Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Friday's key moments. 1. Stocks dropped for a second straight session on Friday. The tech-heavy Nasdaq led the way lower, with a decline of more than 1%. Jim Cramer said that higher bond yields are the reason why many stocks are lower. "The commonality, the threat is rates," he said, following the highest yearly producer price index reading in nearly four years. This comes after Tuesday's hotter consumer inflation report. According to the CME FedWatch tool, the market favors a quarter-point rate hike next month and in January and maybe March. The Federal Reserve increased rates for the first time in three years in September. 2. Nvidia shares fell another 3% on Friday, one day after Jensen Huang resigned as CEO amid an affair scandal. "There's been no bid for [Nvidia stock]," Jim said, pointing to the lack of buyers out there. "I want everyone to know that this one's going down, he predicted. "We've been frozen." Jim…
The common theme driving stocks lower — plus, 3 trades and another we want to make
In short
The tech-heavy Nasdaq declined by more than 1% as the broader market logged its second straight day of losses. Pressure stemmed from persistent inflation worries alongside expectations that the Federal Reserve could execute rate hikes across multiple consecutive meetings. Individual equities saw sharp divergences, with Nvidia extending its weekly slide following an executive departure while other tech names presented fresh buying targets. Portfolio managers actively shifted funds out of retail holdings to shore up allocations in consumer goods.
Key points
- Accelerating consumer and producer price inflation metrics are continuing to drive bond y…: Accelerating consumer and producer price inflation metrics are continuing to drive bond yields higher and depress tech valuations.
- Advanced Micro Devices emerged as an attractive buying target to replace a troubled posit…: Advanced Micro Devices emerged as an attractive buying target to replace a troubled position held in Intel.
- Portfolio managers are reducing exposure to retail risks ahead of earnings in favor of mo…: Portfolio managers are reducing exposure to retail risks ahead of earnings in favor of more stable consumer product makers.