Nvidia shares fell over 3% after Softbank disclosed that it has sold its entire stake in the world’s most valued company for just under $6 billion to fund its investment in OpenAI.
The bill to reopen the government was passed by the US Senate and will now be placed before the House of Representatives mostly on Wednesday. On passage in the house, the bill will be signed by US President Donald Trump, who has already endorsed it in its current form.In an historical analysis of the past 15 shutdowns ending, the S&P 500 gains 2.3% on average in the next one month. If such a scenario plays out, the index could touch levels of 7,000 by mid-December, according to CFRA research.
The Dow Jones surged, while other indices recovered on Tuesday, despite Michael “big short” Burry alleging that AI hyperscalers have artificially inflated their earnings numbers by understating their depreciation expenses on projections that their chips will last longer. Burry recently disclosed short positions in Nvidia and Palantir, two of the biggest S&P 500 movers this year.
The optimism on Wall Street stems from the fact that the mention of words like “economic slowdown” or synonymous, have declined to the lowest in earnings calls since 2007. JPMorgan Market Intelligence stated that it remains buyers of any dip while UBS stated that easing from the Fed, strong earnings and continued AI spending will enable the Wall Street rally further as the year draws to a close.
(With Inputs From Agencies)
