Stock Market Prep: 5 Things to Watch Before the Market Opens
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As the stock market prepares to open, investors are closely monitoring key developments that could influence trading today. From corporate charges and executive stock sales to international negotiations and market shifts, understanding these factors is crucial. Here are the five things you need to watch before the market opens.
1. Apple Faces EU Charge for Breaching Digital Markets Act
The European Commission has charged Apple (AAPL) with breaching the newly implemented Digital Markets Act. The Commission alleges that Apple’s App Store rules prevent app developers from “freely steering consumers” to other channels, violating the Act’s provisions aimed at fostering competition within the tech sector. This is the first charge under the new law, marking a significant regulatory challenge for Apple.
Separately, reports suggest that Apple is in talks with Meta Platforms (META) to integrate Meta’s generative AI model into Apple Intelligence, indicating a potential pivot towards AI technology. Despite these developments, Apple shares remain relatively unchanged in premarket trading, while Meta shares have seen a slight uptick.
2. Nvidia Falls Ahead of Shareholder Meeting as CEO Huang Sells Shares
Nvidia (NVDA) shares are experiencing further declines, down over 2% in premarket trading. This follows recent SEC filings revealing that CEO Jensen Huang has been selling shares in the company. Nvidia, which has seen a 164% surge in its stock this year due to AI-related enthusiasm, briefly surpassed Microsoft (MSFT) as the world’s most valuable company last week.
Investors are now focused on Nvidia’s upcoming annual shareholder meeting. Additionally, Nvidia’s ongoing supply of AI technology to Middle Eastern telecom giant Ooredoo adds another layer of interest to the company’s current narrative.
3. Broadcom Reportedly in Talks With ByteDance to Build Advanced AI Chip
Broadcom (AVGO) is reportedly in negotiations with ByteDance, the parent company of TikTok, to develop an advanced AI chip. This collaboration comes at a time of heightened geopolitical tension, with the U.S. aiming to limit China’s access to advanced semiconductors. The proposed 5 nm chip, compliant with U.S. export restrictions, will be produced by Taiwan Semiconductor Manufacturing Company (TSM).
This deal is noteworthy given Broadcom’s existing provision of older-generation AI processors to ByteDance’s data centers. Despite the news, Broadcom shares remain largely unchanged in premarket trading.
4. Bitcoin Keeps Dropping, Drags Robinhood, Coinbase
Bitcoin (BTCUSD) continues its decline, now trading around $61,000, significantly lower than its March peak of over $73,000. This downturn follows the SEC’s approval of Bitcoin ETFs, which initially boosted demand. Despite overall positive market sentiment driven by cooler-than-expected inflation data, Bitcoin’s fall is impacting crypto-related stocks.
Shares of trading app Robinhood Markets (HOOD) and cryptocurrency exchange Coinbase Global (COIN) are down 1.3% and 3%, respectively, in premarket trading. Additionally, Bitcoin miners Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) are each down about 3%.
5. China Suggests German Cars Could Benefit as Beijing Moves to Stop EV Tariff Hike
China has proposed that Germany’s luxury car manufacturers could benefit if Berlin persuades the European Union to drop tariffs on Chinese electric vehicle (EV) exports. The EU recently announced plans to impose tariffs of up to 38.1% on Chinese EV imports, while the U.S. is set to raise tariffs on Chinese EV imports to 100% from 25%.
China currently imposes a 15% tariff on passenger vehicles from the EU and has suggested it might lower tariffs on large-engine cars in exchange for reduced European tariffs. This move highlights the ongoing trade negotiations that could significantly impact the automotive industry.
Conclusion
As the market opens, these five key developments will be pivotal in shaping investor sentiment and market dynamics. From regulatory challenges and executive actions to international trade negotiations and cryptocurrency fluctuations, staying informed on these issues will be crucial for navigating today’s trading landscape.
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