Nvidia helped the S&P 500 Index and the Nasdaq Composite recover from a recent three-day slide. This rebound came as the Dow Jones Industrial Average experienced a nearly 300-point drop due to declines from Boeing, Goldman Sachs, and Home Depot. The 10-year Treasury bond yield remained stable in anticipation of key inflation data. Oil prices in the US fell by 1% as tensions in the Middle East and summer gasoline demand were monitored.
Volkswagen announced a plan to invest up to $5 billion in the electric vehicle startup Rivian, with an initial investment of $1 billion. This move follows Ford’s previous investment in Rivian, with Volkswagen becoming the second legacy automaker to enter into a partnership with the startup. Rivian saw its shares surge by 50% in after-hours trading as a result.
Sixteen Nobel Prize-winning economists signed a joint letter warning against the economic risks of former President Donald Trump serving a second term, particularly highlighting concerns about inflation. Meanwhile, Federal Reserve Governor Michelle Bowman expressed willingness to raise interest rates if inflation continues to rise.
In Australia, the S&P/ASX 200 saw a decline following unexpected inflation growth, raising the possibility of an interest rate hike. Chip-related stocks rose after Nvidia’s recovery, while Japanese markets experienced gains in exports. However, Hong Kong and mainland Chinese markets saw mixed results.
Artificial Intelligence is expected to drive growth in the global data center market, with increasing demand for data center space due to AI-powered GPUs. Boeing faced setbacks with its Starliner spacecraft experiencing helium leaks and thruster failures, while Airbus encountered supply chain issues due to engine manufacturer challenges. Airbus shares fell nearly 10% in response.
After a significant market capitalization drop, Nvidia shares showed a recovery, attracting leveraged bets from investors. Hedge funds have been rotating out of tech stocks, impacting the Nasdaq but supporting the Dow. Piper Sandler’s Craig W. Johnson predicted a potential market setback and consolidation in the coming weeks, with the S&P 500 potentially ending the year lower than its current level.
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https://www.cnbc.com/amp/2024/06/26/cnbc-daily-open-nvidia-rises-from-500-billion-slump.html
