Nasdaq rises despite Nvidia lag

This report is from today’s CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

A losing streak for the Dow
the Dow Jones Industrial Average He lost 0.25% to him For the eighth consecutive day of lossesthe longest streak since 2018. The Standard & Poor’s 500 It rose by 0.38% Nasdaq Composite It advanced 1.24% to close at a new high level. Pan-European Stokes 600 index Decreased by 0.12%. France CAC 40 It fell 0.71% after Moody’s on Saturday reduced The country’s credit score rose to Aa3 from Aa2.

Patch: Nvidia
Nvidia Shares fell 1.7% on Monday to close at $132. This represents about 11% of the closing high of $148.88 in November Nvidia is in the patch zone. However, Nvidia is still up 166% this year, and a correction does not necessarily indicate a sustainable downtrend. Moreover, other chipmakers, e.g Broadcomstill Power forward.

The clock is ticking
on monday, TikTok’s request from the US Supreme Court To consider her appeal to prevent a law This can be effective Ban the app in the country By January 19th. On the same day, Xu Ziqiu, CEO of TikTok, met with US President-elect Donald Trump at the latter’s Mar-a-Lago club, NBC News confirmed.

The son shines in the United States
During his visit on Monday to Trump’s residence in Mar-a-Lago. Softbank CEO Masayoshi Son A. announced Investments worth $100 billion in the United States Over the next four years. In the joint declaration with Trump, Sun also promised to create 100,000 jobs focused on artificial intelligence and related infrastructure.

(PRO) “Market Melt”
The market has Priced in The US Federal Reserve cut interest rates by approximately 25 basis points on Wednesday. But if interest rates are cut, the Fed “risks a market crash” which could ultimately cause stocks to collapse Undo the highsEd Yardeni, president of Yardeni Research, told CNBC:

The frustrating thing for Nvidia – and its shareholders – is that no matter what… investigation By a Chinese regulatory body, there were no other major bumps in the road: in fact, the fundamentals of the company are stable.

As Keith Lerner, co-chief investment officer at Truist, points out, Nvidia’s position in the semiconductor and AI industry remains unchanged. “You need Nvidia, and you need their chips for infrastructure,” Lerner said. “But I think what the market is also saying is that there are other beneficiaries beyond that.”

The fact that the Nasdaq Composite closed at another record high despite Nvidia’s decline is a sign of this shift to other semiconductor and AI-related stocks.

Even more telling is that Broadcom shares have hit the accelerator, surging forward on Friday and Monday on the back of a glowing wave. Fourth quarter earnings report and Increasing target prices by banks.

“Momentum has been driving this stock,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. “I don’t think momentum is going to kill it quite yet, but momentum is doing what momentum does, which is it’s going for the high end.”

The main difference between playing the stock market and playing Mario Kart is that the latter is a zero-sum game – you lose if your friend wins – but that’s not always the case with the former. You can own both Nvidia and Broadcom, and benefit regardless of who leads the race.

— CNBC’s Ari Levy, Samantha Sobin, Brian Evans and Jess Pound contributed to this report.