📈 Nvidia Dethrones Apple

Good morning.

⚡ The Fast Five → TSMC stops chips for China, Sony raises guidance, Warner Bros. swings to profit, Pinterest plunges, Nvidia world's most valuable

🔎 Market Trends → Stocks close mostly higher after Fed cuts interest rates; Stock futures slip as Wall Street tries to extend post-election rally

And now…

⏱️ Your 5-minute briefing for Friday, November 8, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Climb Higher as Fed Cuts Rates Amid Political Shift

Nasdaq jumped 1.5% to a record 19,269.5, while the S&P 500 edged up 0.7% to 5,973.1. The Dow closed flat at 43,729.3 after reaching a high on Wednesday.

The Big Picture:

With the Fed lowering rates by 25 basis points and a Trump presidency returning to the White House, markets are riding a wave of optimism. Investors welcomed the Fed’s decision, pushing both the Nasdaq and S&P 500 to new highs, even as financial stocks faltered.

The Federal Open Market Committee (FOMC) dropped its benchmark lending rate to a range of 4.50% to 4.75%, indicating a cautious but responsive approach to evolving economic conditions.

WTI crude inched up 0.5% to $72.1 per barrel, signaling stable energy demand amidst market volatility. Gold rose 1.5% to $2,715.30 per ounce, while silver gained 2.5% to $32.11, as investors hedge against uncertainty.

Market Movers:

• Warner Bros. Discovery (WBD) spiked 11.8% on news of strong subscriber growth and unexpected net income, positioning it as the top performer in both the Nasdaq and S&P 500.

• Viatris (VTRS) surged 13.5% after reporting a third-quarter beat, reinforcing investor confidence in its business turnaround.

• Match Group (MTCH) took a 17.9% hit following a weak fourth-quarter revenue outlook, highlighting concerns over its growth trajectory.

• MercadoLibre (MELI) saw shares fall 16.2% after a third-quarter earnings miss, underscoring the competitive pressures in Latin American e-commerce.

What They’re Saying:

Fed Chair Jerome Powell affirmed, "If inflation doesn’t approach our 2% target, we’ll move cautiously; but we’re ready to adjust faster if the labor market stumbles." Powell also clarified he has no plans to step down under Trump’s administration, which he notes lacks the authority to oust Fed officials.

WHAT WE’RE WATCHING
Events

• Wed. Nov. 13: Bureau of Labor Statistics - Consumer Price Index - 8:30am

• Why You Should Care: Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

Earnings Reports

• Today: Telus, NRG Energy, Ubiquiti, Paramount Global, Lamar

• Monday: Live Nation, Grab Holdings, Monday.com, Aramark

MARKET BRIEF
Leading News

Nvidia Tops Apple as World’s Most Valuable Company

Why it matters:

Nvidia (NVDA) is now the world's most valuable company, leaping ahead of Apple (AAPL) with a market cap of $3.57 trillion. This milestone highlights AI’s explosive growth and Nvidia’s central role in driving the tech’s future.

The big picture:

Nvidia’s journey from a GPU manufacturer to an AI powerhouse has been nothing short of meteoric. Originally known for gaming graphics cards, Nvidia expanded its GPUs into AI applications, becoming the go-to supplier for AI-driven computing. Now, demand for its AI chips is set to drive Nvidia’s continued dominance.

The upcoming release of Nvidia’s Blackwell architecture—an advanced chip design aimed at maximizing AI efficiency—could further solidify its position. This innovation comes as the general AI market, currently valued at $200 billion, is projected to hit $1 trillion by 2030.

But Nvidia’s climb isn’t without risks. Its stock has already surged over 190% this year and 2,700% in five years—a pace that could trigger a cooling period. Any hiccups in Blackwell’s launch or signs of slowed growth might open a path for Apple to reclaim the top spot.

Go deeper:

• Nvidia's Nov. 20 earnings report. Investors will scrutinize revenue growth; Nvidia forecasts double-digit gains, impressive yet slower than previous quarters.

• Blackwell launch. With production underway, Nvidia expects significant demand, potentially boosting Q4 earnings further.

• Nvidia’s recent entry into the Dow Jones underscores its expanding influence and investor confidence, marking a significant shift for tech in traditional indices.

What they're saying:

"Nvidia's rise reflects the market's unyielding belief in AI as the future, with Nvidia leading the charge," said a tech analyst.

The bottom line:

Nvidia’s massive gains are a sign of AI’s explosive growth, but investors should brace for potential volatility. For those with a long-term view, Nvidia remains a solid hold as it powers AI’s future.

Headlines

• TSMC allegedly to stop making AI chips for China (link)

• Sony raises guidance on gaming strength, quarterly operating profit beats estimates (link)

• Warner Bros. Discovery Swings to Quarterly Profit on Strong Streaming Growth (link)

• Lucid reports better-than-expected Q3 results (link)

• Pinterest stock plunges following weak Q4 revenue guidance (link)

• Airbnb posts mixed quarterly results, shares fall (link)

• How Samsung fell behind in the AI boom leading to a $126 billion wipeout (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin ETFs See Record $1.3B Inflows on Trump Win, Fed Rate Cuts (link)

• Ethereum Foundation reports crypto holdings of $788M, tightens conflict of interest policy for staff members (link)

• Solana climbs above $200, bitcoin hits new high amid extended post-election rally (link)

DAILY SHARE
On the Socials