Nvidia H100 chips inside a server room at the Yotta Data Services Pvt. data center, in Navi Mumbai, India, on Thursday, March 14, 2024.
Dhiraj Singh| Bloomberg | Getty Images
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open gives investors access to everything they need to know, wherever they are. Like what you see? You can subscribe here.
What you need to know today
Nvidia shares fall after China opens investigation
Shares of artificial intelligence with Nvidia were under pressure after a regulator in China said it was investigating the chipmaker for possible violations of the country's antimonopoly law. This investigation was related to Nvidia's 2020 acquisition of Israeli company Mellanox and some agreements made during the acquisition, the Chinese government said on Monday.
Oracle Falls After Missing Earnings Forecast
Oracle shares slipped 7% in extended trading Monday after the database software company second quarter fiscal results that fell short of analyst estimates and issued revenue guidance that was weaker than expected. Revenue in the September quarter came in at $14.06 billion, versus the $14.1 billion expected, and earnings per share were $1.47, versus forecasts of $1.48.
26-year-old arrested by police in connection with fatal shooting of UnitedHealthcare CEO
A graduate of the University of Pennsylvania, Luigi Mangione detained by the police as a “strong person interested” in killing United Health Care CEO Brian Thomson after police found him carrying a pistol, silencer, mask and fake identification cards. Mangione had in his possession a “ghost gun” — which does not have a linear ball — capable of firing 9 mm rounds, authorities said.
Markets bounce back from highs
The S&P 500 and Nasdaq Composite withdrawn from the highest levels Monday, with technical shares going down. The tech-heavy Nasdaq shed 0.62%, while the S&P fell 0.61%. The Dow Jones industrial average changed so far +0.54% compared to yesterday. over in Europe, the pan-European Stoxx 600 closed higher for an eighth straight session, marking its longest winning streak since May.
(PRO) Investing in a mid-base may be the way to go in 2025
Mid-cap stocks could be the sweet spot for investors in 2025, has been performing better recently. Many investors expect more benefits for mid-caps, which offer better quality businesses than small-caps, as well as stronger growth opportunities than large-caps.
The bottom line
Technology stocks have underpinned the incredible rally in US stocks this year. But they are not exempt from the laws of gravity.
Monday's session saw major technology stocks underperform the broader market.
Oracle missed forecasts and AMD did downgraded by Bank of America. But perhaps the biggest news of the day concerned Nvidia, whose shares have risen a staggering 188% this year. China's State Administration for Market Regulation opened an investigation into the chip maker regarding the acquisition of Mellanox and some agreements made during the acquisition. The news caused Nvidia shares to fall 2.6% overnight.
The development indicates that, as the year comes to an end, the fight for technological leadership around the world may be intensifying.
Competition between the US and China over chipmaking is rising, with the Biden administration on December 2 announcing a series of curbs aimed at semiconductor device makers.
China then retaliated by banning the export of critical minerals such as gallium, and on the same day, four of the country's top business associations said Chinese companies should be wary of buying US chips because they were “no longer safe” and buy locally instead.
Previous trade divisions have focused on areas such as metals, farm products and automobiles. With a tougher stance on China expected from the incoming Trump administration, could the next trade war focus on chips, which could have permeated both sides of our lives?
— CNBC's Samantha Subin contributed to this report.
