November 20, 2024, Nvidia office in Austin, Texas.
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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.
What you need to know today
Dow Jones index continues to fall
this Dow Jones Industrial Average It fell 0.25% for the eighth consecutive day, the longest losing streak since 2018. S&P 500 Index up 0.38% Nasdaq Index It rose 1.24% and closed at a new high. Pan-European Stoke 600 The index fell 0.12%. French CAC 40 Moody’s downgraded the country’s credit rating to Aa3 from Aa2 on Saturday, causing the country’s stock price to fall 0.71%.
Correction: NVIDIA
NVIDIA Shares fell 1.7% to close at $132 on Monday. That’s down about 11% from November’s closing high of $148.88, putting Nvidia in correction territory. Still, Nvidia is up 166% this year, and a pullback doesn’t necessarily mean a continued downward trend. Additionally, other wafer manufacturers, e.g. Broadcomstill forging ahead.
clock ticking
TikTok on Monday asked the U.S. Supreme Court to consider its appeal to block a law that would effectively ban the app in the country until January 19. US President-elect Donald Trump.
Son shines in America
During a visit to Trump’s Mar-a-Lago resort on Monday, Softbank CEO Masayoshi Son announced that he will invest $100 billion in the United States over the next four years. In a joint statement with Trump, Son also pledged to create 100,000 jobs focused on artificial intelligence and related infrastructure.
(PRO) “Market Melting”
The market has Denominated in The Fed is more or less certain to cut interest rates by 25 basis points on Wednesday. However, Ed Yardeni, president of Yardeni Research, told CNBC that if a rate cut does occur, the Fed “will face the risk of a market collapse,” which could ultimately cause the stock market to fall from its highs.
bottom line
Playing the stock market feels like playing a Mario Kart game.
(For those unfamiliar with the fun of Mario Kart, it’s a racing game involving Nintendo’s Mario and his friends.)
One moment you’re comfortably ahead and the next moment someone’s falling behind you because you’re teetering on the turn.
Nvidia’s current situation is not enviable.
The frustrating thing for Nvidia and its shareholders is that besides After an investigation by Chinese regulators, there were no other major obstacles along the way: in fact, the company’s fundamentals are stable.
As Truist co-chief investment officer Keith Lerner pointed out, Nvidia’s position in the semiconductor and artificial intelligence industries remains unchanged. “You need Nvidia, you need their infrastructure chips,” Lerner said. “But I think the market is also indicating that there are other beneficiaries beyond that.”
The fact that the Nasdaq Composite hit a new high despite Nvidia’s decline suggests a shift toward other semiconductor and artificial intelligence-related stocks.
Most notably, Broadcom shares soared on Friday and Monday, driven by a strong fourth-quarter earnings report and raised price targets from banks.
“Momentum has been driving this stock,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. “I don’t think momentum has completely killed it yet, but momentum will do what momentum does, which is to seek higher.” flight altitude.
The main difference between playing Stock Market and Mario Kart is that the latter is a zero-sum game – if your friend wins, you lose – but that’s not always the case with the former. You can own both Nvidia and Broadcom and benefit from whoever is the leader.
—CNBC’s Ari Levy, Samantha Subin, Brian Evans and Jess Pound contributed to this report.
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