This report is from today’s international market newsletter CNBC Daily Open. The CNBC Daily Open provides investors with everything they need to know, no matter where they are. Is it what you see? You can subscribe here.
What you need to know today
Russia warns of nuclear response
Russia’s Ministry of Defense announced that Ukraine used six US-made missiles to “attack facilities in the Bryansk region” of Russia. CNBC could not independently verify the report. Russian President Vladimir Putin on Tuesday updated the country’s nuclear doctrine, expanding the circumstances in which a nuclear response is justified.
Market recovers from turmoil
U.S. markets closed mostly higher on Tuesday after falling on news of rising geopolitical tensions. Supermicrocomputer’s stock price rose 31%. The pan-European Stoxx 600 fell 0.45% to close at a three-month low. Meanwhile, Eurostat confirmed that the euro zone’s annual inflation rate was 2% in October.
Qualcomm’s new billion dollar business
Qualcomm expects to generate an additional $22 billion in annual profits by 2029, the chipmaker announced at its investor day on Tuesday. Qualcomm said the PC chips it launched earlier this year will contribute $4 billion to sales. The move is part of Qualcomm Chief Executive Cristiano Amon’s efforts to diversify from Qualcomm’s smartphone chip business.
Stabilization of venture capital for Europe
European startups are expected to secure $45 billion in investment from venture capital firms by the end of 2024, according to VC firm Atomico. Although this is down from $47 billion last year, Atomico considers the European funding situation to be “stable”. Atomico predicted that the value of Europe’s entire technology ecosystem could reach $8 trillion by 2034.
(PRO) S&P has room to grow in 2025
Goldman Sachs expects the S&P 500 index to reach 6,500 in 2025 on the back of a strong U.S. economy and expanding corporate profits, implying an almost 10% rise from Tuesday’s close. The bank’s team of equity strategy analysts, led by David Kostin, recommends five strategies to take advantage of the S&P’s growth next year.
conclusion
Escalating geopolitical tensions have prompted investors to temporarily seek refuge in safe-haven assets such as gold and bonds. Russia reported that Ukraine had attacked it with US-made missiles and signaled it was prepared to respond with nuclear weapons.
Tiffany McGee, CEO and chief investment officer of Pivotal Advisors, told CNBC: “The conflict is escalating…I think we’re going to see some immediate reaction, some expedient reaction. It’s clear,” he said.
But the flight to lower-risk assets was only temporary. Stocks briefly fell on the news, but most U.S. indexes recovered and closed higher on Tuesday. The S&P 500 rose 0.4% and the Nasdaq Composite rose 1.04%, while the Dow Jones Industrial Average fell 0.28%.
Once investors digested these geopolitical events, they seemed to decide that other factors mattered more to the market. As McGee noted, “This is the third year of the conflict, and although initially we saw a spike in prices…it has leveled off to some extent,” she said .
One of those factors is Nvidia’s financial results, which will be released tomorrow. Expectations for this report were so high that the company’s stock price soared 4.9%.
In fact, in the options market, Nvidia’s profits will move the S&P more than the U.S. jobs report, inflation or even the Federal Reserve meeting, writes Bank of America Securities equity analyst Gonzalo Assis. are.
And investors aren’t just focused on Nvidia’s last quarter’s sales. They will want to know whether the chipmaker’s next generation of Blackwell chips can maintain or solidify Nvidia’s dominance in the artificial intelligence chip industry. CEO Jensen Huang said last month that Blackwell’s demand was “insane,” but yesterday raised concerns over reports that chips in custom servers were overheating. It went up.
Past results are not indicative of future performance. That’s something every investor knows. But considering Nvidia’s performance over the past two years, it’s hard to think of any other asset that would give investors similar peace of mind.
—CNBC’s Ruxandra Iordache, Katrina Bishop, Brian Evans, Samantha Subin and Pia Singh contributed to this report.
