Video summary
On Monday afternoon, the US stock markets closed flat to slightly in the red as investors reacted to a complex mix of geopolitical tensions and corporate news. The session began with major indices hovering near all-time highs established last Wednesday; however, pressure mounted on technology-heavy sectors like the Nasdaq 100, which fell by roughly two-tenths of one percent amid concerns over chip stocks. While software giants such as Adobe, Intuit, Palantir, and Autodesk managed to stay in the green, hardware leaders faced headwinds with Nvidia dropping nearly two percent and Apple slipping almost two percent despite maintaining its position at the top of its trading channel. The broader market sentiment was further influenced by a significant rally in energy prices driven by escalating tensions over the Strait of Hormuz, causing crude oil futures to surge above 81 dollars per barrel as investors priced in potential supply disruptions.
The most notable development during the day involved a massive partnership announcement between Nvidia and a consortium of US investment giants including Apollo, Blackstone, Goldman Sachs, Brookfield, and KKR. This collaboration aims to fund an unprecedented $500 billion initiative for building out artificial intelligence infrastructure, representing a shift where funding scales from billions toward trillions. Ironically, the market reacted negatively to this breaking news in real-time, with Nvidia shares dipping further as traders initially interpreted the scale of the deal or its specific structure unfavorably before any long-term implications could be fully assessed. This event highlighted how even monumental positive developments can cause short-term volatility when they fundamentally alter expected valuations for key players like Nvidia, which serves as a bellwether for both tech and AI sectors.
Beyond equities, precious metals continued their strong performance with gold climbing nearly one percent to trade around 44 dollars an ounce, while silver rallied almost four percent following the strength seen in mining stocks earlier in the week. The volume data provided additional insight into market dynamics, showing that despite a generally light trading day for futures and ETFs compared to last week's activity, there was significant buying pressure in gold equities like GDX. This surge in metal-related equity volumes suggested strong underlying demand even as broader stock indices struggled to maintain momentum against the backdrop of rising oil prices and mixed signals from major technology companies.
As the trading day concluded with about an hour remaining on Monday afternoon, analysts noted that while volume was lighter than previous sessions, specific sectors like software and energy were outperforming their peers or recovering losses. The S&P 500 remained essentially flat at approximately 7779 points after touching new highs earlier in the week, whereas the Dow Jones Industrial Average slipped by a quarter of one percent and the Russell 2000 fell about half a percent. Looking ahead to Tuesday's session, market participants will be closely watching whether Nvidia can stabilize its price action following the partnership news and if energy stocks can sustain their gains given the geopolitical backdrop in the Middle East that continues to drive crude prices higher than they have been since Friday's jobs report release.
Read the full video transcript
O'Brien
>> Good afternoon folks. Tommy O'Brien
coming to you live from TFN and Monday
afternoon final hour of the trading day
and we got markets flat to slightly in
the red.
And how about a VIX? We pick kick it off
1533 as a market right near all-time
highs. You have an S&P right now flat on
the session. We make all-time highs last
Wednesday and we're bumping up against
that area this morning. You were as high
as 7798. We back off a bit. S&P is flat
to the tick as I come to you trading at
7779.
Nasdaq 100 under a little pressure
today. You got Nvidia down by 2%.
They're teaming up with Wall Street for
$500 billion. How about that? We'll talk
about that one. Nonetheless, Nasdaq off
by 52 points. That's a loss of 2/10%
right now in the red 29,782.
The Dow off a quarter percent off
137.54,015
and the Russell off by about half a
percent off 16 points at 3,025.
Now, the backdrop of some of the market
action right now is crude. Okay, and the
headline we kick it off with
Stocks churn as the Hormuz standoff
spurs rally in oil. And yeah, there's a
little standoff, folks. We're just above
82. We're trading right now up $3.56
up 4.55%
81.72 a barrel for light sweet crude.
Now, higher crude prices
as is the case occasionally. Pretty
remarkable how far we've moved since
the jobs number of Friday. We give it
all back and then some. You have a
10-year right now negative by almost 10
ticks. 108.11. We're above 4.7, folks.
Just like that. We're above 4.7. The
dollar catches a bid.
99.82
but gold as well. Okay, the run's not
stopping just yet. Gold up another
almost 1% 44,42.50
44.40. How's that for a number, man?
44.40.50. Gold on quite a run.
The equities
were low this morning. You're up a bit.
