Stock Market Today: Dow and S&P 500 Rise as Inflation Cools
U.S. stocks edged higher on Friday, November 13, as a softer-than-expected wholesale inflation report helped Wall Street recover from Thursday's losses. The Dow Jones Industrial Average and S&P 500 each gained approximately 0.4% in early afternoon trading, while the Nasdaq Composite advanced 0.1%. The modest gains reflected relief over easing monthly producer price pressures, although continued volatility in technology stocks limited the broader market's advance.
The session followed Thursday's declines, when all three major indexes fell approximately 0.4% as Nvidia's leadership shakeup and elevated Treasury yields weighed on investor sentiment. Friday's trading featured sharply contrasting corporate earnings reactions, with Cerebras Systems and Modine Manufacturing posting substantial gains while other technology companies struggled. Investors also remained cautious about the Federal Reserve's December interest rate decision after inflation data presented a mixed picture of underlying price pressures.
Market Movers:
- Modine Manufacturing (MOD) +31%: Shares surged in premarket trading after Bloomberg reported that Samsung Electronics was in discussions to acquire the data center cooling equipment manufacturer. The potential transaction attracted investor attention as Modine continues benefiting from strong demand for AI infrastructure and advanced cooling systems.
- Cerebras Systems (CBRS) +17.7%: Shares rallied in premarket trading after the AI chipmaker reported record third-quarter revenue of $210.8 million and raised its full-year outlook. The company also announced new cloud customer agreements, reinforcing expectations for continued demand for alternatives to Nvidia's AI computing technology.
- Fluent (FLNT) +20%: Shares jumped in premarket trading after the digital marketing company reported quarterly revenue of $53.6 million, exceeding analysts' expectations. Its Commerce Media Solutions business doubled revenue from a year earlier, helping narrow the company's net loss.
- Newsmax (NMAX) +14.6%: Shares advanced in premarket trading after the media company reported quarterly net income of $15.2 million, reversing a loss in the year-earlier period. Revenue growth and stronger advertising performance helped the company exceed earnings expectations.
- Nu Holdings (NU) +3.1%: Shares rose in premarket trading after the Latin American digital bank reported record quarterly earnings and continued customer growth. Investors welcomed its improving profitability and operating efficiency despite mixed results relative to analysts' estimates.
- Cisco Systems (CSCO) -2%: Shares declined in premarket trading despite the networking equipment maker reporting stronger-than-expected quarterly revenue and earnings. Investors focused on narrowing gross margins as the company expands sales of AI networking hardware and faces higher component costs.
Wholesale Inflation Eases, but Price Pressures Remain Elevated
October's Producer Price Index increased 0.3% from September, below economists' expectations for a 0.4% rise, according to the Bureau of Labor Statistics. Core producer prices, excluding food and energy, also increased 0.3%, matching forecasts. The softer monthly reading offered some reassurance after Tuesday's consumer inflation report exceeded expectations and renewed concerns about additional monetary tightening.
However, producer prices were still 6.5% higher than a year earlier, marking their fastest annual increase since 2022. The elevated reading suggests businesses continue facing substantial cost pressures that could eventually be passed along to consumers. With inflation remaining persistent, investors are increasingly focused on whether the Federal Reserve will raise interest rates at its December meeting.
AI Stocks Diverge as Nvidia Leadership Changes Remain in Focus
Cerebras emerged as one of Friday's strongest AI-related performers after reporting accelerating cloud revenue and raising its annual forecast. The company also disclosed agreements with major cloud customers, providing evidence that demand for advanced AI computing remains strong beyond established industry leaders. Applied Materials added to the positive earnings picture after reporting stronger-than-expected quarterly results, supported by semiconductor manufacturing investment.
Nvidia, meanwhile, remained under scrutiny following Jensen Huang's resignation as chief executive. The company's board appointed finance chief Colette Kress as interim CEO, leaving investors uncertain about its long-term leadership as competition intensifies across the AI chip industry. Although Nvidia showed signs of stabilizing Friday, its recent decline has highlighted the risks of concentrating too heavily on a single company within the broader AI investment boom.
Looking Ahead
Wall Street enters next week with inflation concerns still unresolved and Nvidia's upcoming earnings report set to become a major test for technology stocks. Investors will be watching whether the chipmaker can reassure shareholders about its leadership transition while demonstrating that demand for AI infrastructure remains strong. October retail sales figures and minutes from the Federal Reserve's latest meeting could also influence expectations for December's interest rate decision. Friday's modest gains suggest investors remain willing to buy stocks despite persistent inflation and uncertainty surrounding the technology sector. However, elevated Treasury yields and sharply contrasting earnings reactions could keep markets volatile as Wall Street approaches the final weeks of November.
