Stocks Gain for the Week, Nvidia Fails to Impress, and Gold Shines

U.S. stocks, led by small caps, ended the week higher on steady bond yields. A well-anticipated earnings report from Nvidia contributed to market volatility but failed to fuel a rally in large-tech caps. Gold continued to shine, outperforming equities for the week and the year.
The S&P 500 ended Nov. 22 at 5,969, up by 1.68 percent for the week; the Dow Jones finished at a new high, 44,296, up by 1.96 percent; the tech-heavy Nasdaq ended at 19,003, up by 1.73 percent; and the small-cap Russell 2000 finished at 2,406, with a gain of 4.46 percent.
That’s a sharp turnaround from the previous week, when small caps led equity indexes lower on rising bond yields. But the recovery wasn’t smooth, with the CBOE volatility index fluctuating for most of the week before stabilizing at the end of the week.
Then, Nvidia’s third-quarter earnings report added to the technology sector’s market volatility. Wall Street analysts have been closely watching Nvidia’s performance, as it is a bellwether for artificial intelligence (AI) spending and the rally in tech shares in the past couple of years.
Nvidia’s stock rose ahead of its earnings report on the afternoon of Nov. 20, heightening market expectations. But it was all over the map in the subsequent two trading sessions following the report’s release. The tech giant beat market expectations, but more is needed to please the most bullish expectations. In addition, investors needed help deciding whether the current market valuation already reflects the solid third-quarter financial results.
Sidharth Ramsinghaney, director of strategy and operations with cloud communications company Twilio, is optimistic about Nvidia’s shares and AI spending.
“While we’re clearly in a period of extraordinary AI infrastructure buildout, it’s important to understand this isn’t a typical semiconductor cycle,” he told The Epoch Times in an email. “We’re seeing sustained demand across multiple waves—first from hyper-scalers, then enterprise adoption, and now emerging international markets.”
But he sees some potential risks, too.
“The key metrics to watch aren’t just the headline revenue numbers, but the composition of NVIDIA’s order book and customer diversification,” he said. “With AI spending becoming disciplined, the sustainability of their growth trajectory will depend on their ability to expand beyond the major cloud providers.”
Clark Bellin, president and chief investment officer of Bellwether Wealth, is skeptical about Nvidia’s stock because of its valuation. He said he would rather wait for a better entry point while looking into other AI sectors for better investment opportunities.
“For investors who do not own Nvidia, it may be best to wait for a pullback instead of establishing a position in this name when the stock is near record highs,” he told The Epoch Times in an email.
“For investors looking for exposure to AI, other areas of the market are tied to the AI story with more attractive valuations, such as utilities and companies focused on strengthening the electrical grid and supply of electricity. ”
Bellin said he believes that the stock market is in an uptrend post-election, as the election uncertainty has disappeared.
Meanwhile, gold climbed to $2,718 per ounce, up by 5.87 percent for the week, outperforming equities. Gold is up by more than 31 percent for the year, outperforming the S&P 500, which is up by 25.15 percent.
Last week’s gains in the yellow metal came despite elevated bond yields and a stronger dollar, meaning that something else is in play, such as the escalation of the Russia–Ukraine war and the uncertainty surrounding the fiscal program of the incoming Trump administration.
Matt Willer, a private assets investment expert, said he expects more gains at the beginning of 2025. He is quoting Goldman Sachs analysts, who see the yellow metal soaring to $3,000 per ounce by the end of 2025 because of growing purchases by central banks and the prospect of declining interest rates, which lower the “carry cost” of the yellow metal.
“Central banks have increased their purchases of gold recently, leading to a shift in the dynamics between gold prices and interest rates,” he told The Epoch Times in an email.
“Anticipated reductions in interest rates by the Federal Reserve may increase the attractiveness of gold as an asset that does not yield returns and could potentially push prices up.”
In addition, Willer said he sees ongoing geopolitical instabilities, such as the conflicts in Ukraine and the Middle East, boosting the reputation of gold as an asset during uncertain times.