The headquarters of chip company Nvidia in Silicon Valley in February 2024.
Andrzej Sokollo | Image Unity 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. As you see? You can subscribe. Here.
What you need to know today.
The ‘Industrial Renaissance’ in America
KC CEO Mark Rowan said there is an “industrial renaissance” happening in America. Apollo Global Management. According to Rowan, this is bolstered by government spending on infrastructure and the semiconductor industry, under the Deflation Act. He said this has created “incredible demand for capital”, benefiting firms in the finance industry.
Morgan Stanley says Trump’s tariffs will slow growth.
US President-elect Donald Trump’s proposed universal tariffs of up to 20 per cent – and up to 100 per cent more on goods for China – would cause US economic growth to “drastically decelerate”. of Morgan Stanley Global Chief Economist Seth Carpenter Worse, he added, the economy would suffer a “huge negative shock” if all the tariffs were implemented at once.
Japan’s exports are rebounding from a multi-year low.
Japan’s exports rose 3.1 percent year-on-year in October, recovering from September’s 1.7 percent decline, a 43-month low. The October figure was higher than the 2.2 percent increase expected in a Reuters poll. Imports also rose more than forecast, pushing Japan’s trade deficit to 461.2 billion yen ($2.98 billion) from a revised September figure of 294.1 billion yen.
[PRO] Pink on Burberry
The decline of luxury goods has been hit Burberry Tough, its stock is down nearly 40% year to date. After the company’s CEO Joshua Shulman announced major plans to revamp the company, however, analysts and hedge fund managers are beginning to change their opinion of the company’s prospects.
The bottom line
“The conflict is escalating … I obviously expect some kind of immediate reaction, a knee-jerk reaction,” Pivotal Advisors CEO and CIO Tiffany McGee told CNBC.
However, this withdrawal in less risky assets was only temporary. Stocks briefly fell on the news, but most U.S. indexes closed higher on Tuesday. gave S&P 500 0.4% and Nasdaq Composite Although there was an increase of 1.04%. Dow Jones Industrial Average There was a decrease of 0.28 percent.
It seems that once investors digested these geopolitical events, they decided that other factors were more important to the markets. As McGhee pointed out, “This is the third year of the conflict and while initially we saw price increases…it’s kind of low,” he said.
One of these factors is Nvidia’s Earnings, out tomorrow. Anticipation for the report was so high that the chipmaker’s shares rose 4.9 percent.
In fact, the options market is saying that Nvidia’s earnings will move the S&P more than U.S. jobs data, inflation readings or even Federal Reserve meetings, wrote Gonzalo Assis, of Bank of America Securities Equity. Affiliate Analyst.
And investors won’t just be looking at Nvidia’s sales last quarter. They’ll want to know whether the chipmaker’s next-generation Blackwell chips can sustain — or even cement — Nvidia’s dominance in the artificial intelligence chip industry. Last month, CEO Jensen Huang called Blackwell’s demand “crazy,” but concern grew yesterday over a report that said the chip overheats in custom servers.
Past results are not indicative of future performance. This is something every investor knows. Considering Nvidia’s performance over the past two years, however, it’s hard to think of another asset that gives investors the same sense of security.
– CNBC’s Ruxandra Iordache, Katrina Bishop, Brian Evans, Samantha Subin and Pia Singh contributed to this report.
