A notable shift occurred within the technology sector on the final trading day of the week. While the broader tech index posted solid gains, a closer examination of individual components revealed a striking divergence: Intel catapulted to the top with a surge exceeding ten percent, while the market’s beloved AI champion, Nvidia, found itself under continued pressure. This movement raises the question of whether a fundamental sector rotation is underway, potentially moving capital away from overheated artificial intelligence bets and toward undervalued opportunities.
Nvidia and Oracle Face Selling Pressure
On the opposing side, Nvidia, the standard-bearer for the AI revolution, extended its recent decline. The stock fell a further 1.8 percent, bringing its total loss for November to a double-digit percentage. Fund managers appear to be using the month’s end to capture profits and realign their portfolios.
Oracle also found itself declining, shedding nearly two percent. The negative sentiment was fueled by mounting concerns over the company’s substantial capital expenditures for building out its AI infrastructure, coupled with potential credit warnings from rating agencies.
Intel Stuns Market with Spectacular Rally
The undisputed star of Friday’s session was Intel. The chipmaking veteran led the NASDAQ 100’s advancers with a spectacular leap of over ten percent. The catalyst was an analyst report suggesting the long-beleaguered company could be in line for a multi-billion dollar order from Apple for its foundry division. This news triggered a massive short-covering rally, catching numerous short sellers off guard and forcing them to hastily cover their positions.
The positive sentiment spilled over to other semiconductor names. Marvell Technology gained nearly two percent, while SanDisk, following its recent spinoff and inclusion in the S&P 500 index, jumped almost five percent. The rotation within the chip sector is becoming increasingly pronounced.
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NASDAQ 100 Closes Week Strong Despite Monthly Dip
The NASDAQ 100 concluded Friday’s trading at 25,434.89 points, finishing near its session peak with a solid 0.78 percent advance. This performance provided the index with a conciliatory end to the week after a period of volatile sessions. However, this late-week recovery was not enough to prevent the index from recording a loss of approximately 1.6 percent for November, marking its first monthly decline after seven consecutive months of gains.
Trading volume was predictably thin, with around 206 million shares changing hands, as many investors extended their Thanksgiving break. The CBOE Volatility Index (VIX) declined by 0.86 percent to 16.35, signaling a reduction in near-term risk apprehension.
The Week Ahead: Key Tests for Market Sentiment
From a technical perspective, the index successfully defended a key support level at 25,280 points on Friday. A decisive breakout above the 25,500-point mark is now viewed as necessary to reclaim the 20-day moving average and restore upward momentum.
The coming week promises to be eventful. Market participants will focus on Cyber Monday sales figures and the ISM Manufacturing Purchasing Managers’ Index. Furthermore, markets are now pricing in an 85 percent probability of a Federal Reserve interest rate cut in December, a potential tailwind for growth-oriented tech stocks. Whether the rotation from overvalued AI names to value-oriented positions like Intel persists will be revealed in the upcoming trading sessions.
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