Stock Market News: Nvidia’s AI move, Tesla jumps on Musk’s China visit, debt ceiling latest
Tesla CEO Elon Musk visits China, Nvidia makes another major push into AI as the company nears $1 trillion valuation, investors return from the Memorial Day long weekend with a debt deal on the table and disgraced Theranos founder Elizabeth Holmes is set to report to prison. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Nvidia market value topped $1 trillion on Tuesday, making the chipmaker the first in its industry to hit the milestone.
Shares hit $404.98 in morning trading, exceeding the $404.85 level needed to reach the new high.
"Nvidia has done a lot of heavy lifting over the years," Ark Invest CEO Cathie Wood told FOX Business last week, "and it is the No. 1 hardware play in AI.
"While there are no "pure play" A.I. stocks, she added that with most publicly traded companies heavily involved in A.I. having other business offerings, Nvidia is now considered the dominant leader in the field.
A trader work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 24, 2023. REUTERS/Brendan McDermid
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SP500 | $4,205.52 | 0.07 | 0.00 |
Stocks on Wall Street closed mixed on Tuesday, pressured by worries about U.S. lawmakers opposed to a deal to raise the $31.4 trillion debt ceiling, but supported by another surge in Nvidia shares that briefly lifted the chipmaker into the rare club of companies valued at $1 trillion.
The S&P 500 index closed flat but remained near its highest level since August 2022, just above 4,200 points. The Dow Jones Industrial Average also was lower while the Nasdaq Composite rose. The S&P 500 and the Nasdaq were still set for monthly gains in May.
Over the weekend, U.S. President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy agreed to temporarily suspend the debt ceiling and cap some federal spending.
On Tuesday, McCarthy said the deal should be "easy" for Republicans to vote for and was likely to pass, but some right-wing Republicans said they opposed the bipartisan deal.
A Delta Airlines jet comes in for a landing in front of the Empire State Building and Manhattan skyline after flights earlier were grounded during an FAA system outage at Laguardia Airport, in New York City, New York, U.S., January 11, 2023. REUTERS/Mike Segar
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DAL | $36.36 | 0.47 | 1.31 |
Delta Air Lines is facing a proposed class action lawsuit over advertising touting the U.S. carrier as carbon-neutral, according to a complaint filed on Tuesday in California federal court.
The complaint, filed on behalf of a California resident who bought Delta tickets to engage in "more ecologically conscious air travel," alleges violations of state consumer protection laws and laws prohibiting unfair and fraudulent business practices.
Campaigners have filed hundreds of climate change-related suits to try to accelerate the world's shift to a low-carbon economy and fight an escalating climate crisis. They are increasingly targeting corporate green claims, often based on the voluntary purchase of carbon offsets, where companies buy credits in pollution-lowering projects to offset emissions.
A Boeing 787 Dreamline rolls off the factory. REUTERS
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BA | $204.31 | 0.68 | 0.33 |
Boeing Co has increased production of its widebody 787 Dreamliner from three to four planes per month as it gets ready to ramp to five a month by the end of the year, a company official said on Tuesday.
The U.S. planemaker also plans to add a second production line to the company's facilities in Charleston, South Carolina, as it completes work this year on inventory 787s that are being modified at the site to meet U.S. Federal Aviation Administration standards, said Lane Ballard, Boeing's vice president and general manager for the 787 program.
The modification involves fixing miniscule gaps in the forward pressure bulkhead that exceed specifications.
Boeing's plant in Everett, Washington, where 787s also are being modified to meet FAA standards, will continue doing that work, Ballard added.
People work on the trading floor at the global headquarters of Goldman Sachs investment banking firm at 200 West Street in New York City, U.S., January 11, 2023. REUTERS/Shannon Stapleton
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GS | $329.00 | -3.01 | -0.91 |
Goldman Sachs Group Inc is preparing another round of layoffs, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The cuts will affect fewer than 250 jobs, the report said, less than 1% of the bank's headcount of 45,400 at the end of March.
The layoffs at Goldman would mark the third round of job cuts in less than a year as investment banks take a hit from a slowdown in dealmaking, with a surge in interest rates blunting the corporate appetite for mergers and acquisitions.
Nearly every division at Goldman has been cutting expenses this year, the Journal report said.
Chinese State Councilor and Foreign Minister Qin Gang meets Tesla Chief Executive Officer Elon Musk in Beijing, China, in this handout image released by China's Ministry of Foreign Affairs May 30, 2023. China's Ministry of Foreign Affairs/Handout via REUTERS
| Symbol | Price | Change | %Change |
|---|---|---|---|
| TSLA | $200.10 | 6.93 | 3.59 |
Tesla CEO Elon Musk met with China's foreign minister on Tuesday in Beijing and reportedly said he was open to expanding the automaker's business there.
A statement from the Chinese ministry cited the billionaire as saying he "opposes decoupling," referring to fears that the world may split into multiple markets with incompatible products.
Tesla did not immediately respond to FOX Business' request for comment.
Tesla opened the first wholly foreign-owned auto factory in China in 2019. The opening came after ownership restrictions were eased by the Chinese government to increase competition and speed up industry development.
Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, arrives at the Manhattan federal court in New York City, U.S. March 30, 2023. REUTERS/Amanda Perobelli
Prosecutors on Monday asked a Manhattan federal court judge to deny FTX founder Sam Bankman-Fried's request to dismiss criminal charges stemming from allegations he stole billions of dollars from his company's customers to make up for losses at his hedge fund.
Bankman-Fried, 31, has pleaded not guilty to 13 counts of fraud, conspiracy, making illegal campaign contributions and foreign bribery.
Earlier this month, he urged U.S. District Judge Lewis Kaplan to dismiss 10 of the charges, with his lawyers arguing that several cryptocurrency companies, including his own Alameda Research, went bankrupt last year and that prosecutors rushed to judgment.
In a filing on Monday, prosecutors said motions to dismiss the charges were "meritless," pushing back on Bankman-Fried's claims that the allegations outlined in his indictment were insufficient and legally defective, Reuters reported.
House Speaker Kevin McCarthy of Calif., speaks with members of the press about debt limit negotiations Saturday, May 27, 2023, on Capitol Hill in Washington. (AP Photo/Patrick Semansky)
The details of the deal between President Joe Biden and House Speaker Kevin McCarthy are out.
The 99-page bill produced from their agreement Sunday would avoid a federal default while limiting government spending. But the two leaders still have to persuade Congress to pass the bill. Both sides can point to some victories in the package.
It includes provisions to fund medical care for veterans, change work requirements for some recipients of government aid and streamline environmental reviews for energy projects. But some conservatives are concerned that the compromise doesn't cut future deficits enough.
And Democrats have been worried about proposed changes to work requirements in programs such as food stamps.
A worker stands next to a Tesla being charged in Beijing, Tuesday, May 30, 2023. (AP Photo/Ng Han Guan)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| TSLA | $199.84 | 6.67 | 3.45 |
U.S. highway safety regulators have closed an investigation into Tesla allowing video games to be played on center touch screens while vehicles are moving.
The National Highway Traffic Safety Administration says in documents posted Tuesday that Tesla disabled the feature called “passenger play” with an online software update in December of 2021 under pressure from the agency.
The agency says removing “passenger play” resolved its concerns about distracted driving. The 2021 software update covered more than 580,000 vehicles from the 2017 through 2022 model years.
The agency said it opened the investigation in December of 2021 after getting a complaint from a Tesla owner that games could be played by the driver while the vehicles are moving.
Bottles of prescription painkiller OxyContin pills, made by Purdue Pharma LP sit on a counter at a local pharmacy in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey/File Photo
Bankrupt Oxycontin manufacturer Purdue Pharma can shield its owners, members of the wealthy Sackler family, from opioid lawsuits in exchange for a $6 billion contribution to the company's broader bankruptcy settlement, a U.S. appeals court ruled on Tuesday.
The New York-based 2nd U.S. Circuit Court of Appeals said that U.S. bankruptcy law allows legal protections for non-bankrupt parties, like the Sacklers, in extraordinary circumstances.
Purdue has sought to use its bankruptcy case to resolve thousands of lawsuits, many filed by state and local governments, alleging that Oxycontin helped kickstart an opioid epidemic that caused more than 500,000 U.S. overdose deaths over two decades.
Purdue has pleaded guilty to charges related to its opioid marketing, while its owners have expressed regret but denied wrongdoing.
Close up of Nvidia microprocessors at a conference. REUTERS
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NVDA | $389.46 | 9.66 | 2.54 |
Nvidia Corp. and MediaTek Inc. will partner on technology to power advanced vehicle infotainment systems that can stream video or games or interact with drivers through artificial intelligence, the companies announced Monday.
The agreement, which will include MediaTek systems and Nvidia software, was made public at the Computex technology trade show in Taipei, Taiwan, according to Reuters.
MediaTek will integrate a Nvidia graphic processing unit chiplet and Nvidia software into the system-on-chips it provides to automakers for infotainment displays, the companies said.
The feature would be compatible with automated driving systems based on Nvidia technology.
Unit 3’s reactor and cooling tower stand at Georgia Power Co.'s Plant Vogtle nuclear power plant on Jan. 20, 2023, in Waynesboro, Ga. Company officials announced Wednesday, May 24, 2023, that Unit 3, one of two new reactors at the site, would reach full power in coming days, after years of delays and billions in cost overruns. (AP Photo/John Bazemore, File)
A new reactor at a nuclear power plant in Georgia has reached its full power output for the first time and is scheduled to enter commercial operation within the next month.
Georgia Power Co. announced Monday that Unit 3 at Plant Vogtle, southeast of Augusta, has reached its full output of 1,100 megawatts of electricity. That's enough to power an estimated 500,000 homes and businesses. The power will be sent to Georgia and other states.
Operators are conducting further testing to prove they can run the reactor in ways required for regular operations, Georgia Power CEO Kim Greene in a statement, calling the achievement “an exciting milestone.”
The fourth reactor has finished a key testing phase and operators expect to start loading radioactive fuel between July and October, aiming for the reactor to reach commercial operation between December and March 2024.
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