Nvidia’s recent stock drop of 20% may have a silver lining, according to strategists. The Nasdaq composite index rose by 1.5%, gaining 277 points on Monday after President Joe Biden announced his withdrawal from the presidential race and endorsed Vice President Kamala Harris. The Dow Jones Industrial Average and S&P 500 also recorded gains of 0.3% and 1.1%, respectively.
Polymarket, a crypto-based betting platform, has backed Harris as the Democratic nominee for president, while PredictIt forecasts her as the potential 47th president of the United States.
In a move targeting the Chinese market, Nvidia’s shares increased by 4% following a report stating that the company is developing a new version of its Blackwell AI chips for China. The chips will be launched in partnership with local distributor Inspur, with expectations for the “B20” chip to begin shipping in the second quarter of 2025. Nvidia has chosen not to comment on the report.
Meanwhile, Tesla’s stock experienced a near 5% increase ahead of its earnings report, where CEO Elon Musk is expected to provide updates on the company’s much-anticipated robotaxi. Musk stated on social media that Tesla aims to have operational humanoid robots in limited production for internal use next year, with hopes for higher production for external companies by 2026.
In contrast, CrowdStrike, the cybersecurity firm linked to a significant global tech outage, continues to deal with the aftermath. The company reported that a notable number of the approximately 8.5 million affected Windows devices have returned to functionality. Nonetheless, its stock is down over 13% to around $263 as of the afternoon on Monday.
Verizon’s stock dropped nearly 6% following its earnings report, which revealed results below analysts’ expectations due to customers keeping their older phones longer. The company reported second-quarter revenue of $32.8 billion, just shy of the estimated $33.06 billion, with earnings per share at $1.15, aligning with expectations.