Holding on to the gains of last week.
And the equities are outperforming the
metal last week. The metal catching up a
bit right now. How about silver? Up
nearly 4% to 66 bucks right now on
silver. You check out some of the
equities. Hecla up another 4%. Silver
equities First Majestic up 3% right now.
Yeah, Harmony up 1.1%.
Barrick had their numbers.
And yeah, not living up to expectations.
Down by almost 7%. Newmont up 3.2%
in equities. Now, as I mentioned,
Nvidia.
So.
Now, this you know, you look at this
heat map, all right? Nvidia's lower.
Apple's off by almost 2%. You got Intel,
they're raising $15 billion.
Okay, so it's not just the story I'm
going to tell you with the 500 billion.
So, Nvidia's lower, some of the chip
stocks, right? AMD off by almost 2%. And
then you have some of the software.
Okay, you got Adobe. Intuit, Palantir,
Autodesk, all in the green today.
That's your Nasdaq 100. You jump over
the heat map for the S&P's. Energy,
obviously.
And you got crude prices higher. Exxon
up 4.3%. Chevron similar. Yeah, Lilly in
the green as well.
And some of those memory stocks. SanDisk
up by 3% right now.
But yes, Nvidia. So, Nvidia's down 2.1%
right now. And check this story, man.
Video game style numbers, I say. Folks,
we're approaching trillion-dollar
funding packages, right? Trillion
dollars, man.
A million's now a billion, and the
billion's going to become a trillion.
This could get announced today. Now,
this news breaking in the middle of the
day.
A group of US investment giants are
nearing a partnership with Nvidia. I
can't wait to see how this partnership
is structured.
Like who's on the hook, right? Nvidia's
going to be on the hook. That seems to
be the circulatory deal.
On a $500 billion in funding for the
build out of AI.
Apollo, Blackstone, Goldman Sachs,
Brookfield, KKR.
And they don't really say,
you know, it's a partnership.
We'll find out nonetheless.
You know, if the money Hey, we'll we'll
find out. You're talking about $500
billion, man. And
Yeah, that was the news right there.
Okay?
That's actually not good news, right?
Which is remarkable that you have the
Nvidia rip lower on that news.
All right. Wait a second. We're we're
funding what?
Seems a little circulatory.
We'll find out.
All right. Let's take a look at the
volume in these markets right now.
You jump over the S&P. We take a look at
the futures. I mean, it's going to be
tough to compete with some of the run we
had this last week even, but we're at
about 700,000 contracts right now on the
S&P's. Yeah, look at the Nasdaq. We've
got an hour to go, but a light day.
343,000 contracts. We jump over the ETF
structure.
Only doing 25 million on the S&P's,
being flat right now. We jump over the
Q's. Look at this light day. Q's, 18
million.
Going into 60 million right now.
Jump over the metals volume.
You know,
check out the the volume, folks. Okay?
We had some nice volume. You look at the
gold contract. It was decent volume on a
weekly of 753, but how about the
equities? Watch this. Look at the GDX,
man.
Look at that. There's your sign of
strength, folks, in the equities. Okay?
You break away.
You take out any part of this
consolidation in October.
You break apart and take out, you know,
months of action.
And you do it with volume most
importantly. Most volume we've seen
since going back almost four or five
months in the equities. GDX and you're a
little bit higher today.
You got gold up another 42 bucks at
44.41 right now.
Timper on some of those memory stocks.
Micron flat right now in the session.
When you got Sandisk up by 3.2% right
now.
Talked about the software stocks.
Let's take a look at
Yeah, Salesforce. Look at this. All
right, there's your daily.
Making a run for the highest of June
1st.
Yeah, it's a decent move. Let's see if
we can get even more volume.
Look at the volume we're coming into on
a weekly. Almost 89 million on
Salesforce. You're up by 2.5% right now.
The volatility continues. Take a look at
Intuit. Yeah, bunch of software story.
Look at the bounce.
Barely a bounce.
Intuit up by 2.6% today. We jump around
to some of the others. Microsoft shares
up by 1.1% Amazon up by 9/10% right now.
Google shares in the green as well, but
Apple.
Yeah, Apple
>> [music]
>> down 1.9% still at the top of its
channel at. All right, folks. S&P's
flat. Nasdaq down by 43. We're coming
back with Steve Rhoads. We'll talk some
markets. We'll be right back.
>> [music]