November 20, 2024 at the Nvidia office in Austin, Texas.
Brandon Bell | Getty Images News | Getty Images
This report is from today's international market newsletter CNBC Daily Open. The CNBC Daily Open provides investors with everything they need to know, no matter where they are. Is it what you see? You can subscribe here.
What you need to know today
Dow is on a losing streak
of Dow Jones Industrial Average It fell 0.25%, marking the eighth consecutive day of declines and the longest since 2018. S&P500 Increased by 0.38%, Nasdaq Composite The stock rose 1.24% to close at a new high. pan-european Stocks 600 The index fell by 0.12%. french CAC40 It fell 0.71% after Moody's downgraded the country's credit score from 'Aa2' to 'Aa3' on Saturday.
Correction: Nvidia
Nvidia Shares fell 1.7% on Monday, closing at $132. This is about 11% off its November closing high of $148.88, putting Nvidia in correction territory. That said, Nvidia is still up 166% this year, so a correction doesn't necessarily indicate a continued downward trend. In addition, other chip manufacturers broadcomstill pushing forward.
the clock is ticking
On Monday, TikTok asked the U.S. Supreme Court to consider an appeal by Jan. 19 to block legislation that could effectively ban the app in the country. On the same day, TikTok CEO Shou Zi Chew met with US President-elect Donald Trump at the US Supreme Court. The latter's Mar-a-Lago club confirmed to NBC News.
My son will shine in America
During a visit to President Trump's Mar-a-Lago mansion on Monday, Softbank CEO Masayoshi Son announced that the company will invest $100 billion in the United States over the next four years. In a joint announcement with Trump, Son pledged to create 100,000 jobs focused on artificial intelligence and related infrastructure.
[PRO] “Market Meltup”
In the market price is set The US Federal Reserve is more or less certain to cut interest rates by 25 basis points on Wednesday. But if the Fed cuts rates, “there is a risk of a market meltdown” that could ultimately cause stocks to fall back from their highs, Ed Yardeni, president of Yardeni Research, told CNBC. Ta.
conclusion
Playing the stock market can feel like a game of Mario Kart.
(For those who haven't heard of Mario Kart yet, it's a racing game featuring Nintendo's Mario and his friends.)
One moment you're comfortably in the lead, and the next you stumble around a bend and someone behind you speeds up and passes you.
Nvidia is currently in such an enviable position.
Frustratingly for Nvidia and its shareholders; According to an investigation by Chinese regulators, there are no other major issues and, in fact, the company's fundamentals are stable.
As Keith Lerner, Trust's co-chief investment officer, points out, Nvidia's position in the semiconductor and artificial intelligence industries remains unchanged. “We need Nvidia, and we need chips for the infrastructure,” Lerner said. “But I think what the market is saying is that there are other beneficiaries as well.”
The fact that the Nasdaq Composite closed at a new record despite Nvidia's decline signals a rotation into other semiconductor and AI stocks.
Most notably, Broadcom stock hit the gas pedal, surging on Friday and Monday on the back of strong fourth-quarter results and banks raising their price targets.
“Momentum has been pushing this stock up,” said Kim Forrest, chief investment officer at Bork Capital Partners. “I don't think momentum will crush this stock yet, but what does momentum do? I'm asking for it.''
The main difference between playing the stock market and playing Mario Kart is that the latter is a zero-sum game (if your friends win, you lose), whereas the former is not necessarily the case. You can own both Nvidia and Broadcom and benefit regardless of who is the leader in the race.
—CNBC's Ari Levy, Samantha Subin, Brian Evans and Jess Pound contributed to this report.
