CNBC Daily Open: Nvidia’s “drop the mic moment” | 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.

wall street rally
stock market rises Federal Reserve Chairman Powell said:Time is up” Lower interest rates. Dow Jones Industrial Average jumped 462 points, while Nasdaq Index and S&P 500 Index rose 1.47% and 1.15% respectively. This week, the Dow Jones rose 1.3%, the Nasdaq rose 1.4%, and the S&P 500 rose 1.45%. Meanwhile, the 10-year Treasury bond yield Ministry of Finance slipped and fell at the same time US oil prices It rose more than 2% and returned to above $74 a barrel.

“The time has come”
After Powell Signs of imminent rate cutmarket attention has turned to time and extent of reduction. Traders now expect a 25 percentage point rate cut in September, with growing expectations for a larger cut of 0.5 percentage point. A significant rate cut is increasingly likely, especially if the August jobs report mirrors the weakness in July’s data. As the Fed’s mid-September meeting approaches, CNBC’s Jeff Cox looks at key questions Economic indicators that may influence the final decision.

Return from space
boeing companyStarliner capsule will return Take off from the International Space Station without astronauts. NASA Astros Butch Wilmore and Suni Williams will instead Return aboard SpaceX’s Dragon spacecraftextending their stay on the International Space Station by approximately six months. The decision comes after problems with the Starliner’s propulsion system occurred during crew flight tests. “We want to learn more about the root causes and learn about design improvements so that Boeing Starliner will be an important part of how we ensure crew access to the International Space Station,” said NASA Administrator Bill Nelson. The setback could threaten Boeing’s involvement NASA’s Commercial Crew Program, which has absorbed Losses exceeded $1.5 billion.

Rights defense
Intel Working with Morgan Stanley and other consultants Defend potential activist investors Because it’s trying to compete with rivals like Nvidia. Intel will cut 15,000 jobs as part of a $10 billion cost-cutting plan as Chief Executive Pat Gelsinger attempts to turn around the chipmaker. Morgan Stanley has worked with Intel before, including spinning off Intel moving eye 2022.

export control list
China strongly opposes the US decision Due to suspected ties to the Russian military, 42 Chinese companies were added to its export control list. The United States also added 63 Russian companies and 18 companies from other countries that send American electronics to Russian military-related entities that produce thousands of Shahed-136 drones used in the fight against Ukraine. China’s Commerce Ministry said the decision disrupted international trade and pledged that Beijing would protect the rights of Chinese companies.

(PRO) Transaction Fed cuts interest rates
As Fed prepares to cut rates, Evercore ISI highlights Some regional banks could outperform. These banks are actively reducing asset sensitivity through strategic balance sheet adjustments to enable them to succeed in a lower interest rate environment.

“This will be a Time to put down the mic” for NVIDIAWedbush’s Dan Ives told CNBC’s Worldwide Exchange. “Powell, Jackson Hole – very important – but the market, the rest of the year, I can say what’s going to happen in 2025, it all starts with Nvidia’s earnings report.”

On Wednesday, Nvidia, the undisputed leader in artificial intelligence, will report second-quarter earnings after the market close. Although the stock fell to a low of $90.69 on August 5 as the market capitulated on economic concerns, it has soared 161% this year.

Wall Street remains bullish on Nvidia. As CNBC’s Jesse Pond reports, the options market is Bet Nvidia will get a boost from its earnings Report. Enthusiasm for the stock doesn’t appear to have waned, even considering delays in the development of Blackwell chips – CEO Jensen Huang said the project would cost as much as $10 billion to develop.

“I think a delay of two to three months is like an asterisk. It doesn’t make a difference from a demand perspective,” Ives said.

As the footnote shows, while Nvidia continues to dominate the AI ​​chip market, its rival Intel lags significantly behind. Intel not only missed out on the smartphone revolution, but it also fell behind in the artificial intelligence race. In terms of revenue, Nvidia has surpassed Intel to become the largest chip manufacturer, while Intel’s current market value is only about 35 times that of Intel. Faced with these challenges, Intel has enlisted the help of Morgan Stanley and other advisors to fend off potential activist investors.

Wall Street ends the week on a strong notePowell’s signal that a rate cut is imminent reassures the Federal Reserve, although the timing and size of the rate cut still depend on upcoming economic data.

Former Chief Economist, Pacific Investment Management Company Paul McCulley predicts series of 25 basis point rate cuts at the next few FOMC meetings. McCully also believes that if the August employment report released on September 6 shows signs of weakness, a more aggressive 50 basis point interest rate cut may be implemented.

Powell “draws a line in the sand that we don’t want to see a further slowdown in the labor market — and we’re there,” McCully said on CNBC.quack in the street“I don’t think it’s the base case yet, but he’s clearly opened the door to early easing.”

David Russell, head of global market strategy at TradeStation, said Powell’s dovish tone also sent a strong signal to the market. “This keeps the market tailwinds heading into year-end, making it difficult for the market to retest this month’s lows,” he said.

—CNBC’s Sarah Min, Rohan Goswami, Lisa Kailai Han, Michele Luhn, Michael Sheetz, Jesse Pound, Jeff Cox, Alex Harring, Yun Li, Pia Singh and Spencer Kimball contributed to this report.