CNBC Business News Update - Market Close: Stocks Erase Monday Losses, Roblox Falls On Short Seller Comments, Nvidia Rallies On AI Boom Predictions

Episode Date: October 8, 2024

The latest in business, financial, and market news and how it impacts your money, reported by CNBC's Peter Schacknow.

I'm Peter Schach, now CNBC. Stocks erased nearly all of Monday's sharp losses with a rally that saw the averages finish near session highs. The Dow gained 126 points to close at 42,080. The S&P 500 jumped 1 percent, or 55 points. And the Nasdaq rallied 259 points, or 1.5 percent. The Dow was the only average that did not reclaim the ground it lost during the Monday session. Drew Mattis, chief market strategist at MetLife Investment Management, says one danger point for investors is thinking the Fed will cut interest rates sooner and faster than the central bank actually will. We know the labor market's slowing. If unemployment moves

higher, inflation will probably come lower. And so that's the mechanism. And then the question is, you know, how much does the Fed have to cut in order to make sure that they can pretty well predict where the peak in unemployment is? And I think that's where markets have it wrong. Markets have priced in just a significant amount of easing from the Federal Reserve, even though there's very little evidence to suggest there's any sort of weakness in the economy that would warrant that kind of reaction. Yesterday's surge in crude prices was largely reversed today, with WTI crude down 4.6 percent. That follows reports of a possible ceasefire between Hezbollah and Israel.

Among stocks on the move today, Roblox was down 2 percent after Hindenburg Research disclosed a short position on the gaming platform stock, saying Roblox had inflated its performance metrics. Roblox denies the claim, calling it misleading. And NVIDIA was higher by more than 4 percent after the chairman of contract manufacturer Foxconn said the artificial intelligence boom still has some time to go. Peter Schach now, CNBC. Invest with an advantage with CNBC Pro. Actionable analysis of global market coverage, plus customized investing tools. Become a smarter investor and get pro now at cnbc.com slash get pro.