Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading in New York on August 23, 2024.
Angela Weiss | AFP | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Wall Street rally Stocks rose after Federal Reserve Chair Jerome Powell said the “time has come” to cut interest rates. The Dow Jones Industrial Average jumped 462 points, while the Nasdaq Composite and the S&P 500 climbed 1.47% and 1.15%, respectively. For the week, the Dow gained 1.3%, the Nasdaq 1.4% and the S&P 500 rose 1.45%. Meanwhile, the yield on the 10-year Treasury slipped, while U.S. oil prices rose more than 2% to move back above $74 a barrel.
‘The time has come’ Following Powell’s indication of an impending interest rate cut, market attention has pivoted to the timing and extent of the reduction. Traders currently anticipate a quarter-point cut in September, with rising expectations of a more aggressive half-point reduction. The likelihood of a larger cut is gaining traction, particularly if the August jobs report reflects the weakness seen in July’s figures. As the Fed’s mid-September meeting approaches, CNBC’s Jeff Cox cast an eye over the key economic indicators that could influence the final decision.
Returning empty Boeing‘s Starliner capsule will return from the International Space Station without astronauts. NASA astronauts Butch Wilmore and Suni Williams will instead return via SpaceX’s Dragon spacecraft, extending their stay on the ISS by about six months. The decision follows issues with Starliner’s propulsion system during its crew flight test. “We want to further understand the root causes and understand the design improvements so that the Boeing Starliner will serve as an important part of our assured crew access to the ISS,” NASA Administrator Bill Nelson said. The setback could threaten Boeing’s involvement with NASA’s commercial crew program, which has already absorbed losses of more than $1.5 billion.
Activist defense Intel is working with Morgan Stanley and other advisors to defend against potential activist investors as it struggles to compete with rivals like Nvidia. Intel is cutting 15,000 jobs as part of a $10 billion cost-reduction program as CEO Pat Gelsinger attempts to turn the chip maker around. Morgan Stanley has previously worked with the Intel, including spinning off Mobileye in 2022. The company’s difficulties stem from missing key market trends, including the smartphone boom and the current AI surge.
Export control list China strongly opposes the U.S. decision to add 42 Chinese firms to its export control list due to alleged ties to the Russian military. The United States also added 63 Russian companies and 18 from other countries for sending U.S. electronics to Russian military-linked entities that produced thousands of Shahed-136 drones for use against Ukraine. China’s Ministry of Commerce said the decision disrupts international trade, pledging that Beijing would protect the rights of Chinese companies.
[PRO] Trading Fed rate cuts As the Fed prepares for interest rate cuts, Evercore ISI highlights a few regional banks poised to outperform. These banks are actively reducing asset sensitivity through strategic balance sheet adjustments, positioning them for success in a lower-rate environment.
The bottom line
“This is going to be a drop-the-mic moment” for Nvidia, Wedbush’s Dan Ives told CNBC’s Worldwide Exchange. “Powell, Jackson Hole — so important — but the market, what it’s going to do for the rest of the year and I could argue 2025, it starts with this Nvidia earnings.”
On Wednesday, Nvidia — the undisputed leader in AI — will deliver its second-quarter earnings after the closing bell. The stock has soared 161% this year, despite plunging to a low of $90.69 on Aug. 5, as markets capitulated on economic concerns.
“A delay of two to three months, I view that as a sort of an asterisk. This is not moving the needle in terms of a demand perspective,” Ives said.
As footnotes go, while Nvidia continues to dominate the AI chip market, its competitor Intel has fallen significantly behind. Not only did Intel miss the smartphone revolution, but it’s also lagging in the AI race. Nvidia has overtaken Intel as the largest chipmaker by revenue, with Intel now roughly 35 times smaller in market capitalization. Facing these challenges, Intel has enlisted the help of Morgan Stanley and other advisors to fend off potential activist investors.
Former PIMCO chief economist Paul McCulley expects a series of 25-basis-point reductions at the next several FOMC meetings. McCulley also believes a more aggressive 50-basis-point cut could be implemented if August’s jobs report, due on Sept. 6, shows signs of weakeness.
Powell “drew a line in that we don’t want to see further deceleration in the labor market — we’re there,” McCulley said on CNBC’s “Squawk on the Street.” “I don’t think that’s the base case yet, but clearly he’s opened the door for front-loading of the easing process.”
Powell’s dovish tone also sends a strong signal to the market, according to David Russell, global head of market strategy at TradeStation. “This keeps a tailwind at the market’s back into year-end, making it harder to expect a retest of this month’s lows,” he said.
— CNBC’s Sarah Min, Rohan Goswami, Lisa Kailai Han, Michele Luhn, Michael Sheetz, Jesse Pound, Jeff Cox, Alex Harring, Yun Li, Pia Singh and Spencer Kimball contributed to this report.
BMW told dealers it plans to freeze EV production in the US in May as it deals with the uncertainty surrounding the new auto tariffs. Despite the pause, BMW said it won’t raise prices on most imported vehicles. At least, for now.
