to Chief Executive Officer Elon Musk.
- Advanced Micro Devices Inc. was upgraded to outperform at Oppenheimer, a move that comes in the wake of “another bullish earnings call.”
- Boeing Co. will cut 5% of its commercial airplane workforce after delaying production increases, the US planemaker’s first job reduction in nearly two years and a sign that its turnaround is far from complete.
Google’s chip business is on a faster track than Nvidia’s own AI boom
Nvidia (NVDA) is investigating its own CEO. Google is busy building the chips that could take its customers.
Nvidia fell more than 4% Monday to its lowest close since April 7, as its board looks into CEO Jensen Huang’s relationship with an alleged Chinese spy. That came even as chip stocks rallied, with the iShares Semiconductor ETF (SOXX) up more than 7%. Alphabet (GOOGL) rose about 1%. It’s the latest chapter in Wall Street’s first $4.5 trillion CEO scandal.
Google introduced two new tensor processing units, or TPUs — its homegrown AI chips — on Monday. The TPU 8tx and TPU 8i Max join the 8t and 8i it unveiled in April, the first time Google has introduced four TPU systems in a single year. Both new chips ship next year.
Think of it as a chip menu. The 8tx keeps data encrypted for governments, banks, and other regulated businesses, paired with processors from AMD (AMD). The 8i Max squeezes two chips into one package for requests with long context windows — the amount of information an AI model can juggle at once.
The forecasts are the eye-popper. Bloomberg Intelligence sees TPU sales rising from about $12 billion this year to more than $135 billion by 2028, not counting chips rented through Google Cloud. That’s more than 11-fold in two years.
Nvidia’s data center business grew nearly eightfold in the first two years of the AI boom, from $15 billion in fiscal 2023 to $115 billion in fiscal 2025.
Nvidia, Bloomberg Intelligence, Yahoo Finance
The chips are already flying off the line. Epoch AI estimates TPU shipments doubled in computing power in a single quarter this year, to roughly 800,000 chips.
Anthropic is the headliner. Its IPO filing shows about $161 billion of lease payments tied to TPUs, which Raymond James says makes it the biggest custom-chip customer of Google’s design partner, Broadcom (AVGO). Meta (META), OpenAI and Oracle (ORCL) are buyers too.
Google used to roll out about one data center TPU a year. Now it has one for every job.
Google, Yahoo Finance
Nvidia still has the bigger engine.
Its next-generation Rubin chip is rated at 35 petaflops — a measure of raw computing speed — compared with about 10 for Google’s 8i and about 20 for the 8i Max, according to Yahoo Finance calculations.
Google is selling on price. SemiAnalysis found that Google’s current Ironwood TPU delivers up to nearly three times as much AI output per dollar as Nvidia’s Blackwell chips when running AI agents, though Nvidia’s top system still wins when speed is everything.
There will always be volatility in ground breaking technology! AI is still in its infancy and there will continue to be changes as the technology moves forward.
The market had a rough week last week. We adjusted a few positions as a result.
We took profits on NVDA 260 short Calls. We sold for $24.69 and bought back for $2.80. (88.65% gain.) Still holding long calls.
We closed the MU 900/1000 Bull call Spreads. With intent to re-establish at lower strikes and similar costs.
We took profits on the NKE 65 short Calls. We sold for $2.00 and bought back for $0.49. (75.50% gain)
We rolled down and out on WMT Collars from the Dec 115/135 to the March 125/145 for a debit of $5.95. We’re profitable on the stock.
We closed and got what we could out of KEY puts as the stock continues to hold up.
Earnings –
DJIA – Crossing 50-day is bullish. Christmas rally still in play.
SPX – Bounce off of 200-day & Support is Bullish.
COMP – Bounce off of support and crossing 200-day MA is Bullish.
October SPX finished down -1.95%
Where Will the SPX end November 2026?
11/06/26 SPX Down -2.69%
11/13/26 SPX likely to finish higher this week.
There is a 2/3rds chance that the market will finish between $7919.44 and $7180.44
My guess is that SPX will finish November above $7800.00
Econ Reports:
Mon: Michelle Bowman Speaks, Austan Goolsbee Speaks, Wholesale Inventories (preliminary), Thomas Barkin Speaks
Tue: Christopher Waller Speaks, NFIB Small Business Optimism Index, CPI, Lorie Logan Speaks, Jefferey Schmid Speaks, Michelle Bowman Speaks twice, Anna Paulson Speaks
Wed: Veteran’s Day
Thur: MBA Mortgage Applications, Jobless Claims, Beth Hammack Speaks, Existing Home Sales, Michael Barr Speaks, Austan Goolsbee Speaks, EIA Petroleum Status, Mary Daly Speaks, Jeffrey Schmid Speaks, John Williams Speaks, Fed Balance Sheet
Fri: PPI Final Demand, Susan Collins Speaks twice, EIA Natural Gas Report, Michelle Bowman Speaks, Mary Daly Speaks, Phillip Jefferson Speaks
How am I looking to trade?
Looking to take profits on bearish positions and remove ceilings on bullish trades.
www.myhurleyinvestment.com = Blogsite
info@hurleyinvestments.com = Email
Questions???
