Overnight US stocks | The three major indices rose this week. NVIDIA Corporation (NVDA.US) fell 13% this week, with its market capitalization dropping below the US$40,000 threshold.

Friday, the three major indices declined, with NVIDIA Corporation's closing market capitalization falling below the US$4 trillion mark, though the three major indices still posted cumulative gains for the week. The Dow rose 2.07% for the week, the Nasdaq gained 2.27% for the week, and the S&P 500 rose 2.51% for the week. [US Stocks] At the close, the Dow rose 50.46 points, or 0.10%, to 52,347.55; the S&P 500 fell 30.73 points, or 0.40%, to 7,561.67; the Nasdaq fell 229.82 points, or 0.91%, to 25,136.27. AMD (AMD.US) fell 8.75%, Dell Technologies, Inc. Class C (DELL.US) fell 7.24%, Coreweave (CRWV.US) fell 6.13%, SanDisk (SNDK.US) fell 5.59%, Broadcom Inc. (AVGO.US) fell 4.76%, SK Hynix ADR (SKHY.US) fell 4.3%, and NVIDIA Corporation (NVDA.US) fell 2.01%; Meta Platforms (META.US) rose 2.9%, and Microsoft Corporation (MSFT.US) rose 0.17%. NVIDIA Corporation fell 13% for the week, its largest weekly decline since April 2025 and its sixth consecutive weekly decline, the longest losing streak since 2012, with more than US$573 billion in market value erased this week. The Nasdaq Golden Dragon China Index rose 0.84%, Baidu Inc Sponsored ADR Class A (BIDU.US) rose 0.66%, and Alibaba Group Holding Limited Sponsored ADR (BABA.US) fell 0.02%. [European Stocks] Germany's DAX30 index fell 63.52 points, or 0.24%, to 26,752.54; the UK's FTSE 100 index rose 39.07 points, or 0.36%, to 10,902.16; France's CAC40 index rose 7.55 points, or 0.09%, to 8,368.91; the Euro Stoxx 50 index fell 10.43 points, or 0.16%, to 6,388.55; Spain's IBEX35 index rose 52.55 points, or 0.26%, to 20,018.05; Italy's FTSE MIB index rose 53.83 points, or 0.10%, to 51,862.50. [Forex] The US dollar index, which measures the greenback against six major currencies, rose 0.23% on the day and closed at 103.412 in late forex trading. As of late New York forex trading, 1 euro traded at US$1.1023, down from US$1.1056 the previous trading day; 1 pound traded at US$1.3210, down from US$1.3236 the previous trading day. 1 dollar traded at 159.78 yen, down from 159.83 yen the previous trading day; 1 dollar traded at 0.8395 Swiss francs, up from 0.8353 Swiss francs the previous trading day; 1 dollar traded at 1.4267 Canadian dollars, up from 1.4260 Canadian dollars the previous trading day; 1 dollar traded at 10.0722 Swedish kronor, up from 10.0226 Swedish kronor the previous trading day. [Cryptocurrencies] Bitcoin fell more than 4.7%, at US$68,001 as of publication; Ethereum fell more than 4.7% to US$1,919. [Precious Metals] Spot gold rose 0.1% to US$3,881.81; spot silver fell 2.71% to US$48.704/oz. [Crude Oil] The December light crude futures contract on the New York Mercantile Exchange fell 18 cents to settle at US$88.56 per barrel, a decline of 0.2%; the January London Brent crude futures contract rose 2 cents to settle at US$95.84 per barrel, a gain of 0.02%. [Macro News] US October PPI annual rate hits four-year high, further reinforcing Fed rate hike expectations. US producer prices rose further in October, posting the largest annual increase in four years, supporting expectations that the Federal Reserve may continue raising rates after the widely anticipated hike next month. The Labor Department's Bureau of Labor Statistics said Friday that US October PPI rose 0.3% month-on-month, below the expected 0.4%, with the previous reading revised up to 1.4%. Last month, producer prices were boosted by a 0.5% increase in goods prices, mainly food and basic organic chemicals. Services prices rose 0.2%, the fifth consecutive monthly increase. October PPI surged 6.5% year-on-year, the largest annual increase since November 2022, after rising 6.3% in September. The report followed this week's October CPI data, which showed a larger-than-expected increase. In addition, last week's October nonfarm payrolls surged, with the unemployment rate falling to 4.1% from 4.2% in September. Combined with comments from Fed Governor Waller, financial markets are now oscillating between "pricing in a 25-basis-point hike in December" and "leaving room for a 50-basis-point hike." US Treasury considering short-term loan to help Venezuela repay US$2.3 billion debt. According to media reports, the US Treasury is considering providing a short-term bridge loan to help Venezuela repay about US$2.3 billion in debt owed to the Inter-American Development Bank (IDB) in order to restore financing eligibility. The IDB approved re-engagement with Venezuela on Friday; after clearing its arrears, Venezuela could receive up to US$6 billion in loans from the bank over the next two years, and the World Bank could also provide up to US$5 billion over the same period. The US plans to provide funds to the IDB through an overnight financing arrangement rather than directly disbursing funds to Venezuela. The plan may draw attention from the US Congress; Democratic Senator Warren has previously opposed using the Exchange Stabilization Fund to guarantee Financial Institutions, Inc. investing in Venezuela. Fed's Daly: Inflation continues to deteriorate, further rate hikes likely necessary. San Francisco Fed President Daly said Friday that given the deteriorating inflation situation, the Fed will likely need to raise rates further. She noted that core CPI has risen about 0.3% month-on-month for three