Nvidia CEO Jensen Huang delivers a keynote speech at the Consumer Electronics Show in Las Vegas, Nevada on January 6, 2025.
Patrick T. Fallon AFP | 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
Potential new bid for U.S. Steel
cleveland cliffs Working with competitors Nucor in a potential bid United States Steel Corporationacquired by Japan Nippon Steel Sources told CNBC’s David Faber that the plan was blocked by the White House earlier this month. Offers will be in the high share of $30. Nippon originally planned to acquire U.S. Steel for $55 per share, a deal worth more than $14 billion.
HSBC: China’s electric car boom will slow down in 2025
It is predicted that China’s new energy vehicle sales (including pure battery vehicles and hybrid vehicles) will only grow by 20% in 2025. HSBC Analyst. This is a significant decrease from 42% growth in 2024, according to the China Passenger Car Association. According to the association, as of the second half of this year, the penetration rate of new energy vehicles in new car sales has exceeded 50%.
Additional chip export restrictions
The U.S. government announced on Monday that the United States will implement new export restrictions on artificial intelligence chips based on the country’s classification level. For example, close allies of the United States will not face restrictions on obtaining artificial intelligence chips. Nvidia, the largest supplier of artificial intelligence chips, called the rule “overreaching” on Monday.
Will Elon Musk acquire TikTok US?
According to Bloomberg, the Chinese government is considering a plan to sell TikTok’s US business to Elon Musk report Monday, citing anonymous sources. If the U.S. Supreme Court decides to uphold a law that effectively bans Chinese-owned TikTok in the U.S., it would allow TikTok to continue operating in the country
(PRO) Opportunities beyond the “Seven Heroes”
The S&P 500 posted a 23% return in 2024, with the “Big Seven” stocks driving much of the drive. Make selective investments in Big Seven and see opportunities in technology stocks outside that basket.
bottom line
Technology stocks underperformed on Monday as investors took profits from 2024’s winners and looked for this year’s winners.
The tech-heavy Nasdaq fell 0.38%. Large technology companies popular with investors Monday’s trading session was broadly lower. Palantir The best-performing stock in the S&P last year fell 3.4%, while Nvidia fell 2%, building on last week’s losses. Nvidia fell nearly 6% during the period, while Palantir fell more than 15%.
Greg Bassuk, CEO of AXS Investments, said: “We believe this is a necessary part of the correction phase, and we may be further along in this correction than many investors realize since many stocks peaked in late November, early December. It goes further.
However, as investors turn to non-tech stocks such as Amgen, caterpillar and UnitedHealth.
This is not to say that these industries will become market leaders anytime soon, or at all. Sector rotation is a common phenomenon in the market as investors secure returns and look for the next stock with upside potential. The backdrop of rising interest rates has put more pressure on growth technology stocks than the value stocks that typically make up the Dow.
Moreover, judging from the latest earnings report, the craze for artificial intelligence is not over yet. British Semiconductor and Foxconn, whose transactions are Hon Hai Precision Industry. Both companies’ revenue has grown significantly due to high demand for artificial intelligence-related products.
Technology and artificial intelligence are unlikely to rotate in the long term. But people in the field cannot be ignored.
—CNBC’s Samantha Subin, Hakyung Kim and Brian Evans contributed to this report.
About The Author
