CNBC Daily Open: Nvidia’s ‘drop-the-mic moment’

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

CNBC Daily Open: Nvidia’s ‘drop-the-mic moment’

Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading in New York on August 23, 2024. 

Angela Weiss | AFP | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed 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

Wall Street rally 

This is the hidden content, please

• Sign In
• or
• Sign Up

after Federal Reserve Chair Jerome Powell said the “

This is the hidden content, please

• Sign In
• or
• Sign Up

” to cut interest rates. The

This is the hidden content, please

• Sign In
• or
• Sign Up

jumped 462 points, while the

This is the hidden content, please

• Sign In
• or
• Sign Up

and the

This is the hidden content, please

• Sign In
• or
• Sign Up

climbed 1.47% and 1.15%, respectively. For the week, the Dow gained 1.3%, the Nasdaq 1.4% and the S&P 500 rose 1.45%. Meanwhile, the yield on the 10-year

This is the hidden content, please

• Sign In
• or
• Sign Up

slipped, while

This is the hidden content, please

• Sign In
• or
• Sign Up

rose more than 2% to move back above $74 a barrel. 

‘The time has come’Following Powell’s

This is the hidden content, please

• Sign In
• or
• Sign Up

, market attention has pivoted to the

This is the hidden content, please

• Sign In
• or
• Sign Up

. Traders currently anticipate a quarter-point cut in September, with rising expectations of a more aggressive half-point reduction. The likelihood of a larger cut is gaining traction, particularly if the August jobs report reflects the weakness seen in July’s figures. As the Fed’s mid-September meeting approaches, CNBC’s Jeff Cox cast an eye over the key

This is the hidden content, please

• Sign In
• or
• Sign Up

. 

Returning empty

This is the hidden content, please

• Sign In
• or
• Sign Up

‘s Starliner 

This is the hidden content, please

• Sign In
• or
• Sign Up

from the International Space Station without astronauts.

This is the hidden content, please

• Sign In
• or
• Sign Up

astronauts Butch Wilmore and Suni Williams will instead

This is the hidden content, please

• Sign In
• or
• Sign Up

, extending their stay on the ISS by about six months. The decision follows issues with Starliner’s propulsion system during its crew flight test. “We want to further understand the root causes and understand the design improvements so that the Boeing Starliner will serve as an important part of our assured crew access to the ISS,” NASA Administrator Bill Nelson said. The setback could threaten Boeing’s involvement with NASA’s commercial crew program, which has already absorbed

This is the hidden content, please

• Sign In
• or
• Sign Up

.

Activist defense 

This is the hidden content, please

• Sign In
• or
• Sign Up

is working with

This is the hidden content, please

• Sign In
• or
• Sign Up

and other advisors to

This is the hidden content, please

• Sign In
• or
• Sign Up

as it struggles to compete with rivals like Nvidia. Intel is cutting 15,000 jobs as part of a $10 billion cost-reduction program as CEO Pat Gelsinger attempts to turn the chip maker around. Morgan Stanley has previously worked with the Intel, including spinning off

This is the hidden content, please

• Sign In
• or
• Sign Up

in 2022. The company’s difficulties stem from missing key market trends, including the smartphone ***** and the current AI surge.

Export control list

This is the hidden content, please

• Sign In
• or
• Sign Up

to add 42 ******** firms to its export control list due to alleged ties to the Russian military. The ******* States also added 63 Russian companies and 18 from other countries for sending U.S. electronics to Russian military-linked entities that produced thousands of Shahed-136 drones for use against Ukraine. China’s Ministry of Commerce said the decision disrupts international trade, pledging that Beijing would protect the rights of ******** companies.

[PRO] Trading Fed rate cutsAs the Fed prepares for interest rate cuts, Evercore ISI highlights

This is the hidden content, please

• Sign In
• or
• Sign Up

. These banks are actively reducing asset sensitivity through strategic balance sheet adjustments, positioning them for success in a lower-rate environment.

The bottom line

“This is going to be a

This is the hidden content, please

• Sign In
• or
• Sign Up

” for

This is the hidden content, please

• Sign In
• or
• Sign Up

, Wedbush’s Dan Ives told CNBC’s Worldwide Exchange. “Powell, Jackson ***** — so important — but the market, what it’s going to do for the rest of the year and I could argue 2025, it starts with this Nvidia earnings.” 

On Wednesday, Nvidia — the undisputed leader in AI — will deliver its second-quarter earnings after the closing bell. The stock has soared 161% this year, despite plunging to a low of $90.69 on Aug.  5, as markets capitulated on economic concerns.

This is the hidden content, please

• Sign In
• or
• Sign Up

. As CNBC’s Jesse Pound reports, the options market is

This is the hidden content, please

• Sign In
• or
• Sign Up

report. Enthusiasm for the stock appears undiminished, even in light of the delay for its Blackwell chip — a project CEO Jensen Huang said cost the company $10 billion to develop.

“A delay of two to three months, I view that as a sort of an asterisk. This is not moving the needle in terms of a demand perspective,” Ives said. 

As footnotes go, while Nvidia continues to dominate the AI chip market, its competitor Intel has fallen significantly behind. Not only did Intel miss the smartphone revolution, but it’s also lagging in the AI race. Nvidia has overtaken Intel as the largest chipmaker by revenue, with Intel now roughly 35 times smaller in market capitalization. Facing these challenges,

This is the hidden content, please

• Sign In
• or
• Sign Up

and other advisors to fend off potential activist investors.

This is the hidden content, please

• Sign In
• or
• Sign Up

, reassured by Powell’s signal for imminent rate cuts, though the timing and scale remain contingent on upcoming economic data.

Former PIMCO chief economist

This is the hidden content, please

• Sign In
• or
• Sign Up

at the next several FOMC meetings. McCulley also believes a more aggressive 50-basis-point cut could be implemented if August’s jobs report, due on Sept. 6, shows signs of weakeness.

Powell “drew a line in that we don’t want to see further deceleration in the labor market — we’re there,” McCulley said on CNBC’s “

This is the hidden content, please

• Sign In
• or
• Sign Up

.” “I don’t think that’s the base case yet, but clearly he’s opened the door for front-loading of the easing process.”

Powell’s dovish tone also sends a strong signal to the market, according to David Russell, global head of market strategy at TradeStation. “This keeps a tailwind at the market’s back into year-end, making it ******* to expect a retest of this month’s lows,” he said.

— CNBC’s Sarah Min, Rohan Goswami, Lisa Kailai Han, Michele Luhn, Michael Sheetz, Jesse Pound, Jeff Cox, Alex Harring, Yun Li, Pia Singh and Spencer Kimball contributed to this report.

This is the hidden content, please

• Sign In
• or
• Sign Up

#CNBC #Daily #Open #Nvidias #dropthemic #moment

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

For verified travel tips and real support, visit: https://hopzone.eu/