consecutive months, above the 0.2% or lower level consistent with the Fed's 2% inflation target. She is particularly concerned about the poor trend in services inflation excluding housing, as such prices tend to be stickier. Corporate input costs are rising, and more producers say profit margins can no longer absorb cost pressures and are considering passing costs on to consumers. Daly said she will discuss rate hikes with colleagues at the December meeting and future meetings and make a collective decision based on economic conditions. The Fed raised rates in September and held rates steady in October; the market currently expects 25-basis-point hikes at both the December 8-9 meeting and the January 26-27 meeting next year. Daly also said she will focus on consumer spending over the next one to three months, especially whether consumers will reduce spending during the holiday season due to rising prices. She said consumption remains resilient, but signs are emerging in some regions that consumers may gradually lose spending momentum. Fed's Collins hints at need for continued tightening, says fighting inflation takes priority over housing woes. Boston Fed President Collins signaled Friday that tighter monetary policy may be needed to cool prices. In a speech focused on the housing market, Collins said higher rates could limit housing affordability. But she added that, in the long run, ensuring price stability would benefit both the housing market and the broader economy. "In the near term, the higher rates sometimes needed to cool the economy and contain inflation can make buying and building homes more costly," Collins said in prepared remarks. "But over the long term, stable prices create a predictable economic environment that is good for the housing market." ECB's Nagel: Further rate hikes highly likely. ECB Governing Council member Nagel said Friday that if the current situation persists, the ECB will likely need to raise rates again. Nagel noted that the longer inflation remains elevated, the greater the risk of second-round effects. Compared with the September projections, the inflation outlook has deteriorated, energy prices are significantly higher than previously expected, and natural gas and electricity prices have also accelerated in recent weeks. At the same time, core inflation remains high, and short-term inflation expectations have risen along with headline inflation. Nagel said the European economy is currently showing some resilience, and a repeat of the 2022 inflation situation is unlikely, but only if the ECB fulfills its responsibilities. US Treasury Secretary optimistic about reaching trade agreement with Canada and Mexico. US Treasury Secretary Bessent said Friday that he believes the United States will reach a trade agreement with Mexico and Canada. Recently, US President Trump threatened to double tariffs on Mexico over the migrant caravan issue. "I am optimistic that we can reach a trade agreement with Canada and Mexico," Bessent said in a media interview. But he did not elaborate or mention Trump's warning to Mexico on Thursday. Trump's latest tariff threat comes at a sensitive stage in US trade negotiations with Mexico and Canada. In July, Trump decided not to extend the US-Mexico-Canada trade agreement, but related negotiations continue. Trump won a second term in 2024 partly because of US voters' concerns about the border. Since then, Trump has repeatedly highlighted certain migrant caravan issues, but in recent months he has also said the issue has lost political potency for him and his Republican colleagues. [Company News] Microsoft Corporation global service outage disrupts commodity trading, affecting oil price data and trading communications. Microsoft Corporation (MSFT.US) suffered a large-scale service outage on Thursday, affecting government agencies, businesses, and traders worldwide, with some trading teams forced to use phones, fax machines, and instant messaging tools. The disruption compounded trading complexity in the crude oil market amid heightened Middle East tensions, and some commodity price data releases were delayed. S&P Global, Inc.'s Platts had notified clients that some refined product, natural gas, and biofuel price updates might be delayed, with 22 biofuel prices suspended. Microsoft Corporation said Friday that service restoration was making progress, but more than 20 products and services could still experience errors. The outage also prevented some traders from sending and receiving emails, sending fuel price reports, and viewing profit and risk exposure reports, and some trading instructions had to be handled by phone and fax. Platts later said the incident had been resolved. Meta Platforms (META.US) tests new prediction market app with employees. According to people familiar with the matter, Meta Platforms employees have begun testing a prediction market app under development. The company typically takes this internal testing step before officially releasing a product to the public. The people said that on the app, currently called "Takes," employees can use "cred" (short for credibility) to bet on the outcomes of questions or events. Unlike other prediction markets operated by Kalshi and Polymarket, Meta's app does not allow users to bet with real money. The people said employees win "cred" points if their predictions are correct and lose corresponding points if they are wrong. The app is not yet open to the public.