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Stock Market Today: Dell Earnings Crash the Nasdaq Composite
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Tech Stocks Bounce off Session Lows
With markets now closed for the day, many tech stocks rebounded from session lows.
- NVIDIA hit a low of $131.80 but closed the day down 1.15%, at $135.34.
- AMD traded for as low as $132.96 but saw shares rebounded to $136.24 at market close. It was down 1.07% today.
Other stocks didn’t rebound as much. For example, Broadcom closed down 3.08%. Overall, the Nasdaq Composite fell .60% today.
Notable Upgrades and Downgrades Today
Here are a few key calls from Wall Street that are moving stocks in today’s market:
- Crowdstrike (Nasdaq: CRWD): Had its price target raised to $400 from $365 at Bank of America, with the bank maintaining a ‘buy’ rating on the stock. BofA expects Corwdstrike to move through near-term headwinds from its major outage in the summer and growth to accelerate in the back half of 2026. A less bullish call on Crowdstrike came from Piper Sandler, which lowered its price target to $290 from a prior level of $375. The company’s stock is down 6% today.
- Amgen (Nasdaq: AMGN): Had its price target lowered to $330 from $360 by RBC Capital. Amgen was one of the market’s worst performers yesterday after releasing Phase II data on its weight loss drug that came in below expectations.
Heading into noon ET, it’s a tale of two markets the day before Thanksgiving. Industries like financials, utilities, and defensive consumer stocks continue to see money rotate into them while investors flee technology.
Let’s look at what news continues driving these shifts today.
Check-In On Markets
Most indexes are in the red today, but the Nasdaq is the biggest laggard among major indexes (all prices as of 12 p.m. ET):
- Nasdaq-100: Down 196.75 (-1.03%)
- S&P 500: Down 28.13 (-.47%)
- Dow Jones Industrial Average: Down 31.20 (-.07%)
- Russell 2000: Up 8.02 (+.33%)
Today, healthcare is leading returns. Healthcare stocks are up .94%, real estate is up .92%, and utilities have notched a .51% gain. Overall, 7 out of 11 market sectors are positive.
However, technology stocks are deeply negative. Consumer discretionary – which has heavy weighting to stocks like Amazon and Tesla – is down .72% while information technology stocks are down 1.87%.
Dell Is Sinking Technology
Technology stocks are likely seeing some sell-off from ‘sector rotation.’ The magnificent 7 group of stocks trades for about 30 times forward earnings while the 490 other stocks in the S&P 500 trade for 19 times forward earnings.
Investors that a Trump administration pushing less regulation and growth policies across the economy will lead to more benefits for ‘cheaper’ stocks in industries like financials, consumer staples, and industrials.
However, one piece of news today that’s putting extra selling pressure on technology stocks is Dell‘s (NYSE: DELL) earnings. The company issued lower-than-expected revenue guidance for next quarter, which caused its shares to fall 13%.
Many investors are also ‘reading through’ Dell’s earnings that AI sales could be slumping. Key AI companies are seeing sell-offs today.
- NVIDIA: Down 3.1%
- Broadcom: Down 3.8%
- AMD: Down 3.1%
- ASML: Down 1.7%
The list goes on, but the key point is that investors are using Dell’s earnings as an excuse to shift out of technology stocks. Should investors be worried by Dell’s earnings?
While sales are lighter than expected next quarter, Dell’s AI server backlog grew $700 million quarter-over-quarter to $4.5 billion, and its AI pipeline grew 50% quarter-over-quarter. It appears that AI demand is holding up well, but the company is likely seeing an “air pocket” as demand shifts over to NVIDIA’s next-generation Blackwell system. Our vote: today’s broad sell-off on Dell earnings is likely a market overreaction.
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