Markets
Weekly Market Update - November 16, 2026
By Jason Crumley | Alek Sawchuk, CFA | Sherwin Pasha, CFA 16 November 2026 4 min read
Equity Market Commentary
Last week, North American equity markets advanced following the prior week’s technology sell-off, finishing higher despite a significant shock in the semiconductor space from Nvidia. The information technology sector led the recovery, supported by an upbeat earnings report from AI cloud and data centre specialist CoreWeave. The company was recently in the spotlight after its shares plummeted and its bond yields surged above 15%, driving worries in the AI sector.
Leadership turmoil sent shockwaves through the semiconductor industry. Nvidia shares plunged 13%, wiping out US$566 billion in market value, after CEO Jensen Huang resigned effective immediately following two reported extramarital affairs, with a third surfacing shortly after. Following the CFO’s appointment as interim CEO, an ongoing FBI investigation into one affair involving an alleged Chinese spy has intensified export compliance scrutiny. This relationship reportedly facilitated US$7.5 billion in restricted AI chip shipments to firms in China like Alibaba and Tencent, stoking investor fears of governance failures, broader regulatory restrictions, and supply chain disruptions. We provide further insight into Nvidia’s share price performance and valuation below in our Chart of the Week.
Conversely, robust AI infrastructure demand helped soothe market nerves. CoreWeave shares surged 25% after the company posted a 170% quarterly revenue jump to US$3.7 billion, forecasting adjusted profitability by early 2028. The stock is still down over 30% year-to-date amid AI bubble fears and concerns over its US$47 billion debt load. However, the CEO reassured investors that expansion is tied to committed demand, noting that US$9 billion in customer prepayments will fund the buildout without tapping unsecured debt markets.
The race to fund this infrastructure continues to shatter records. Claude AI maker Anthropic is targeting a US$1.4 trillion IPO valuation to raise a record US$90.4 billion, including US$26 billion backed by Google, AMD, and Nvidia. While trailing earlier US$2 trillion estimates amid cooling sentiment regarding debt-fuelled spending, Anthropic’s run-rate revenue hit US$81 billion in October. This growth overshadowed its US$900 billion in future computing commitments. The expected listing follows SpaceX's recent move raising US$75 billion at a US$1.75 trillion valuation.
Bond Market Commentary
Bond markets digested inflation data last week that sent yields higher across the curve in both Canada and the US. Persistent inflation indicators in both consumer and wholesale markets appear to be pushing the US Federal Open Market Committee (FOMC) to increase rates when it meets in December.
The US consumer price index (CPI) results were above expectations. The higher-than-expected inflation data triggered a sell-off in bonds on both sides of the border and pushed yields higher. While energy remains a primary catalyst for higher inflation, core inflation (which excludes food and energy) also came in above expectations. The conflict in the Middle East continues to constrain energy supply leading to price increases that have been felt globally. Wholesale inflation figures were reported on Friday as the producer price index rose 6.5% year-over-year in October. Not only did food and energy contribute to the increase in wholesale inflation, transportation and warehousing costs climbed 2% over the previous year.
The rising bond yields over the last week reflect inflation concerns and the expectations that the US FOMC will increase rates in its next announcement on Dec. 9, 2026. This marks the third consecutive month of higher-than-expected inflation readings. Comments from FOMC member Christopher Waller suggesting he would support a 50-basis-point rate hike if inflation keeps accelerating. Adding to the concern was Federal Reserve Bank of New York president and FOMC member John Williams stating that inflation was “far too high.”
Chart of the week
The scandal surrounding Nvidia CEO Jensen Huang has rippled through the technology industry and helped erase nearly US$1.8 trillion or 32% of Nvidia’s equity market value since its recent highs. Investor concern centres around a variety of areas and primarily focuses on the CEO’s relationship with an alleged spy for the Chinese government in addition to Huang’s status as a co-founder of Nvidia and a key figure leading a company at the forefront of revolutionary AI technology.
The chart above puts into context the strong share price performance of the company for long-term shareholders despite the more recent decline. We also highlight Nvidia’s price-to-earnings (P/E) ratio and offer this recent article for a further price-to-earnings ratio explanation. The significant decline in Nvidia’s P/E valuation not only reflects general market concern for inflated valuations in the chip sector, but also investor concern over the direction of Nvidia going forward. It is widely reported that the former CEO of Nvidia wanted a relatively flat organizational structure and had 50 staff directly reporting to him. Losing leadership of this magnitude without a clear succession plan could create some challenges for the company as it transitions leadership.
With all this in mind, it is important for investors to recognize the role and concentration risk that individual stocks play within a portfolio and review investment concentration on a regular basis.
The Week Ahead
Monday: Cdn consumer price index (CPI)
Tuesday: US retail sales, Nvidia & Home Depot earnings
Wednesday: Lowe’s and Target earnings
Thursday: Walmart earnings
Friday: Cdn retail sales
-
Past performance is not indicative of future performance.
-
ATB Wealth® (a registered trade name) consists of a range of financial services provided by ATB Financial and certain of its subsidiaries. ATB Investment Management Inc. and ATB Securities Inc. are individually licensed users of ATB Wealth. ATB Securities Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.
The information contained herein has been compiled or arrived at from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness, and ATB Wealth (this includes all the above legal entities) does not accept any liability or responsibility whatsoever for any loss arising from any use of this document or its contents. This information is subject to change and ATB Wealth does not undertake to provide updated information should a change occur. This document may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions and conclusions contained in it be referred to without the prior consent of the appropriate legal entity using ATB Wealth. This document is being provided for information purposes only and is not intended to replace or serve as a substitute for professional advice, nor as an offer to sell or a solicitation of an offer to buy any investment. Professional legal and tax advice should always be obtained when dealing with legal and taxation issues as each individual’s situation is different.
ATB Wealth experts are ready to listen.
Whether you're a beginner or an experienced investor, we can help.