A storm is brewing. 20% of oil supply at risk. Nvidia now 2nd biggest company
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US markets sold off on Monday, with investors battling two large headwinds. Bond yields rose to 4% for the first time since August, while Brent crude rose above $81 for the first time since August as well, after oil gained 3.7% overnight, rising 15% in five days. What's happening? We're almost one year on from the October 7 attacks, the US launched airstrikes on Houthi rebels, while exchanges between Hezbollah and Israel intensified. So storm clouds and a recipe of caution and potential pullbacks are hanging over markets. This is all while the US jobs report showed the US central bank may not need to go full throttle on cutting interest rates.
How are markets and investors reacting? So while investors throw caution to the wind, seriously processing what could happen if 20% of the world’s oil supply is choked off, they bought into oil stocks and sectors and defensive plays such as healthcare. At the same time, markets are now realizing another 0.5% Fed cut could not come, so broad equities fell, with the S&P500 and the Dow Jones falling about 1% each. That said, the bulls continued to buy into semiconductors, with Nvidia $NVIDIA (NVDA.US)$ once again becoming the second biggest company in the world.
Stocks to watch? Of course chips are in focus with Nvidia $NVIDIA (NVDA.US)$ rising 2.2% ahead of its three-day AI summit on October 7-9. The summit will bring AI and chips to the forefront of investors’ minds. Its conference is focused on how AI can tackle some of society’s biggest challenges in healthcare, cybersecurity, and manufacturing. Investors may also be betting Nvidia $NVIDIA (NVDA.US)$ could potentially overtake Apple $Apple (AAPL.US)$ if it gains just $300 billion in market value.
Super Micro Computer $Super Micro Computer (SMCI.US)$ shares surged 16% after selling 100,000 graphic processing units in the quarter and forecasting strong demand ahead.
Meanwhile, also in big tech, Elon Musk is expected to unveil the highly anticipated Tesla $Tesla (TSLA.US)$ Robotaxi on Thursday at Warner Bros. Studios (WBD) in Los Angeles. Thinking about electrification, all eyes are on lithium stocks after Rio Tinto $Rio Tinto (RIO.US)$ began talks to take over US producer Arcadium $Arcadium Lithium (ALTM.US)$ possibly signaling a lithium market rebound that could crack lithium out of its bear market and bring along a bunch of M&A activity.
The Australia sharemarket is trading 0.1% higher on Tuesday (as at Midday) at 8,207 points and is up 8.13% so far this year. While macro eyes are on the RBA’s minutes from its September interest rate meeting and ears are on what the RBA Deputy Governor could say about potential rate cuts maybe next year.
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151453268 witso : We are a world full of
house behaviour and unaccountability pandering to minority agendas, farther from a green utopia than ever, they say war is great for economy’s but its no good if your dead. We are in a current battle with our employer over a few dollars and basic entitlements that wouldn’t even put us near the industry standard, we have suffered 8yrs of wage theft from FWC endorsed EBA’s , our crews have been stripped back to less than skeleton numbers and asked to do more, our employer has bought into chevrons race to the bottom contract tender merry go round and we have to work a second job in some cases to provide. Look on the bright side Chevron may receive a boost in the oil and gas price because countries want to kill each other and we will worry about our jobs because we have to take them to task over a few dollars. Altrad barrow island maintenance workers watch this space.