Here are 3 forces that drove a whirlwind week for the stock market

Snowballing sales crashed the stock market on Friday; There was a striking return compared to the record levels at the beginning of the week. Chip stocks fell in the final trading session of last week. There has been some weakness in the technology since club name Broadcom's earnings disappointed. But Friday's selloff reached the next level as a strong jobs report dashed hopes for a Fed rate cut and the 10-year bond yield rose above 4.5%. The S&P 500 and Nasdaq lost 2.6% and 4.2%, respectively, on Friday, making Tuesday's record-high closes seem like a distant memory. The massive shift of technology into lagging sectors like healthcare and finance has created some winners for us. Throughout the week, Eli Lilly gained 2.4% and Wells Fargo gained 5.7%. When all was said and done, weekly losses in the S&P 500 and Nasdaq mirrored Friday's declines. The S&P 500 ended its nine-week winning streak. Let's take a closer look at what drove the market move last week, starting with unmet sky-high earnings expectations for Broadcom and two other Club tech names. Hot stocks heading for earnings It all started on Wednesday, when Palo Alto Networks shares fell despite posting a strong bullish and bullish quarter the previous evening. The stock went into print hot after setting a new record on Monday. Sellers pushed the stock down 5.6% as management reiterated rather than raised its long-term financial outlook. It didn't change our perspective on Palo Alto. We love that management is finally showing Wall Street that AI can speed up their business. That's a huge number considering how badly cyber stocks sold off earlier this year over what Jim Cramer said were unfounded outage concerns. For the week overall, Palo Alto fell 3.4%. It was a similar story as CrowdStrike reported better-than-expected earnings and forward guidance on Wednesday evening. The stock fell more than 10% in Thursday's session but closed down less than 4%. Like Palo Alto, CrowdStrike's weakness can be attributed to falling short of lofty expectations amid near-record high shares. We were not discouraged. CrowdStrike also showed us that AI is a boon for business. CEO George Kurtz said it himself on the conference call. Unfortunately, CrowdStrike sold further on Friday, losing more than 8% for the week. But the biggest decliner was Broadcom, whose shares fell 12.6% following Thursday's earnings. The price action here might be a little more understandable because this wasn't just a failure to provide stronger guidance; It was also a lower than expected revenue figure in the reported quarter. The AI-related parts of his job were strong. We are also encouraged by management's forecast of continued AI semiconductor revenue growth in fiscal 2028. This wasn't enough to save stocks. The selloff continued on Friday, with Broadcom falling 13.7%, making it our worst stock of the week. Weekly losses in our newest chip stock, Intel, were neck-and-neck with Broadcom. Intel lost 13.5% for the week. We initiated a position on Wednesday and went lower on Friday, buying more shares. We entered Intel because of its strong central processing unit (CPU) business, which is well positioned for the age of agency AI. The ratio of CPUs to GPUs in data center server racks is shrinking. GPUs are graphics processing units for which Nvidia dominates the market. Kingmaker Nvidia Nvidia fell a much more modest 2.9% for the week. At the influential Computex conference in Taiwan on Monday, CEO Jensen Huang announced that Nvidia is entering the personal computer market with chips based on the Arm Holdings architecture. Shares of Arm, which is also a club name, increased by 15.7 percent with the news. However, it was not affected by the sales in chip stocks. Kol shares lost 3% for the week. The arm has been an incredible position for us; Its shares are still up 213%. In the middle of all this carnage was a big chip stock winner. Marvell Technology's shares gained more than 28% last week. On Tuesday, Jensen predicted Marvell would be "the next trillion-dollar company." Before these comments, which caused the stock to soar, Marvell's market value was approximately $200 billion. Jim said the sharp rise in Marvell shares is concerning. "These are big moves, and they're based on nothing more than one person saying it." Still, Jim remains bullish on Marvell, which has no Club stock. IPOs and stock sales The other big story of the week that will carry over into next week and beyond is the influx of stocks expected to hit the market due to three major IPOs. The first is SpaceX, which will begin trading next Friday. Elon Musk's satellite, rocket and artificial intelligence company last Wednesday announced plans to raise about $75 billion at a market capitalization of $1.8 trillion by selling 555.6 million shares at a fixed price of $135 each. SpaceX is just one of many high-profile IPOs. Anthropic, known for its large family of language models called Claude, secretly filed its IPO prospectus on Monday. The deal could create a historic share sale for investors ready to jump into AI, as Anthropic recently closed a financing round that valued the startup at $965 billion. This news puts Anthropic ahead of rival OpenAI, which is preparing plans to list on the public market. The startup recently reached a valuation of $852 billion. Companies don't just raise capital through public offerings. Last week, Alphabet announced plans to sell $85 billion in shares to raise more funds for AI development. Shares of Google's parent company fell nearly 4% on the news Tuesday and are down 3% for the week. Investors generally don't like when companies sell stock to finance investments because it can dilute their existing shares. The move raised questions about whether other megacaps would follow suit. Club stock Meta Platforms collapsed on Friday after the Financial Times reported that the company could potentially raise tens of billions of dollars in a stock offering to fund its AI push. The commodity lost more than 6% for the week. Jim offered a word of caution about all these deals, saying that a large increase in stock supply could create a short-term headwind in the market. A spate of major tech IPOs and share sales could cause investors to sell existing holdings to raise cash and buy shares elsewhere. "Bull markets can die because of business conditions, interest rates or geopolitical turmoil, but it's the new oversupply that most easily drives them to the slaughterhouse," he said on Wednesday's "Mad Money" show. “As in any market, when supply exceeds demand, prices immediately fall.” Jim continued: "I worry that the supply of stock will exceed investor demand. Looking at the calendar right now, I don't know how we can cover all these deals without crashing the market. It's too much capital at once." (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. 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