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CNBC Daily Open: Tech firms in the spotlight

www.nbcphiladelphia.com 09-12-2024 08:18 3 Minutes reading
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 todayNvidia shares fall after China opens investigation Shares of artificial intelligence darling Nvidia were under pressure after a regulator in China said it was investigating the chipmaker over possible violations of the country’s antimonopoly law. This investigation was in relation to Nvidia’s 2020 acquisition of Israeli firm Mellanox and some agreements made during the acquisition, the Chinese government said Monday. Oracle falls after missing earnings forecast Oracle shares slid 7% in extended trading on Monday after the database software company reported fiscal second-quarter results that fell short of analysts’ estimates and issued revenue guidance that was weaker-than-expected. Revenue during the September quarter came in at $14.06 billion, compared to the $14.1 billion expected, while earnings per share was at $1.47, compared to forecasts of $1.48.26-year-old detained by police in connection with fatal shooting of UnitedHealthcare CEOUniversity of Pennsylvania graduate Luigi Mangione was detained by police as a “strong person of interest” in the killing of UnitedHealthcare CEO Brian Thompson after police found him carrying a pistol, a silencer, a mask and fake identification cards. Mangione had in his possession a suspected “ghost gun” — which lacks a serial member — capable of firing 9 mm rounds, authorities said.Markets retreat from record highs The S&P 500 and Nasdaq Composite pulled back from record highs Monday, with tech shares lagging. The tech-heavy Nasdaq shed 0.62%, while the S&P fell 0.61%. The Dow Jones Industrial Average declined by 0.54%. Over in Europe, the pan-European Stoxx 600 closed higher for an eighth straight session, marking its longest winning streak since May.[PRO] Investing in mid-caps may be the way to go in 2025Mid-cap stocks could be the sweet spot for investors in 2025, having been outperforming recently. Many investors expect further gains for mid-caps, which offer better quality businesses than small-caps, as well as stronger growth prospects than large-caps.The bottom lineTechnology stocks have underpinned the impressive rally in US stocks this year. But they are not immune from the laws of gravity.Monday’s session saw large technology stocks underperform the broader market. Oracle missed forecasts and AMD was downgraded by Bank of America. But perhaps the biggest news of the day concerned Nvidia, whose shares have surged an astounding 188% this year. China’s State Administration for Market Regulation opened an investigation into the chipmaker in relation to the acquisition of Mellanox and some agreements made during the acquisition. The news prompted Nvidia’s shares to fall 2.6% overnight. The development suggests that while the year is ending, the fight for tech dominance around the world may just be intensifying.Competition between the U.S. and China over chipmaking is rising, with the Biden administration on Dec. 2 announcing a slew of curbs targeting semiconductor toolmakers. China then retaliated by banning exports of critical minerals such as gallium, and on the same day, four of the country’s top industry associations said Chinese companies should be wary of buying U.S. chips as they were “no longer safe” and buy locally instead.Previous trade skirmishes have centered on areas such as metals, farm products, and automobiles. With a tougher stance on China expected from the incoming Trump administration, could the next trade war instead be focused around chips, which arguably have permeated every facet of our lives?— CNBC’s Samantha Subin contributed to this report.

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