On June 24, 2024, traders at the New York Stock Exchange experienced a boost in the Dow Jones Industrial Average by 260 points, fueled by a shift from technology to banking and energy stocks like Goldman Sachs and Chevron. Despite this, Nvidia shares took a dive, continuing a decline from the previous week. The S&P 500 and Nasdaq Composite struggled in negative territory, while investors eagerly awaited key inflation data. U.S. oil prices also rose amidst increasing tensions between Israel and Lebanon.
David Rubenstein from The Carlyle Group suggested that The Federal Reserve would likely avoid cutting rates before the November elections due to political considerations and potential criticism from former President Donald Trump. Bitcoin saw a drop in price below $60,000, its lowest level in over a month, with notable outflows from crypto investment products.
Novo Nordisk announced a $4.1 billion investment in a new manufacturing plant in North Carolina to enhance production of weight-loss drug Wegovy and diabetes treatment Ozempic. Shein, a fast fashion retailer, submitted for a public listing in London after facing obstacles in the U.S. related to labor practices and tax breaks.
Nvidia’s stock’s sharp incline has raised concerns about a potential peak in the AI sector, with chip stocks making historic moves. Despite the economic downturn, Ray Wang from Constellation Research remains bullish on Nvidia, seeing a potential 70% increase in stock price from Monday’s close. The S&P 500 has shown stability with no significant dips in over a year, reflecting investor caution in an “overbought” market according to Bank of America’s Stephen Suttmeier. He believes the index could rise by as much as 20% this year.
Overall, market fluctuations and investor sentiment are driven by various factors including geopolitical tensions, economic uncertainties, and shifting investor preferences between sectors. This summary captures the latest updates from the financial markets as reported by CNBC’s Daily Open newsletter.
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https://www.cnbc.com/amp/2024/06/25/cnbc-daily-open-dow-jumps-as-investors-rotate-out-of-tech-nvidia-sinks.html