Nvidia headquarters in Santa Clara, California, USA, Monday, June 5, 2023.
Malena Sloss | Bloomberg | Getty Images
This report is from today’s CNBC Daily Open, our new international market newsletter. The CNBC Daily Open gives investors everything they need to know, wherever they are. like what you see?can subscribe here.
technology rebound
U.S. stocks got off to a good start this week after a rally in semiconductor makers and tech stocks. European markets were mixed. The region’s Stoxx 600 index rose 0.15%, aided by a 4.35% rise in Phillips. However, the UK’s FTSE 100 fell 0.23% and Spain’s IBEX 35 fell 0.05%.
NVIDIA again
Nvidia shares soared 7% to $437.43 after Morgan Stanley released a memo reiterating its strengths. “NVIDIA remains our top pick against the backdrop of a massive shift in AI spending and a fairly exceptional supply-demand imbalance that will continue for the next few quarters,” the bank wrote.
Let’s go back to golf, not banking
Former Goldman Sachs CEO Lloyd Blankfein told CNBC he couldn’t imagine going back to his old company. Blankfein had disputed a New York Times article that “misquoted” him. “I never used the word ‘return,'” Blankfein said. “I think the days of working 100 hours a week are over.” He then ended the conversation and returned to his game of golf.
Russia’s “Goldilocks” for China?
Since Russia’s unprovoked invasion of Ukraine, China has become one of Russia’s most ardent supporters. But analysts say China wants to put Russia in a “Goldilocks” situation. In other words, Russia is not strong enough to challenge China, nor is China too weak to isolate itself from the West. But other observers argue that China is already risking its geopolitical capital to support Russia.
[PRO] Rate cut next year?
Goldman Sachs expects inflation to fall to levels that the Federal Reserve would be happy with by the first half of next year. Meanwhile, the Fed expects to begin cutting rates by the end of June 2024.
Tech stocks and semiconductor makers have helped the major U.S. stock indices bounce back from last week’s loss. The S&P 500 was up 0.58%, the Dow Jones Industrial Average was up 0.07% and the Nasdaq Composite was up 1.05%.
That’s just a single data point, but yesterday’s positive move in the market came from John Stoltzfuss, chief investment strategist at Oppenheimer, who said losses over the past two weeks did not signal the end of the bull market. reflect the claims. Rather, it was a “pause for refreshment,” a healthy adjustment to “oversold market conditions,” writes Stoltzfuss.
Still, stocks face pressure from rising bond yields. Two-year Treasuries yield just over 5%, while 10-year Treasuries yielded 4.2%, a pretty healthy return for a risk-free investment. “Bonds look relatively attractive, especially [relative to] where [we] It was just a few years ago,” said Kevin Gordon, senior investment strategist at Charles Schwab.
At the same time, higher yields mean lower prices. Ashish Shah, chief investment officer for public investments at Goldman Sachs Asset Management, told CNBC that “this creates an opportunity to buy bonds at real interest rates that have not been experienced in more than a decade.” Told.
But the battle between stocks and bonds seems like a pretty good deal. Recent data show inflation is receding and the U.S. economy is expanding faster than expected. Whatever choice an investor makes, it will be made in a healthy context, a rarity in the post-pandemic era.
Or, says Adam Crisafri, founder of market intelligence firm Vital Knowledge, “I don’t think investors should dive too deep into the rabbit hole of despair.”
