News of the day for June 24, 2024
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The European Commission has appointed Apple (AAPL) violating the Digital Markets Act; Nvidia (NVDA) shares continued their declines from late last week as Chief Executive Officer (CEO) Jensen Huang sold shares in the artificial intelligence (AI) darling; Broadcom (AVGO) is reportedly in talks with TikTok’s Chinese parent company ByteDance to produce an advanced AI chip amid escalating geopolitical tensions with the US; Bitcoin (BTCUSD) is trading around $61,000, dragging crypto-related stocks like Robinhood Markets (CAP), Coinbase Worldwide (MINT), Marathon Digital Holdings (MARA), and riot platforms (REVOLT); and China has reportedly told Germany that the European country’s luxury car makers could benefit if Berlin convinces the European Union (EU) to cut tariffs on Chinese electric vehicle (EV) exports. US stock futures rise, starting the following week, which saw the S&P 500 briefly hit the 5,500 mark and Nvidia had a short-lived stint as the world’s most valuable company. Here’s what investors need to know today.
1. Apple is facing an EU complaint for violating the law on digital markets
Apples (AAPLApp Store rules prevent app developers from “freely directing consumers to other channels,” the European Commission said, accusing the iPhone maker of violating the recently implemented technology law. The Commission said that in its preliminary opinion, Apple had violated the sweeping new Digital Markets Act. Apple is the first company to be sued for failing to comply with the new law, which aims to open the operations of technology companies to wider competition. Individual, The Wall Street Journal reported that Apple, which has been left behind in the AI ​​race, has held talks with rival Meta Platforms (META) about integrating Facebook parent’s generative AI model into Apple Intelligence, the iPhone maker’s new system for the technology. Shares of Apple are little changed in premarket trading, while those of Meta are up less than 1%.
2. Nvidia jumps ahead of shareholder meeting as CEO Huang sells shares
Nvidia (NVDA) shares are falling further, down more than 2% in premarket trading, after the artificial intelligence (AI) star briefly overtook Microsoft (MSFT) was named the most valuable company in the world last Tuesday. According to Securities and Exchange Commission (SEC) filings in recent weeks, CEO Jensen Huang has sold shares in the company. Nvidia shares, which are up 164% this year on the wave of investor enthusiasm for all things AI, will take center stage this week ahead of its annual shareholder meeting on Wednesday. The chip designer also reportedly supplies its technology to Middle Eastern telecommunications giant Ooredoo.
3. Broadcom is reportedly in talks with ByteDance to build an advanced AI chip
Broadcom (AVGO) is reportedly in talks with ByteDance, TikTok’s Chinese parent company, to produce an advanced AI chip, an unusual partnership at a time when the US is trying to limit China’s access to advanced semiconductors. Taiwanese semiconductor manufacturer Taiwan Semiconductor Manufacturing Company (TSM) will produce the 5nm chip, which would meet US export restrictions Reuters, who reported on the negotiations. Broadcom already equips ByteDance’s data centers with an older generation AI processor. Broadcom shares are little changed in premarket trading.
4. Bitcoin continues to fall, Robinhood and Coinbase are prevented
Bitcoin (BTCUSD) continues to fall and is now trading around $61,000, well above March’s all-time high of over $73,000, following the SEC’s approval of ETFs based on cryptocurrency turbocharged demand. Bitcoin has continued to lose ground even as cooler-than-expected inflation data has generally supported stocks. Bitcoin’s decline weighs on cryptocurrency-linked stocks, with trading app Robinhood Markets (CAP) falls 1.3% in premarket trading and cryptocurrency exchange Coinbase Global (MINT) fell by 3%. Bitcoin miners Marathon Digital Holdings (MARA) and riot platforms (REVOLT) also decline by about 3% each.
5. China suggests German cars could benefit if Beijing moves to stop EV tariff hikes
China has told Germany that the European country’s luxury car makers could benefit if Berlin convinces the European Union (EU) to cut tariffs on Chinese electric vehicle (EV) exports. Bloomberg reported. The EU announced plans earlier this month to impose tariffs of up to 38.1% on imported Chinese EVs, weeks after the US said it would increase tariffs on Chinese EV imports to 100% from 25% this year. China currently imposes a 15% tariff on passenger cars from the EU and has suggested to Berlin that it could reduce its existing tariffs on cars with large engines in exchange for removing European import duties, the report said.
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