Wall Street fell Friday as traders unwound this week's rush out of Nvidia Corp. (NASDAQ:NVDA) and into rival chipmakers, sending Advanced Micro Devices Inc. (NASDAQ:AMD) down 10.5% and wiping out about $100 billion of its market value by midday. Stocks opened higher after a cooler-than-expected wholesale inflation report, then reversed as the scandal around Jensen Huang's exit from Nvidia deepened.
A new report said 22 servers built by Dell Technologies Inc. (NYSE:DELL) and packed with restricted Nvidia H800 chips were sold to Singapore-based Aperia Cloud Services, then installed at a Shanghai data center tied to a company founded by Alice Huang. Treasury Secretary Scott Bessent said Treasury had favored blacklisting Nvidia partner Megaspeed.
"The real story here should be, did Nvidia know their client," Bessent told CNBC on Friday.
AMD traded at $524.11, on track for its worst session since Nov. 5. The stock had rallied nearly 45% over the previous five sessions, and Friday's drop erased about a third of that gain.
The S&P 500 fell 0.7% to 7,536, down 57 points.
The Dow Jones Industrial Average slipped 48 points, or 0.1%, to 52,249. Cisco Systems Inc. (NASDAQ:CSCO) led blue-chip decliners with a 6.4% drop, erasing about $26 billion of its market value, as a 250-basis-point squeeze in adjusted gross margin overshadowed record first-quarter revenue and a higher fiscal 2027 outlook.
The Nasdaq 100 dropped 488 points, or 1.7%, to 27,801. Within the Magnificent Seven, Nvidia fell 3.3% to $160.69 ahead of Tuesday's results, its first report without Huang. The Russell 2000 lost 0.7% to 2,780, while the CBOE Volatility Index jumped 6% to 19.83.
The Treasury curve steepened.
The 10-year Treasury yield rose 3 basis points to 5.14%, and the 30-year yield climbed 4 basis points to 5.47%. The 2-year yield eased 1 basis point to 4.85%.
Gold was little changed at $3,885 an ounce, while silver fell 2.1% to $49.02. Bitcoin (CRYPTO: BTC) slid 3.4% to $68,984, below $70,000. West Texas Intermediate crude edged down 0.2% to $88.54 a barrel, and Brent was flat at $95.82.
On the data front, the producer price index for final demand rose 0.3% in October, below the 0.4% forecast and down from 1.4% in September. Annual producer inflation reached 6.5%, the highest since November 2022.
