Traders work during morning trading on the New York Stock Exchange on January 3, 2024 in New York City.
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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
Nvidia sparks backlash
this S&P 500 Index and Nasdaq Index Slideshow shot over three days Nvidia Rebounding from the sell-off. this Dow Jones Industrial Average Dropped nearly 300 points boeing company, Goldman Sachs and The Home Depot All refused. 10-Year Treasury Bond Yield Ministry of Finance used to be constant ahead of key inflation data on Friday. US oil prices down 1% As investors focus on tensions in the Middle East and summer gasoline demand.
Rivian stakes
Volkswagen will Investment up to US$5 billion When the electric vehicle starts RivianThe company has been under pressure due to losses and cash burn. Volkswagen will invest $1 billion initially, with the remainder invested over the next few years as Rivian prepares to launch newer models. Volkswagen is the second traditional car manufacturer after Volkswagen Ford Invest in Rivian – The Detroit automaker sold a majority stake in the startup in 2023 after deciding it would no longer make vehicles with the startup. Rivian shares soared 40% in after-hours trading.
Trump inflation warning
sixteen Nobel Prize– Award-winning economists signed a joint letter Tuesday Warning about perceived economic risks If the former president Donald Trump Upcoming re-election, including “reigniting” inflation. “While we each have different opinions on the specifics of various economic policies, we all agree that Joe Biden’s economic agenda is far superior to Donald Trump’s,” the economists wrote. They said: “ There are reasons to worry that Donald Trump will reignite inflation with his fiscally irresponsible budget.”
Interest rate hike?
Federal Reserve Board Governor Michelle Bowman said She is willing to raise interest ratesIf inflation fails to decline or even worsens. She acknowledged that interest rates may be cut in the future if inflation continues to move toward the Fed’s 2% target, but stressed that more evidence is needed before easing monetary policy. Bowman’s hawkish stance is in line with the general sentiment among Fed policymakers, who are seeking stronger confirmation that inflation is falling.
Abuse of bundling
The EU has accused Microsoft Violation of antitrust rules “Abuse” of bundling For its Teams and Office products, it claims this practice stifles competition. Despite Microsoft’s recent move to spin off Teams from Microsoft 365, the EU believes the changes are not enough. The investigation was launched following a complaint sales forceMicrosoft-owned Slack went on to say that Microsoft could face hefty fines if found guilty. Microsoft has expressed its willingness to cooperate and find solutions to address the EU’s concerns.
(PRO) Dow Dogs
While Nvidia’s artificial intelligence-driven share price surge has attracted investors, don’t ignore the “dogs of the Dow.” This dividend-focused strategy outperforms the market, Seven of nine stocks outperformed the Dow Jones Industrial Average This year. One of the “dogs”, Goldman Sachs, even had a return rate of over 20%.
bottom line
And China’s Chang’e-6 probe returns to Earth carrying samples From the far side of the moon – a world first – Boeing’s Starliner stranded in space Helium leaks and thruster failures.
In space, in the air and on the ground, Boeing aircraft safety issues There also appears to be a knock-on effect on its main European rivals. Just when Airbus thought it had a clear runway to ramp up aircraft deliveries to customers, it gets hit supply chain issues.
Reuters reports that the problems stem from engine manufacturers CFM reluctant to increase engine supply Airbus was converted to Airbus AG due to ongoing problems with Boeing. Boeing has also offered to acquire Spirit AeroSystems, which makes fuselages for Boeing and Airbus, for about $35 per share, according to Bloomberg. Airbus has threatened to block the deal Because it does not want Boeing involved in the development of its new aircraft. The Toulouse, France-based aircraft manufacturer wants to have more control over its supply chain. These concerns have given rise to airbus Shares fell nearly 10% on Tuesday.
back More than $540 billion in market value wiped out In three trading days, Nvidia’s stock price rose nearly 7%. NvidiaThe recent plunge has not scared off investors willing to make leveraged bets on continued gains in stocks. this GraniteShares 2x Long NVDA Daily ETF (NVDL) According to FactSet data, new assets have been added in the past three trading days, with net inflows totaling $1 billion.
However, according to Goldman Sachs, hedge funds Exit tech stocks Strong gains in four of the last five weeks have pushed the tech-heavy Nasdaq lower and supported Dow Jones Industrial Average. However, the Dow cut these benefits.
According to Piper Sandler’s Craig W. Johnson The market will pull back, More time will be needed to see if the rotation is sustainable or if his expected integration will be broad-based. He predicts the S&P 500 could end the year at 5,050, down 7% from Monday’s closing price.
“We believe some consolidation/pullback in the broader market is overdue as summer approaches,” Johnson wrote on Tuesday. “Our breadth indicators must improve significantly to confirm sustainable sector rotation. Over the next few days “This week will reveal whether the current trend continues or evolves into a broader market correction.”
—CNBC’s Hakyung Kim, Samantha Subin, Jeff Cox, Yun Li, Michael Wayland, Sophie Kiderlin, Spencer Kimball, Katrina Bishop, Jesse Pound and Sara Min contributed to this report.
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