Chipmaker Selloff Drags Stocks Lower Despite Cooler Inflation Data

Stocks fell Friday as a selloff in chipmakers, led by a 6% drop in a gauge of chip giants, overshadowed inflation data that eased concerns about aggressive Federal Reserve rate hikes. The Nasdaq 100 lost 2.3%, and Bitcoin slid below $70,000. Nvidia shares dropped 15% since last Friday, heading for their worst week since January 2025, amid worries following CEO Jensen Huang’s ouster. The company faces regulatory probes into export restrictions, and its earnings report on Nov. 17 is seen as a key test for the AI trade. The producer price index rose in October at its fastest annual pace since 2022 but came in slightly below estimates. Analysts expect a 25-basis-point rate hike, noting that a larger increase could pose risks to the fragile economy.