NVIDIA CEO Jensen Huang spoke at a conference in San Jose, California, highlighting the latest developments in artificial intelligence. The Dow Jones Industrial Average experienced a significant drop of more than 600 points, attributed to Boeing’s performance. Despite reaching all-time highs, both the S&P 500 and Nasdaq Composite ended the day in negative territory. On the other hand, NVIDIA’s strong earnings and guidance did not have a positive impact on the overall market, with more than 400 S&P 500 stocks trading lower. Treasury returns increased as the Federal Reserve postponed rate cuts, while oil prices bounced back after a three-day decline. Nvidia’s stock soared by 11% following their earnings report, breaking above $1,000 for the first time and showing a 111% increase in value over the year.
Elon Musk expressed his disapproval of tariffs on Chinese electric vehicles imposed by President Joe Biden, which was significant news in the market. Boeing’s shares fell by 7.6% due to ongoing cash burn and production issues, causing concerns among investors. The United States Department of Justice filed a lawsuit against Live Nation, accusing the company of monopolistic practices, resulting in a 7.8% drop in their shares. Wall Street analysts are reviewing their price targets for NVIDIA after its strong performance, and the company is planning a stock split to make shares more accessible to retail investors.
The general sentiment in the market has been affected by concerns about inflation and the Federal Reserve’s stance on interest rate cuts. Traders are adjusting their expectations, with some speculating on a single rate cut in the future. Geopolitical concerns are also impacting investor confidence, with events like elections in the US and UK adding to market uncertainty.
Overall, investor sentiment is cautious as the market navigates through various challenges and uncertainties. The impact of these factors on different sectors and companies will continue to unfold as the market evolves.
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https://www.cnbc.com/2024/05/24/cnbc-daily-open-dow-sinks-600-points-nvidia-soars.html