This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
What To Note Today
Nvidia Stock Slump As China Launches A Probe
The chipmaker’s shares were under pressure after a Chinese regulator announced that it was looking into Nvidia for potential violations of the nation’s antimonopoly law. The Chinese government announced on Monday that this probe was related to Nvidia’s 2020 acquisition of the Israeli company Mellanox and certain agreements signed during the transaction.
Police Detain A 26-Year-Old In Relation To The UnitedHealthcare CEO’s Fatal Gunshot
After police discovered Luigi Mangione, a University of Pennsylvania graduate, with a weapon, a silencer, a mask, and phony identification cards, they detained him as a “strong person of interest” in the murder of UnitedHealthcare CEO Brian Thompson. According to investigators, Mangione owned a suspected “ghost gun” that could fire 9 mm rounds and did not have a serial port.
November’s China Trade Falls Short Of Forecasts
In November, China’s imports and exports fell short of forecasts, raising concerns about the state of the Chinese economy. Compared to a year ago, exports increased 6.7% in U.S. dollars, much less than the 12.7% gain in the previous month, and fell short of estimates of an 8.5% increase. In contrast to experts’ expectations of a 0.3% increase, import data showed a surprising 3.9% fall.
Most Asian Markets Rise, Surpassing Wall Street
Most Asian markets increased, ignoring Wall Street’s lower overnight close. South Korea’s Kospi led gains with a 2.4% increase. Tech companies trailed as the S&P 500 and Nasdaq Composite declined from their all-time highs on Monday. The S&P lost 0.61%, and the tech-heavy Nasdaq fell 0.62%. The Dow Jones Industrial Average dropped 0.54%.
Mid-Cap Investments Might Be The Best Course Of Action In 2025
Due to their previous outperformance, mid-cap companies may be the ideal investment in 2025. Since mid-caps have higher-quality companies than small-caps and more promising growth prospects than large-caps, many investors anticipate more gains from them.
Bottom Line
Technology stocks have supported the remarkable increase in US stocks this year. However, they are not exempt from gravity’s laws.
Large technology stocks underperformed the overall market on Monday.
Bank of America downgraded AMD, and Oracle missed projections. Meanwhile, the day’s most significant news may have been about Nvidia, whose stock has risen an incredible 188% so far this year. In connection with the purchase of Mellanox and certain agreements made during the transaction, China’s State Administration for Market Regulation launched an inquiry into the chipmaker. Overnight, the revelation caused Nvidia’s stock to drop 2.6%.
According to the development, the global struggle for technological supremacy may get more intense as the year draws closer.
With the Biden administration placing several restrictions on semiconductor toolmakers on December 2, competition between the United States and China over chipmaking is intensifying.
Then, in retaliation, China banned the export of vital minerals like gallium. That same day, four of the nation’s leading trade associations warned Chinese businesses not to purchase U.S. chips because they were “no longer safe” and to purchase locally instead.
Prior trade conflicts have focused on industries like metals, agricultural goods, and vehicles. Could the next trade war be about chips, which have arguably impacted every aspect of the world, as the next Trump administration is poised to take a stronger position on China?
