Dow jumps 300 points as investors turn away from chip stocks like Nvidia: live updates

Nvidia shares fell nearly 6% on Monday, building on a nearly 4% decline from last week that ended eight straight weeks of gains.

With Monday’s intraday losses, the chipmaker is about 10% below its closing high and more than 15% off its intraday high from earlier this month.

The stock is on pace for its worst day since April.

Jonathan Krinsky, technical strategist at BTIG, said in a note to clients on Sunday that Nvidia was trading about 100% above its 200-day moving average last week, the widest deviation for a market leader company since 1990.

The stock that came closest to this indicator was Cisco Systems, near the peak of the dot-com bubble, according to BTIG.

Cocoa is down almost 11% to a low of $7,901 per tonne. This is the product’s lowest level since May 27, when it traded at $7,869. Prices have come under pressure due to concerns that the second quarter global cocoa demand reports, due to be released next month, indicate record prices leading to demand destruction.

Since the start of the year, cocoa is still up 88.4%, which corresponds to its best year since 1980.

—Hakyung Kim, Gina Francolla

The S&P 500 was little changed at the start of Monday’s trading session.

The general market index fell less than 0.1%.

Meanwhile, the Dow Jones Industrial Average added 0.2% and the tech-heavy Nasdaq Composite fell 0.2%.

-Hakyung Kim

Chicago Federal Reserve President Austan Goolsbee said Monday that lower inflation figures would raise questions about whether interest rates are too high.

“If we get more months, like what we just saw last month on inflation, coupled with a slowdown in conditions in some other sectors of the real economy, then we will have to start asking ourselves whether we should stay as restrictive as we are. “I have been,” Goolsbee said on CNBC’s “Squawk Box.”

Although he would not commit to when he believes rate cuts would be appropriate, Goolsbee notes that he is “hopeful” that the inflation rate will return to the Fed’s 2% target. .

Goolsbee is not voting on the Federal Interest Rate Setting Committee this year.

—Jeff Cox

The lack of market volatility on Wall Street is linked to seasonality, 2024 election uncertainty as well as a significant amount of liquidity on hold, according to Stephen Suttmeier, chief technical equity strategist at Bank of America.

“I think the market continues to accelerate because there aren’t enough people who agree with it,” CNBC’s Suttmeier told CNBC’s “Squawkbox” on Monday. “We’ve remained overbought…and people hate chasing overbought markets, and I think that’s why overbought markets continue to rise.”

Suttmeier noted that the S&P 500 could reach the 5,600 level in a possible rally, and also said the benchmark index could climb as much as 20% in 2024.

—Brian Evans

Here are some of the stocks that made notable moves before the bell:

• ResMed — Medical device stocks fell 11.8% following last week’s announcement that Eli Lilly’s weight-loss drug tirzepatide reduced the severity of obstructive sleep apnea. Meanwhile, Eli Lilly rose about 1%.
• Carrier Global — Heating and ventilation stock rose 2.3% on the heels of an upgrade from Citi to buy from neutral.
• Anheuser-Busch InBev — Shares of the brewing company rose nearly 3% following an upgrade at UBS to buy from neutral.

See the full list here.

-Alex Harring

European Union regulators said Monday that Apple was breaking new technology rules because it did not allow App Store customers to be steered to third-party alternatives. Specifically, they said Apple was violating the new Digital Markets Act because App Store rules “prevent app developers from freely directing consumers to alternative channels for offers and content.” .

To be sure, shares rose slightly premarket, even after the news.

—Fred Imbert

RXO shares rose more than 11% after the trucking company announced it would acquire Coyote Logistics from UPS for more than $1 billion. The deal is expected to be finalized by the end of the year.

“This acquisition will provide RXO with both immediate and long-term opportunities for revenue and profit growth and will generate significant returns for shareholders,” RXO Chief Executive Officer Drew Wilkerson said in a statement.

Bitcoin fell more than 4% on Monday in a sudden decline, pushing its June losses to 9%. Despite these declines, the digital currency remains higher by more than 44% for the year.

European stocks started the new trading week in mixed territory on Monday, as investors await new economic data and interest rate decisions from the region.

The Stoxx 600 index was flat at 0.01% at the open, with sectors and major exchanges trading in opposite directions.

Britain’s FTSE index fell 0.04% to 8,235, Germany’s DAX rose 0.21% to 18,202, France’s CAC 40 rose 0.16% to 7,640 and Italy’s FTSE MIB increased by 0.5% to 33,475.

The S&P 500 has gone 377 days without a 2.05% decline. This is the longest run for the benchmark index since the Great Financial Crisis, according to FactSet data compiled by CNBC.

The index has also not seen a gain of at least 2.15% during this period.