Breakfast | Star fund manager says no need to worry about NVIDIA's high valuation, Volkswagen bets $5 billion on Rivian
US stocks rebounded, with NVIDIA surging nearly 7%, returning to the $3 trillion club. OpenAI delays the launch of its voice assistant to address security issues. Volkswagen plans to invest $5 billion in Rivian and collaborate to establish a joint venture company for the next generation of electric vehicles. Bank of America stated that last week, hedge funds and institutional clients sold US stocks, while retail investors bought in
Good morning! A great day starts with making money.
Overnight Morning Market
Recently, several Federal Reserve officials have stated that they need to wait for "some time" and have more data on inflation cooling before discussing rate cuts. Mary Daly, President of the Federal Reserve Bank of San Francisco and a voting member this year, refused to cut rates preemptively to combat deteriorating labor market conditions and economic slowdown. The S&P 500, Nasdaq, and Nasdaq 100 all halted their three-day decline.
Meta rose 2.3% to a more than ten-week high, Google Class A rose 2.7% to hit a new historical high, Amazon rose 0.4% approaching a six-week high, Tesla rose 2.6%, Netflix rose 0.5%; Apple rose 0.5% for the second consecutive day, with a market value of $3.21 trillion ranking second in the U.S. stock market; Microsoft rose 0.7% to hit a new historical high, with a market value of $3.35 trillion as the largest in the U.S. stock market.
NVIDIA rose 6.8%, ending a three-day decline to move away from a three-week low, with a market value back above $3.10 trillion ranking third in the U.S. stock market, and NVIDIA's double long ETF rose nearly 14%.
Blue Chips and Hot Stocks
Prominent investors support NVIDIA, believing there is no need to worry about high valuations
Steve Eisman, Senior Portfolio Manager at Neuberger Berman, believes that NVIDIA losing $43 billion in market value in three days is not a big deal. "If you look at NVIDIA's technical chart, you can hardly see any pullback. This doesn't mean anything."
Buffett reduced his holdings in BYD Company, with the stake dropping from 6.18% to 5.99%.
Volkswagen plans to invest $5 billion in Rivian and establish a joint venture company with it for the next generation of electric vehicles. Rivian's after-hours gain expanded to 50%.
Exxon Mobil executives: The company has no plans to develop its own direct lithium extraction technology and is considering expanding lithium battery projects globally.
Chips and Artificial Intelligence
OpenAI delays the release of ChatGPT's voice assistant feature
OpenAI's delay is to ensure that it can handle requests from millions of users safely and effectively. "We are improving the model's ability to detect and reject certain content."
Baichuan Intelligence: Offers 10 million tokens to new users of OpenAI and announces free use of the Assistants API.
Cryptocurrency
SEC Chairman Gensler: The process of approving an Ethereum ETF is progressing smoothly, refusing to comment on the timetable.
Macro: Taking You Around the World
Federal Reserve Board Governor Bowman: If inflation remains stagnant, they are still willing to raise rates. Still believe there will be no rate cuts in 2024.
Federal Reserve's Powell: Sustaining stable monthly employment growth may require 200,000 people. Inflation for 3 and 6 months will continue to decline, cooling faster next year, and a rate cut will be appropriate at some point.
Bank of America: Hedge funds and institutional clients sell U.S. stocks, while retail investors buy
Bank of America clients net sold U.S. stocks last week for the first time in a month, with outflows mainly from hedge funds and institutional funds, while retail investors bought. Last week, retail investors were the only net buyers, in addition to corporate buybacks, which were bought for the fourth consecutive week. In terms of sectors, technology and communication services led fund inflows for the third consecutive week, while financial stocks saw the largest outflows for the second consecutive weekNatixis: As the Fed rate cut approaches, the S&P 500 index will maintain a "buy on dips" mode
As the Fed gradually approaches a rate cut, investors may continue to flock into US stocks when signs of a pullback appear, and it is expected that the Fed's easing cycle will start in early 2025. Despite the S&P 500 index having risen by 15% year-to-date, the index is expected to "maintain a buy on dips mode, with the next uptrend approaching the Fed's rate cut cycle