Middle East tensions send oil prices soaring | Wilnesh News

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Little changes on Wall Street
this S&P 500 Index and Nasdaq Index to a large extent Maintain profits in volatile trade Ahead of key inflation data. The S&P 500 ended little changed, up 0.23 points, while the Nasdaq rose 0.21%, boosted by a surge in Nvidia shares. However, Dow Jones Industrial Average down 0.36%. 10-Year Treasury Bond Yield Ministry of Finance lower edge.

tensions in the middle east
U.S. crude oil prices Rose It rose more than 4% on Monday, topping $80 a barrel Pentagon sends additional troops to Middle East in response to heightened tensions. Defense Secretary Lloyd Austin ordered an aircraft carrier strike group including F-35 fighter jets and a missile submarine to be dispatched to the region. Israel has been preparing for retaliatory strikes from Iran and Hezbollah after the Hamas leader was assassinated in Tehran.

Inflation outlook
U.S. consumers believe price increases will gradually decline and expect three years of inflation According to a report from the Federal Reserve Bank of New York, interest rates hit a record low of 2.3%. Although inflation is expected to remain high next year, consumers expect it to decline in the coming years. The report comes amid expectations The Fed may lower interest rates next month. The Labor Department’s Consumer Price Index report to be released on Wednesday is expected to show a 0.2% increase last month and an annual increase of 3%, still above the Federal Reserve’s 2% target.

Elliott settles with Starbucks?
activist investor Elliot Management Company and Starbucks exist Settlement NegotiationsPotential terms include providing Elliott’s Jesse Cohn with a board seat and improved governance, CNBC’s David Faber reported. CNBC previously reported that talks held last week would allow Chief Executive Laxman Narasimhan to retain his job and position on the board. Starbucks Chairman Emeritus Howard Schultz has been opposed to the settlement. Eliot built a Starbucks stake worth $2 billion.

Adani shares fall
Shares in Adani Group of Companies fall after monday Hindenburg Report Conflict of Interest Involves Chairman of Market Regulator of India. Despite the sharp recovery in share prices, these companies lost $2.4 billion in market value. Hindenburg accused Madhabi Puri Buch, chairman of India’s markets regulator SEBI, of investing in offshore funds linked to Adani Group. Bucher has denied the accusations.

(PRO) Two months of struggle
Investors could be facing a tough two months as Wall Street’s fear gauge recently surged to its highest level since the pandemic. Bank of America noted that the S&P 500 typically falls after volatility spike.

NVIDIA Wall Street stocks were up 4% at the start of the week, bringing their year-to-date gains to more than 120%. However, the chip giant’s stock price fell more than 11% in the third quarter as investors expressed concerns about the return on investment in artificial intelligence and turned their attention to neglected areas of the market.

Nonetheless, UBS analyst Timothy Arcuri Reiterate buy rating Ahead of the earnings release on August 28, our stock price target for Nvidia is $150, a 37% upside from Monday’s closing price. Arcuri also raised his forecast for the company’s 2025 earnings per share.

Steve Grasso, CEO of Grasso Global, told CNBC “exchange“Nvidia will soon see Return $120. “This is definitely a momentum stock,” Grasso said.In the blink of an eye” During Monday’s session, the price will move away from $115. “I think you’re going to see 120 frames sooner or later.

Niles Investment Management’s Dan Niles is more cautious, saying the stock has Has not hit 2024 lows yet.

Capital investment “is going to be the key to whether this market goes up or down,” Niles said, adding that the supply of AI chips is catching up with demand.

“I firmly believe their revenue and EPS will beat this quarter, but like you see with Microsoft, Amazon, Google or Tesla. I personally think the guidance is likely to be weak.”

Investment research firm TS Lombard also issued a warning to investors, highlighting high expectations for profits. However, the company still sees large technology as a key driver of the market.

“There is no doubt that it is U.S. technology giants that continue to set the tone for the stock market,” Constantinos Venitis and Davide Oneglia wrote in a letter to clients. “Their weight – in terms of market capitalization, earnings and margins – is simply too heavy to allow continued broad divergence in the market at this stage.”

Meanwhile, Savita Subramanian, head of U.S. equity strategy at BofA Securities, said Investors are advised to focus on large-cap value stocksespecially in the industrial, financial and materials sectors.

“We are at a moment You don’t necessarily want to sell wholesale to the marketyou want to pick your niche,” Subramanian said on CNBC “Quacking in the streets.” “I really like the large-cap stocks here. I think this is an undervalued area of ​​the market and expected to do well in the coming months and years.”

— CNBC’s Alex Harring, Jeff Cox, Sarah Min, Sam Meredith, Rohan Goswami, Brian Evans, Tanaya Macheel and Spencer Kimball contributed to this report.