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Dow sinks 600 points The Dow Jones Industrial Average suffered its worst day of the year, dropping over 600 points on Thursday.
Nvidia’s blockbuster earnings and guidance failed to prop up markets, with more than 400 stocks on the S&P 500 trading lower.
Treasury yields extended gains as the Fed delays rate cuts, while oil prices bounced back after a three-day decline.
Nvidia pops Shares of Nvidia soared as much as 11% after the AI chipmaker’s earnings that beat Wall Street’s estimates.
Boeing sinks Shares of Boeing dropped 7.6% after CFO Brian West said the company would continue to burn through cash this year.
Wall Street analysts are revising their price targets for Nvidia upwards after its blowout earnings and guidance.
What comes next for Nvidia is a 10-for-1 stock split; Post-split shares will start trading on June 10.
Nvidia shares are up more than 240% in the last 12 months.


The Dow drops 600 points.

Thursday was the worst day of the year for the Dow Jones Industrial Average, falling more than 600 points. The Dow’s decline was spearheaded by Boeing. The SandP 500 and the Nasdaq Composite both finished the day lower than when they started, despite earlier reaching intraday record highs. More than 400 stocks on the S&P 500 fell as a result of Nvidia’s spectacular earnings and guidance failing to support the markets. As the Fed postpones rate cuts, Treasury yields continued to rise, and oil prices recovered following a three-day drop.

Nvidia flashes.

When the AI chipmaker announced earnings that exceeded Wall Street forecasts, Nvidia’s stock price spiked by up to 11%. While the market for its AI accelerators is still strong, it also released some strong guidance. In intraday trading, shares broke through $1,000 for the first time and hit an all-time high of $1,063.20. This year, they have increased by roughly 111%.

Musk is against the China EV tariffs.

Elon Musk, the CEO of Tesla, stated that he opposes the tariffs that President Joe Biden imposed last week on Chinese electric vehicles. When asked about the tariffs by CNBC’s Karen Tso, Elon Musk responded, “Neither Tesla nor I asked for these.”. Without any tariffs or special treatment, Tesla is able to compete fairly well in the Chinese market. My stance is against tariffs. ****.

Boeing falls.

Boeing’s stock fell 7.6% following CFO Brian West’s statement that the business would continue to run out of cash this year. One significant revenue source—the delivery of new aircraft—won’t increase in the second quarter. Boeing is dealing with a number of production-related safety-related issues. The business spent close to $4 billion in cash during the first quarter, and according to West, the amount could be the same or “possibly a little worse” during the second.

You. S. file a lawsuit against Live Nation.

The US. S. Alleging monopolistic practices, the Department of Justice filed a lawsuit to dissolve Live Nation, the parent company of Ticketmaster, with the support of thirty states. Attorney General Merrick Garland said that Live Nation’s anticompetitive behavior hurts smaller promoters, fans, and artists by raising costs and decreasing opportunities. Live Nation refutes these “absurd” allegations, attributing the increase in ticket prices to things like production expenses and internet scalping. Shares of Live Nation dropped 7.8%.

[PRO] What will Nvidia do next?

Nvidia’s blowout earnings and guidance have Wall Street analysts raising their price targets for the company. A decrease in demand was anticipated by some as Amazon and Microsoft awaited Nvidia’s more potent AI chips. Investors may benefit more from Nvidia’s decision to split its stock.

Despite Nvidia’s spectacular earnings and outlook, Wall Street continued to decline. Nvidia remained resilient, with its shares ending the day above $1,000 and up 9% on the day, following assurances to investors that its sales of AI-enabling graphics chips were not a passing fad.

The stock split for Nvidia will occur on June 10 and will be a 10-for-1 split. Retail investors deterred by a share price of over $1,000 will be able to purchase them at approximately $100 thanks to a stock split. Over 240 percent of Nvidia’s share price has increased in the last 12 months.

Further details on the psychology of the move and the workings of the stock split mechanism are provided by CNBC’s Ryan Ermey.

The bullish outlook among traders dropped to 46 percent from 53 percent in the second quarter, according to the Charles Schwab Trader Sentiment Survey. So what’s freaking markets?

According to James Kostulias, head of Trading Services at Charles Schwab, “traders started the year feeling pretty confident that the economy was improving and Fed rate cuts would be quick to follow.”. “However, worries about inflation have increased dramatically. ****.

Several strategists had predicted that the Fed may lower interest rates at least three times this year as prices cooled, prior to the most recent minutes from the Federal Reserve meeting, which expressed concern about persistent inflation. It appears that traders are now only anticipating one cut, which could occur in September or November.

Investor focus is turning toward geopolitical issues as the first-quarter earnings season comes to an end.

“The Fed has made it quite evident that they will not be lowering interest rates, so there is no longer a “will they or won’t they” scenario to worry everyone. “Whether it’s elections or the two ongoing wars, we are going to start seeing a turn to some of this geopolitical stuff,” SimCorp’s managing director of applied research Melissa Brown stated.

Although occasions like the U.S. S. and while UK elections don’t always have an effect on the economy, Brown pointed out that they do raise uncertainty.

“Well, I’m going to wait and see how this plays out before I decide to commit more money to the market,” Brown said, “instead of saying, ‘I’m just going to buy now.

Contributors to this report included Hakyung Kim, Samantha Subin, Ryan Ermey, Jeff Cox, Sophie Kinderlin, Spencer Kimball, Ece Yildirim, Sarah Whitton, and Ryan Browne from CNBC.

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