Wall Street Holds Steady: Nvidia Woes, Rising Oil and Gold Prices

9 Dec at 12:01 pm

1160 posts

Nvidia dips/ oil and gold rise/ Wall Street awaits inflation data/ Nvidia stock news/ inflation data/ Wall Street update/ oil prices rise/ gold prices climb/ NEW YORK/ J. Mansour/ Morning Edition/ Wall Street opened with mixed movements as Nvidia faced a 3% drop due to reports of a Chinese antitrust probe. The S&P 500 hovered near record highs, while oil and gold prices rose amid global uncertainties. Investors await key inflation data this week, which could influence a Federal Reserve rate cut.

FILE – A sign for a Nvidia building is shown in Santa Clara, Calif., May 31, 2023. A rebound for Nvidia on Tuesday, June 25, 2024, is helping keep U.S. indexes close to their records Tuesday. (AP Photo/Jeff Chiu, File)

Wall Street Update: Nvidia, Inflation Data, and Rising Commodities

Stock Movements: The S&P 500 dipped 0.1%, the Nasdaq fell 0.2%, and the Dow rose 0.1%.
Nvidia’s Impact: Nvidia stock dropped 3% after reports of a Chinese antitrust investigation, weighing heavily on the S&P 500.
Inflation Watch: Key U.S. inflation data this week could determine the Federal Reserve’s next rate cut.
Corporate Highlights: Interpublic Group surged 8.5% on a merger announcement, while Omnicom fell 7.5%. Macy’s gained 3.9% after a buyback call from an activist investor.
Oil and Gold Prices: Oil rose 1.4% to $68.17 per barrel, and gold climbed 1.1% as geopolitical concerns swirled around Syria.
Global Markets: Hong Kong’s Hang Seng jumped 2.8%, while South Korea’s Kospi fell 2.8% amid political tensions.

Wall Street Holds Steady: Nvidia Woes, Rising Oil and Gold Prices

Deep Look

Wall Street Holds Steady Amid Nvidia Concerns

Wall Street opened Monday with a mix of modest gains and losses as the S&P 500 and Nasdaq pulled back slightly from record highs, while the Dow Jones Industrial Average nudged upward. Nvidia, one of Wall Street’s most influential stocks due to its dominance in AI chip production, fell 3% following reports of a Chinese antitrust investigation.

The S&P 500 dipped 0.1%, the Nasdaq slid 0.2%, and the Dow rose 0.1%, gaining 62 points by mid-morning trading. Nvidia’s drop had an outsized impact due to its substantial weighting in the index, reminding investors of how single-company movements can sway broader markets.

Inflation Data Takes Center Stage

This week’s critical focus is on U.S. inflation reports. Economists anticipate consumer inflation data on Wednesday to remain steady, while wholesale inflation data on Thursday could show a slight uptick. These figures will heavily influence the Federal Reserve’s decision-making at its upcoming policy meeting.

The Federal Reserve has already cut interest rates twice this year from two-decade highs to stimulate a slowing labor market and align inflation with its 2% target. Wall Street widely expects another rate cut next week, fueling optimism that lower borrowing costs could sustain economic growth.

Corporate Moves: Mergers, Activism, and Listings

Interpublic Group and Omnicom: Shares of Interpublic Group soared 8.5% after Omnicom announced plans to acquire the company in an all-stock deal, combining $25.6 billion in revenue. Omnicom’s stock fell 7.5% on the news.
Macy’s: The retailer gained 3.9% after Barington Capital Group urged the company to implement a $2 billion stock buyback plan over the next three years.
Apollo Global Management and Workday: Both firms saw stock increases—3.5% and 6.9%, respectively—after news that they would join the S&P 500 index later this month.
Super Micro Computer: The company rose 3.5% after securing an extension to remain listed on the Nasdaq while it works to address delayed financial filings.

Commodities and Geopolitical Tensions

Geopolitical developments, including the overthrow of Syrian President Bashar Assad, sent ripples through commodity markets. U.S. crude oil prices climbed 1.4% to $68.17 per barrel, reflecting concerns about potential disruptions in the Middle East. Meanwhile, gold prices rose 1.1% to capitalize on uncertainty following Assad’s exile to Moscow.

Global Markets React

Global stock markets showed varied reactions on Monday. Hong Kong’s Hang Seng surged 2.8% after Chinese leaders signaled a shift toward “moderately loose” monetary policy, a significant change from their cautious stance in recent years. The meeting raised expectations for additional economic stimulus in the world’s second-largest economy.

In South Korea, the Kospi fell 2.8% amid political unrest after President Yoon Suk Yeol declared martial law last week during a budget dispute, only to reverse the decision hours later.