Nvidia CEO Jensen Huang delivers the keynote address at the Consumer Electronics Show in Las Vegas, Nevada, on January 6, 2025.
Patrick T. Fallon | Af | Getty Images
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors the latest news wherever they are. Like what you see? You can subscribe Here.
What you need to know today
Further increases in S&P and Nasdaq
US stocks mostly increased on MondayWith S&P500 AND Nasdaq Composite climbing two days in a row. Artificial intelligence, baby Nvidia closed at a record high. Asia-Pacific markets on Tuesday essentially advanced. A rally in technology stocks has pushed up stock prices in Japan Nikkei 225 by over 2%, but in Hong Kong Hang Seng Index fell about 1.9% on news that U.S. authorities had added several companies to a list of “Chinese military companies.”
Tencent on the list of 'Chinese military companies'
Tencent Holdings Hong Kong-listed shares fell 7% on Tuesday after adding the company to a list of “Chinese military companies” by the US Department of Defense. Battery manufacturer CATwhich is part of the supply chain Ferry AND Teslahas also been added to the list. Tencent said in a statement that its inclusion on the list was a “clear mistake.”
Nippon Steel is still pursuing the transaction
American steel AND Nippon steel they announced on Monday that they did initiated two court proceedings against the decision of the administration of US President Joe Biden block acquisition of an American steel producer by a Japanese company for $14.9 billion. At press conference Nippon Steel President and CEO Eiji Hashimoto on Tuesday confirmed that his company would seek to conclude the transaction.
Nvidia presents new graphics chips that support artificial intelligence
On Monday at CES, the consumer electronics fair, Nvidia announced new graphics chips for PCs that use the same Blackwell architecture as the company's fastest AI processors for servers and data centers. Although Nvidia started out as a gaming chipmaker, Wall Street isn't as enthused about it as it is about the chipmaker's AI business.
Foxconn shows that artificial intelligence is still on top
Foxconn, operating as Hon Hai precision industrysaid in a statement Sunday that the company's fourth-quarter revenue, which grew 15% year-over-year, was the highest in the company's history for the period. Foxconn's numbers suggest that artificial intelligence is still on top, sending actions Nvidia and other global semiconductor companies.
(PRO) ETFs better than S&P
2024 was a banner year for US stocks. Passive investors who simply bought an exchange-traded fund tracking the S&P would receive a return of more than 20%. However, several actively managed funds launched in Europe have outperformed, including: one ETF returning 30%.
The most important thing
Semiconductor stocks jumped on Monday on good news about the artificial intelligence sector.
Foxconn reported record revenue in the fourth quarter, which was driven in part by the growth of cloud and networking products, including AI servers such as those designed by Nvidia.
Below is a great earnings report for the electronics manufacturer Microsoft on Friday he announced he was planning to do so will invest USD 80 billion in fiscal year 2025 to build data centers that can handle AI workloads.
These reports show that companies continue to invest heavily in artificial intelligence, and the peak has not yet been reached.
On such headwinds, Nvidia's stock jumped 3.4% – its third straight day of gains – to close at a record high of $149.43. The company's shares continued to gain in value during extended trading and are now above the $150 level.
More broadly, VanEck's Semiconductor ETF increased by over 3%.
These moves helped push the major averages forward. Technologically advanced Nasdaq Composite was the clear winner, gaining 1.24%, while S&P500 increased by 0.55%.
However, Dow Jones Industrial Average decreased by 0.06%. The index gave up earlier gains on reports that Trump may ease his import tariffs, which would benefit its blue-chip companies such as those in the consumer goods sector.
Despite these upbeat reports and positive market moves on Monday, the year ahead still looks turbulent.
“I think the market is quite bullish on technology right now, with earnings expected to grow 20% this year compared to the market's 12.8% … but valuations seem tight,” said Sam Stovall, chief investment strategist at CFRA Research .
The real test for AI, then, is whether companies can use it to increase revenues, rather than just driving up the price of picks and shovels in the sector.
— CNBC's Ryan Browne, Jordan Novet, Pia Singh and Tanaya Macheel contributed to this report.