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Market Moves Yesterday
S&P 500 @ 6,052.85 ( ⬇️ 0.61%)
Nasdaq Composite @ 19,736.69 ( ⬇️ 0.62%)
Bitcoin @ $97,594.22 ( ⬇️ 1.08%)
Hey Scoopers,
Happy Tuesday! Here’s what we’re covering today 👇
👉 Nvidia vs. China
👉 Oracle disappoints Wall Street
👉 Google unveils quantum chip
So, let’s go 🚀
Market Wrap
The S&P 500 and Nasdaq Composite pulled back from record highs on Monday, with tech shares struggling and investors looking ahead to key inflation data due this week.
Bitcoin also retreated after reaching the historic $100,000 milestone last week. The move suggests investors may be reducing their risk exposure in digital assets.
The pullback follows strong performances from major indices on Friday, when the S&P 500 and Nasdaq closed at fresh records, rising about 1% and 3.3% for the week, respectively.
The November consumer price index, scheduled for release on Wednesday, is expected to show a slight uptick in pricing pressures.
Economists polled by Dow Jones expect a rise of 0.3% month-over-month and 2.7% year-over-year. This would mark an increase from October's readings of 0.2% and 2.6%, respectively.
Trending Stocks 🔥
Hershey, Mondelez - Hershey shares jumped over 10% after Bloomberg reported that Mondelez is trying to acquire the chocolate company.
Workday, Apollo Global - The two stocks were trading higher after it was announced they would be added to the S&P 500 index this month.
Macy’s - The stock ticked higher following an activist investors’ call for the department store chain to cut spending and reevaluate alternatives for its Bloomingdale’s and Bluemercury operations.
China Investigates Nvidia
Nvidia shares fell 2.6% on Monday after China's market regulator announced an investigation into potential antimonopoly law violations by the chipmaker.
The State Administration for Market Regulation is probing Nvidia's 2020 acquisition of Mellanox, an Israeli company specializing in data center network solutions, and related agreements made during the deal.
The investigation emerges amid heightened U.S.-China tensions over semiconductor technology.
The U.S. has increasingly restricted sales of advanced AI chips to China, prompting Nvidia to develop alternative products that comply with U.S. regulations while maintaining access to the Chinese market.
Despite this setback, Nvidia's stock has surged 180% this year, driven by strong investor interest in artificial intelligence technology.
The company's performance has been instrumental in pushing both the broader market and technology sector to new highs.
Responding to the probe, Nvidia stated it was "happy to answer any questions regulators have" about its business, adding that the company "wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them."
Oracle Misses Q2 Estimates
Oracle shares dropped 7% in pre-market trading today, following disappointing Q2 results and guidance that missed analyst expectations.
Key Financial Results:
Revenue: $14.06 billion (9% YoY growth) vs. $14.1 billion expected
Adjusted EPS: $1.47 vs. $1.48 expected
Net income: $3.15 billion ($1.10 per share), up 26% YoY
Cloud services revenue: $10.81 billion, up 12% YoY
Cloud infrastructure revenue: $2.4 billion, up 52% YoY
Notable Developments:
New partnership with Meta for Llama LLM infrastructure support
Plans to deploy 131,000 Nvidia "Blackwell" GPUs for AI computing clusters
Cloud services now represent 77% of total revenue
Forward Guidance:
Q3 revenue growth projected at 7-9% (approximately $14.3 billion), below analyst expectations of $14.65 billion
Q3 adjusted EPS forecast at $1.50-$1.54, missing analyst estimates of $1.57
Fiscal 2026 revenue target raised to $66 billion
Despite the earnings miss, Oracle's stock has performed strongly in 2024, rising over 80% - its best annual performance since 1999.
Google’s Super Chip
Google has announced a breakthrough in quantum computing with its new 105-qubit chip called Willow.
The processor reportedly completed a computing task in under five minutes that would take the world's fastest supercomputer approximately ten septillion years to solve - a timespan exceeding the universe's age.
This marks significant progress from Google's 2019 achievement, when its quantum processor solved a mathematical equation in three minutes, compared to an estimated 10,000 years for a supercomputer.
A key advancement comes in error reduction, a fundamental challenge in quantum computing. Unlike traditional computing bits representing either 1 or 0, quantum computers use qubits that can exist simultaneously in multiple states.
Google Quantum AI founder Hartmut Neven described this achievement as reaching "below threshold" - the ability to reduce errors while increasing qubit count. This has been a primary goal in the field since quantum error correction was first proposed in 1995.
Looking ahead, Google aims to perform its first "useful, beyond-classical" computation, which will address real-world applications beyond the capabilities of conventional computers.
Neven envisions quantum technology becoming essential for AI training data collection and advancing various fields, from drug discovery to developing efficient electric car batteries and fusion energy solutions.
Major tech companies, including Microsoft, Amazon, and IBM, are also developing their own quantum computing systems.
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Headlines You Can't Miss!
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.