Hi friends! 👋
Grab a coffee. Maybe a bigger cup. It was another wild week. Here’s what’s on my radar.
A Bull Market With a Bear Inside
Is Nvidia a Buy, Sell or Hold?
Surprising Stocks Down From Their Highs
Is the Market Now Cheap?
What’s Coming Down the Pipeline
Let’s get into it.
Eric
Market Recap
What a difference a week makes.
Last week was the S&P’s worst week since April 2025. This week was the best week for the Dow, S&P and Nasdaq since August 7th. The S&P and Nasdaq both snapped four-week losing streaks.
It was broad, too. All 11 sectors finished higher.
Monday did most of the work. The S&P jumped 2.3% that day alone, its best day since April. The rest of the week was a grind.
What stood out to me is that stocks rallied even as the 10-year yield climbed to 5.15%. The hot inflation data pushed yields up, and the market shrugged it off.
Not everything had a good week. Bitcoin dropped 10% and is now down 23% on the year. Gold fell almost 5%.
Here’s how everything finished.
Weekly Heat Map of Stocks
Sentiment Check
Another uptick in bearishness.
Best Performing S&P 500 Stocks YTD
Worst Performing S&P 500 Stocks YTD
A Bull Market With a Bear Inside
Here’s the strange part. Since the midterms, the S&P 500 is basically flat. After a 4% crash day, a hot inflation print and a CEO resignation. Bet you didn’t know that.
On the surface, everything looks fine. The AI trade bounced back this week. The data center backlash and blue wave worries have faded. This is still a bull market.
But look under the hood and it’s a different market. Cullen Roche put it best on Friday.
This is one of the most interesting market downturns I can ever remember. The S&P is down 3.6%. Equal weight is down 1.2%. The median stock is down 11.7%. Semis are down 31%. 32% of stocks are in a 20%+ correction. There is some major pain in certain areas in what is otherwise a sideways market for the index.
And now the company at the center of it all just lost its leader.
Jensen Huang ran Nvidia for 33 years. Nvidia’s chips made the AI buildout possible, and Jensen became Wall Street’s Godfather of AI. Now he’s resigned over the scandal, and CFO Colette Kress is interim CEO.
Nvidia reports Tuesday. Anthropic begins trading Thursday. And I think the Fed hikes in December.
So the real question is simple. Does the AI money keep flowing?