The Dow Jones Industrial Average fell 1.9% for the week. The S&P 500 declined 1.95%. The Nasdaq Composite dropped 2.7%.
The stock market sold off sharply over the past week. The decisive blow came on Thursday, when the major indexes initially surged on Nvidia’s earnings report but later reversed sharply lower.
Rate-cut optimism fuels broad rotation
Stock futures opened mixed, but comments from New York Fed President John Williams helped ignite a strong rally. He noted: “I still see the possibility of further adjustments to the federal funds rate in the near term to bring policy closer to neutral”, pushing the CME FedWatch probability of a 25-basis-point cut to nearly 75%, up from about 40% before his remarks. Boston Fed President Collins also supported a slightly restrictive stance, though her comments had less impact, leaving December rate-cut odds at 69.5% versus 39.1% yesterday.
Alphabet continued to show solid strength, trading higher even as other tech and mega-cap names struggled.
Healthcare was another bright spot, with several components hitting 52-week highs as investors rotated into the sector amid volatility across growth stocks.
Consumer discretionary was boosted by a combination of strong earnings and rising rate-cut expectations. Ross Stores (ROST) ended the session as the top gainer in the S&P 500, hitting a new all-time high after beating profit estimates and issuing upbeat guidance.
Homebuilders were among the biggest beneficiaries of today’s reinforced rate-cut expectations. Several stocks posted solid gains, including Lennar (LEN) +5.94%, DR Horton (DHI) +6.84%, Millrose Properties (MRP) +4.3%, and PulteGroup (PHM) +5.2%, helping the iShares U.S. Home Construction ETF rise 5.0%.
Rate-cut optimism also boosted the small-cap Russell 2000 (+2.8%) and the S&P Mid Cap 400 (+2.4%), both outperforming on the day.
Nvidia Stock
Nvidia (NVDA) shares were in focus after Bloomberg reported that the Trump administration is considering allowing sales of H200 GPUs to China, though discussions remain preliminary and no final decision has been made. Nvidia noted that current laws do not allow the company to sell GPUs to competitive data-center customers in China, leaving that market to foreign rivals, though the loss of market share in China does not affect its ability to serve U.S. customers.
The report comes as the U.S. continues to debate AI regulations and chip supply to rival nations. A bipartisan group of lawmakers recently proposed legislation that would bar CHIPS Act grant recipients from buying Chinese chip-making equipment for 10 years. In July, Nvidia received U.S. approval to sell a downgraded H20 GPU to China, but has reported no H20 revenue from the country over the past two quarters. China has recently banned the use of foreign AI chips in state data centers and instructed domestic firms to stop purchasing Nvidia GPUs.
NVDA shares fell 5.94% for the week to 178.88. The stock pared losses but still finished in negative territory on Friday.
Apple Stock (AAPL)
Apple has set a new record in its streaming segment. While Apple’s streaming business (via Apple TV) is small relative to total company revenue, it has the potential to turn profitable in the future and deliver high-margin revenue. The new series Pluribus has become Apple TV’s most-watched drama ever, breaking the record previously set by Severance. The show has attracted viewers in key markets including the U.S., U.K., Canada, Brazil, Australia, France, Mexico, and India. When the first two episodes premiered on November 7, the Apple TV app crashed due to high traffic — a sign of stronger-than-expected demand.
Apple is also preparing next steps in streaming: the film F1: The Movie will release on December 12, and Apple has secured U.S. broadcast rights for Formula 1 starting in 2026. Additionally, Apple is developing a free paywall model for MLS and MLB matches, potentially boosting ad revenue as the service expands into live sports broadcasting.
Apple shares fell 0.3% for the week to 271.49 but rose 2% on Friday. The stock is currently trading near the buy-entry price of 277.32.
Eli Lilly Joins the Trillion-Dollar Club
Eli Lilly (LLY) shares rose 1.57%, officially surpassing a $1 trillion market capitalization, becoming the 10th U.S. company to reach this milestone, driven by strong demand for its GLP-1 drug portfolio.
Novo Nordisk (NVO) and Eli Lilly (LLY) will begin selling weight-loss drugs Wegovy and Zepbound directly to employers starting January 1 through Waltz Health. Under the new model, employers pay a fixed upfront price with no discounts or intermediary fees, lowering drug costs. Waltz stated this will be the most cost-effective way for employees to access weight-loss medication, and many companies have already signed up. The model targets businesses that currently do not cover weight-loss drugs — only about 43% of large companies currently offer insurance for these medications.
This move represents the next step for LLY and NVO in expanding GLP-1 access, following the launch of direct-to-consumer channels like Lilly Direct and Novo Pharmacy.
