CNBC Daily Open: Nvidia’s ‘mic drop moment’

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Wall Street Rise
Stocks rose After Federal Reserve Chairman Jerome Powell said,It’s timeTo lower interest rates. Dow Jones Industrial Average Jumped 462 points, while Nasdaq Composite And the Standard & Poor’s 500 US stock indices rose 1.47% and 1.15%, respectively. For the week, the Dow Jones rose 1.3%, the Nasdaq 1.4% and the S&P 500 1.45%. Meanwhile, the yield on 10-year US bonds rose 1.3% and 1.15%, respectively. The treasury slide while Oil prices in the United States Oil prices rose more than 2% to return to above $74 a barrel.

“It’s time”
In the wake of Powell Signal of imminent interest rate cutMarket interest has shifted to Timing and extent of reductionTraders are currently pricing in a quarter-point cut in September, with expectations increasingly for a more aggressive half-point cut. The prospect of a larger cut is gaining momentum, especially if the August jobs report reverses the weakness seen in July. As the Fed’s mid-September meeting approaches, CNBC’s Jeff Cox takes a look at the key factors that could influence interest rates. Economic indicators that may influence the final decision.

Back empty
BoeingStarliner The capsule will return. From the International Space Station without astronauts. NASA Astronauts Butch Wilmore and Suni Williams will take over instead. Return via SpaceX Dragon spacecraftNASA has decided to extend their stay on the International Space Station by about six months. The decision came after problems with the Starliner’s propulsion system during crew flight testing. “We want to further understand the root causes and design improvements so that Boeing’s Starliner will serve as a critical part of our confirmed crew arrival at the International Space Station,” said NASA Administrator Bill Nelson. The setback could threaten Boeing’s participation in NASA’s Commercial Crew Program, which has already absorbed Losses of over $1.5 billion.

Defending the activist
Intel Works with Morgan Stanley and other advisors to Defending against potential activist investors As it struggles to compete with rivals like Nvidia, Intel is cutting 15,000 jobs as part of a $10 billion cost-cutting program as Chief Executive Pat Gelsinger tries to turn around the chipmaker. Morgan Stanley has previously worked with Intel, including on the separation of Intel from Nvidia. Mobiley In 2022. The company’s difficulties stem from missing key market trends, including the smartphone boom and the current rise of artificial intelligence.

Export Control List
China strongly opposes US decision WASHINGTON – The United States announced today that it has added 42 Chinese companies to an export control list over their alleged ties to the Russian military. The United States also added 63 Russian companies and 18 companies from other countries for sending U.S. electronics to Russian military-linked entities that have produced thousands of Shahed-136 drones for use against Ukraine. China’s Commerce Ministry said the decision disrupts international trade and vowed that Beijing would protect the rights of Chinese companies.

[PRO] Fed Rate Cut Trading
As the Fed prepares to cut interest rates, the Evercore ISI highlights Few regional banks are ready to excelThese banks are actively reducing asset sensitivity through strategic balance sheet adjustments, positioning them to succeed in a low interest rate environment.

“That will be it” microphone drop moment“For Nvidia“Powell and Jackson Hole — they’re very important — but the market, what it’s going to do for the rest of the year and I would argue it’s going to do in 2025, starts with these Nvidia earnings,” Wedbush’s Dan Ives told CNBC’s Worldwide Exchange.

On Wednesday, Nvidia, the undisputed leader in artificial intelligence, will report its second-quarter earnings after the market closes. The stock is up 161% this year, despite falling to a low of $90.69 on Aug. 5 as markets capitulated on economic concerns.

Wall Street Remains Optimistic on NvidiaAs CNBC’s Jesse Pound reports, the options market is Betting that Nvidia will get a boost from its earnings Enthusiasm for the stock appears undiminished, even in light of delays in developing Blackwell’s chip — a project that CEO Jensen Hwang said cost the company $10 billion to develop.

“A delay of two or three months, I see as a question mark,” Ives said. “It doesn’t move the needle from a demand perspective.”

While Nvidia continues to dominate the AI ​​chip market, its rival Intel has fallen far behind. Not only has Intel failed to keep up with the smartphone revolution, it’s also lagging behind in the AI ​​race. Nvidia has surpassed Intel as the world’s largest chipmaker by revenue, with Intel now about 35 times smaller by market cap. Facing these challenges, Intel enlists help from Morgan Stanley and other advisors to advocate for potential active investors.

Wall Street ended the week with a strong performance.The Fed said Powell’s signal of a rate cut in the near future was reassuring, though the timing and magnitude remained contingent on upcoming economic data.

Former Chief Economist at PIMCO Paul McCauley expects a series of 25 basis point cuts. McCauley believes a 50 basis point rate cut could be more aggressive if the August jobs report, due on September 6, shows signs of weakness.

“Powell drew a line that we don’t want to see any further slowdown in the labor market — we’re there,” McCauley said on CNBC.screaming in the street“I don’t think that’s the case yet, but it’s clearly opened the door to starting the process of easing restrictions in advance.”

Powell’s dovish tone sends a strong signal to the market, said David Russell, head of global market strategy at TradeStation. “This keeps the tailwinds in the market through the end of the year, making it difficult to expect a retest of this month’s lows,” he added.

CNBC’s Sarah Min, Ruwan Goswami, Lisa Kaylai Han, Michelle Lohn, Michael Sheetz, Jesse Pound, Jeff Cox, Alex Haring, Yun Li, Pia Singh and Spencer Kimball contributed to this report.