Markets end the week in the red as Broadcom and Oracle concerns drag the entire AI trade down
The S&P 500, Nasdaq 100, and Russell 2000 were all negative on Friday.
The markets ended Friday down, as negative sentiment following Broadcom’s earnings combined with a Bloomberg report saying Oracle is delaying some data centers for OpenAI to 2028 from 2027 weighed on everything connected to the AI trade, from data center trades like Sandisk and Western Digital to AI REITs like Equinix and Digital Realty as well as other AI-geared stocks like Constellation Energy, Arista Networks, and Corning.
Oracle’s subsequent denial of the report pared some of its losses but did little to reverse the trend, and while Nvidia had gotten a boost premarket from a report it was considering boosting H200 production, it lost all those gains and finished lower. AMD also suffered from the AI worries, as it had previously signed a substantial deal with Oracle to supply 50,000 chips for its data centers.
All three major US stock indexes were negative on Friday. Tech was the worst-performing sector ETF by far and sank the Nasdaq 100 nearly 2%. The S&P 500, which just notched a closing all-time high, gave up all those gains and more to end down for the week.
Stocks that moved higher:
Cannabis stocks including Tilray, Canopy Growth, and SNDL Inc. soared on the reports that the Trump administration is close to reclassifying marijuana.
Planet Labs rose after aerospace and defense analysts at Citi initiated coverage with a “buy/high risk” rating and $19 price target.
Lululemon soared after posting better-than-expected Q3 results after the bell yesterday, with an upbeat full-year outlook and announcement that its CEO will depart in January.
After a good night’s rest, investors decided they liked Rivian’s AI Day event after all, sending the stock surging.
Stocks that moved lower:
Shares of kid-focused gaming platform Roblox fell after JPMorgan downgraded its rating to “neutral” from “overweight,” saying hits like “Steal a Brainrot” are past their peak.
Fermi dropped after it disclosed that the first tenant for its planned Project Matador power grid site has terminated its $150 million contract.
