Tuesday, November 19, 2024, at Nvidia headquarters in Santa Clara, California, USA.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
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
S&P and Nasdaq post consecutive gains
US stocks Most of the gains were on Monday, with S&P 500 Index and Nasdaq Index Climbing the mountain for two days in a row. Artificial intelligence darling NVIDIA It closed at a record high. Pan-European Stoke 600 The index rose 0.95%, although it retreated from highs after U.S. President-elect Donald Trump dismissed reports that his tariffs might not be as severe as initially thought.
Foxconn shows artificial intelligence is still hot
Foxconn, which trades Hon Hai Precision Industrysaid Sunday statement The company’s fourth-quarter revenue increased by 15% year-on-year, the highest level in the company’s history during the same period. Data from Foxconn showed artificial intelligence remains hot, driving shares of Nvidia and other global semiconductor companies higher.
Electric vehicle charging network cooperation
shares Volkswagen and Xpeng Motors Shares rose on Monday after the two companies announced a memorandum of understanding pledging to open their respective ultra-fast charging networks to each other’s customers. Volkswagen and Xpeng Motors will also explore cooperation on co-branded ultra-fast charging stations, the companies said.
Trudeau steps down
Canadian Prime Minister Justin Trudeau said at a press conference on Monday that he will resign from the ruling Liberal Party but will continue to serve as prime minister until a new leader is elected before the election at the end of October. He added that the Canadian Parliament will suspend activities until a confidence vote on March 24.
(PRO) Quality stocks battle rising interest rates
this 10-Year Treasury Bond Yield Starting in 2025, the stock market continues to rise, putting pressure on the stock market. Michael Wilson, chief U.S. equity strategist at Morgan Stanley, advised investors to hold on to high-quality stocks to weather the ensuing market turmoil. Below is a list of stocks screened by Wilson’s team.
bottom line
Semiconductor stocks rose on Monday, boosted by upbeat news about the artificial intelligence industry.
Foxconn reported record fourth-quarter revenue, driven in part by growth in its cloud and networking products, including artificial intelligence servers designed by Nvidia.
Here’s the electronics maker’s earnings report Microsoft’s It announced on Friday that it plans to invest $80 billion in fiscal 2025 to build data centers capable of handling artificial intelligence workloads.
These reports indicate that companies are continuing to invest heavily in artificial intelligence, but the peak has not yet been reached.
Investors are also looking forward to Nvidia CEO Jensen Huang’s keynote speech at the 2025 Consumer Electronics Show, which will be held around 11 a.m. Singapore time.
Riding this tailwind, Nvidia shares rose 3.4%, rising for the third consecutive day, closing at a record $149.43. The company’s shares edged further higher in after-hours trading and are now hovering above $150.
More broadly, VanEck Semiconductor ETF An increase of more than 3%.
These measures helped push major stock indexes higher. High-tech Nasdaq Index was the clear winner, up 1.24%, while S&P 500 Index up 0.55%.
However, Dow Jones Industrial Average down 0.06%. The index gave up early gains amid reports that Trump may ease import tariffs, which would benefit blue-chip companies such as the consumer discretionary sector.
Despite these upbeat reports and positive market moves on Monday, the year ahead remains bumpy.
Sam Stovall, chief investment strategist at CFRA Research, said: “I think the market is quite optimistic about the technology sector right now, with earnings growth expected to be 20% this year compared to the market’s 12.8% earnings growth… but valuations do seem to be constrained.”
The real test of artificial intelligence, then, is whether companies can use it to increase revenue rather than just drive up the price of picks and shovels in the industry.
—CNBC’s Ryan Browne, Jordan Novet, Pia Singh and Tanaya Macheel contributed to this report.
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