Tech stocks, including giants like Nvidia and Apple, are poised to benefit from anticipated Federal Reserve rate cuts, analysts suggest. On Monday, the Nasdaq composite index experienced a rise of 1.5%, gaining 277 points, a boost attributed to President Joe Biden’s decision to withdraw from the presidential race and endorse Vice President Kamala Harris. The Dow Jones Industrial Average and S&P 500 saw increases of 0.3% and 1.1%, respectively.
Markets are also reflecting optimism regarding Harris’s candidacy, as predictions from crypto-based platforms like Polymarket and PredictIt suggest she could become the Democratic nominee and potentially the next president of the United States.
In company news, Nvidia’s stock rose by 4% after reports emerged that the company is working on a new version of its Blackwell AI chips for the Chinese market. Nvidia is reportedly collaborating with local partner Inspur for the launch of the chip, referred to as the “B20,” which is expected to begin shipping in the second quarter of 2025.
Tesla’s stock jumped nearly 5% in the lead-up to its earnings report, where CEO Elon Musk is likely to address the delayed launch of its robotaxi service. Musk mentioned on social media that the company plans to produce humanoid robots for internal use next year and hopes to scale production for external use by 2026.
CrowdStrike, the cybersecurity firm involved in a significant global tech outage last week, is slowly recovering from the incident. The company reported that many of the roughly 8.5 million Windows devices affected are becoming operational again. However, CrowdStrike’s stock fell over 13%, trading around $263 on Monday.
Conversely, Verizon’s stock dropped nearly 6% following the release of its earnings report, which revealed that the company fell short of quarterly revenue expectations. The telecommunications giant reported revenues of $32.8 billion, slightly below the anticipated $33.06 billion, while earnings per share matched expectations at $1.15. The decline is partly attributed to customers holding onto their older phones longer, negatively impacting upgrade rates for telecom providers.