Tech stocks, including giants like Nvidia and Apple, may see a boost from anticipated Federal Reserve rate cuts, according to analysts. On Monday afternoon, the Nasdaq climbed 1.5%, gaining 277 points, following President Joe Biden’s withdrawal from the presidential race and his endorsement of Vice President Kamala Harris. The Dow Jones Industrial Average and S&P 500 also rose, increasing by 0.3% and 1.1%, respectively.
The crypto-based betting platform Polymarket currently favors Harris as the Democratic nominee, while PredictIt from New Zealand suggests she may become the 47th president of the United States.
In related news, Nvidia’s stock rose by 4% after reports emerged that the company is designing a version of its new Blackwell AI chips for China. Nvidia plans to collaborate with local partner Inspur to sell the chip, tentatively named “B20,” which is expected to start shipping in the second quarter of 2025.
Meanwhile, Tesla’s stock experienced a nearly 5% increase before its upcoming earnings report. Elon Musk is expected to provide updates on the company’s delayed robotaxi initiative. Musk mentioned on X that Tesla could have functioning humanoid robots for internal use by next year, with hopes for broader production by 2026.
CrowdStrike, the cybersecurity firm responsible for the recent global tech outage, is gradually recovering. The company reported that a significant number of the approximately 8.5 million affected Windows devices are back online. However, CrowdStrike’s stock was down over 13%, trading around $263.
Verizon faced a nearly 6% decline in its stock after releasing its quarterly earnings report, which reflected missed revenue expectations. Customers have been retaining their old phones longer, negatively impacting upgrade rates. Verizon’s second-quarter revenue was reported at $32.8 billion, slightly below the analysts’ average estimate of $33.06 billion, while its earnings per share met expectations at $1.15.