November 20, 2024, Nvidia office in Austin, Texas.
Brandon Bell | Getty Images News | 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
Dow Jones index continues to fall
this Dow Jones Industrial Average Down 0.25% Eighth consecutive day of lossesthe longest 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 index Down 0.12%. French CAC 40 Moody’s ratings fell 0.71% on Saturday Downgrade The country’s credit score improved from Aa2 to Aa3.
Correction: NVIDIA
NVIDIA Shares fell 1.7% to close at $132 on Monday. That’s about 11% below November’s closing high of $148.88, 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 push forward.
clock ticking
on Monday, TikTok files challenge to U.S. Supreme Court consider appeals against its blocking law This can effectively Ban the app in the country January 19th. On the same day, TikTok executive Joe Zhou met with U.S. President-elect Donald Trump at his Mar-a-Lago estate, NBC News confirmed.
Son shines in America
During a visit to Trump’s Mar-a-Lago resort on Monday, Softbank CEO Masayoshi Son announced U.S. investment of $100 billion 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. But if a rate cut does occur, the Fed “will face the risk of a market collapse,” which could ultimately lead to a decline in the stock market Pullback from highsEd Yardeni, president of Yardeni Research, told CNBC.
bottom line
Playing the stock market feels like playing a Mario Kart game.
(For those unfamiliar with the joys 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 investigation According to Chinese regulators, there aren’t any other major obstacles in 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’s stock price accelerated sharply on the back of strong performances on Friday and Monday. Fourth quarter earnings report and Banks raise price targets.
“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.
