Friday’s trading will end the trading week with the government posting October’s job report. This has the potential to move stocks further. In the last week, the small-cap index, the iShares Russell 2000 ETF (IWM), lost 0.89%. IWM stock indicated a bearish “multiple top” at $225.
Markets continue to pressure the U.S. government's debt prices. The 30-year Treasury Bond (TLT) yield rose for the last two months. Debt markets are expecting demand for the U.S. Treasury to fall. To hedge against the U.S. dollar, investors bought Bitcoin (BTC-USD) and gold.
Investors may hold gold stocks like Newmont Mining (NEM) and Kinross Gold (KGC).
The rising bond yields hurt technology stock valuations. Microsoft (MSFT) lost 6.05% yesterday. Revenue growth for Azure grew by around 31%. This is down from the 34% rate reported in Microsoft’s first quarter.
Meta Platforms (META) will try to bounce back today, after falling by 4.09% on Thursday. The firm is spending heavily on AI, despite this technology not proving to pay off.
In the chip sector, watch for AMD stock to rebound. Shares fell from $167 on Oct. 29 to $144. The firm must take advantage of Nvidia (NVDA) potentially stumbling in its Blackwell B200 Server AI release. Still, any limited supply for B200 would only lift Nvidia’s margins.
Customers would rather wait to buy Nvidia’s superior product than settle for AMD’s AI server.
