US stocks weekly: Blast radius

Microsoft

Yesterday 21:56

** S&P 500 .SPX snaps four-week losing streak, rises 2.5% even as Nvidia upheaval sends shockwaves across the AI industry .N
** Dow .DJI up 2.1%, tech-heavy Nasdaq Composite .IXIC ascends 2.3%
** Bargain hunters step in as S&P 500 bulls defend the trend
** Nasdaq finds a floor, but now comes the hard part
** US 10-year Treasury yield US10YT=RR breaks five straight weeks of declines, jumps to around 5.14% after hot inflation data and hawkish Federal Reserve commentary US/
** Every sector ignites as Energy fires on all cylinders 
** Energy .SPNY surges 5.1%. Group follows oil prices higher on uncertainty in talks to end war in Iran, and Trump comments raise doubts on deal O/R
** Tech .SPLRCT thrusts 2%. Nvidia NVDA.O drops on Mon as board probes CEO Jensen Huang over spy claims, then plunges on Thurs after he steps down after revelations of two extramarital affairs, sending AI-linked stocks lower
On Weds, CoreWeave's CRWV.O results, outlook soothe investor angst around the AI trade, though on Fri, AI stocks resume slide as markets weigh potential ripple effects of Huang's departure
Among beneficiaries of the fallout, AMD AMD.O, Broadcom AVGO.O climb as Nvidia turmoil creates opportunity. AMD and AVGO pop ~19% and ~18%, respectively, on week
Semiconductor index .SOX adds 8.1%. Chip sector rebound faces test as Nvidia tumbles
Microsoft MSFT.O shares waver as co grapples with hours-long Outlook, Teams and Copilot outage
Materials .SPLRCM edges up 0.3%. Record skid leaves copper miners COPX.K at a crossroads. COPX down 12 weeks in a row
** Meanwhile, AAII investors trim stocks, boost bonds in Oct, and more recently, bears tighten their grip
** SPX performance YTD:
     
Energy
45.0%
Healthcare
21.8%
Staples
20.2%
Materials
14.4%
Tech
13.1%
Real Estate
10.9%
SPX
10.5%
Industrials
8.7%
Financials
6.9%
Utils
2.9%
Discretionary
2.6%
Comm Svcs
-6.7%
     

(Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)
((lance.tupper@tr.com ; terence.gabriel@tr.com))