Why is BMW pausing EV production in the US?
After celebrating the assembly of its seven millionth vehicle in the US this week, BMW, like most major automakers, is bracing for a shakeup under the Trump Administration.
According to Automotive News, BMW told its dealers on April 29 that it will “postpone” EV production in the US in May. The note didn’t specify a reason, but it’s more than likely due to Trump’s 25% tariff on vehicle imports.
The luxury automaker has had more success than most of its peers with four electric vehicles: the i4, i5, i7, and iX. However, all four are built in Germany.
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In the first three months of 2025, BMW sold 13,538 EVs, up 26% from Q1 2024. The i4 was BMW’s top seller with sales surging 57% to 7,125, followed by the iX at 3,626. In comparison, Mercedes-Benz sold just 3,472 electric vehicles in the US in the first quarter, down 58% year-over-year (YOY).
2025 BMW i4 M50 xDrive (Source: BMW)
Sebastian Mackensen, President & CEO of BMW of North America, said the company “remains in a strong position in the US, where the majority of the vehicles we sell in this market are also assembled.”
BMW also told dealers in the memo that it will not raise prices on most imported vehicles through June. The only exception is the 2 Series and M2 performance coupe.
2026 BMW iX xDrive60 (Source: BMW)
The news comes after most major automakers, including GM, Volvo, Mercedes-Benz, Volkswagen, and Stellantis, withdrew their financial guidance this week due to the uncertainty caused by Trump’s tariffs.
Earlier today, Ford CEO Jim Farley told CNN, “We’re all trying to figure this out to do the right thing for the country,” adding, “It’s going to take a little time.” In the meantime, expect to see more drastic measures being taken.
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After extending several promotions this week, Ford is offering significant discounts that could save you thousands. In addition to employee pricing on most Ford and Lincoln vehicles, the company is offering a free home charger with the purchase of an EV. Here’s how you can snag some discounts.
The promo was initially expected to end on June 2, but CEO Jim Farley told CNN in an interview on Wednesday that the company is extending it through July 4. Although the campaign now runs another month, Farley said he can’t promise prices won’t go up when the offer expires.
As for how much of a discount, it will depend on the vehicle’s cost. Under the employee pricing plan, the 2025 Mustang Mach-E, with an MSRP of $36,495, costs just $34,599. The 2025 F-150 Lightning, with an MSRP of $62,995, is nearly $5,000 off, at just $58,183.
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“We want to keep our prices competitive and low,” Farley explained. Like most automakers, Ford is bracing for the impact of the new auto tariffs in the US.
2025 Ford Mustang Mach-E (Source: Ford)
Outside of Tesla, Ford builds a greater percentage of vehicles in the US than any other major automaker. According to Farley, “This is an opportunity for Ford.” He explained that Ford has “a different footprint, a different exposure for tariffs.”
Ford imports around 21% of the vehicles it sells in the US. Crosstown rival GM imports around 46%. According to S&P Global Mobility, Ford made around 2 million cars in the US last year. It also built around 391,000 in Mexico and 54,000 in Canada.
Ford Mustang Mach-E (left) and F-150 Lightning (right) (Source: Ford)
For EV buyers, Ford is also extending its Power Promise program, which offers a free Level 2 home charger (plus standard installation) with the purchase of an F-150 Lightning or Mustang Mach-E.
Other benefits include 24/7 live electric vehicle support, roadside assistance, and an 8-year, 100,000-mile battery warranty. The promo now runs through July 6.
Ready to take advantage of the savings? We can help you get started. You can use our links below to find deals on the Ford F-150 Lightning and Mustang Mach-E at a dealer near you.
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Waymo and Toyota have announced a partnership aimed at competing with Tesla in the development of personally owned self-driving vehicles.
Waymo is already widely regarded as the market leader in autonomous driving, as it currently provides approximately 250,000 autonomous paid rides per week in the few markets where it operates.
Tesla is playing catch-up as it plans to offer the same service Waymo offers, starting in Austin in June, with 10 to 20 vehicles.
However, there’s an area of autonomous driving where Tesla is still seen as the market leader: personally owned self-driving vehicles.
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While Tesla has yet to deliver on its promise of unsupervised self-driving capability in its consumer vehicles, it uses the same technology in those as it plans to do in its internal fleet in Austin, albeit with more Austin-specific training and some teleoperation assists.
Some see this as an opportunity for Tesla to take the lead in personally owned autonomous vehicles if it can solve self-driving on its current hardware, which is a big if.
It already has smoothly integrated sensors that don’t clash with the designs of its vehicles, which is something that car buyers care about, but it’s not a big deal for an autonomous ride-hailing fleet, which is what Waymo has focused on so far.
Now, Waymo and Toyota have announced that they are exploring collaboration on autonomous vehicles :
Toyota Motor Corporation (“Toyota”) and Waymo reached a preliminary agreement to explore a collaboration focused on accelerating the development and deployment of autonomous driving technologies. Woven by Toyota will also join the potential collaboration as Toyota’s strategic enabler, contributing its strengths in advanced software and mobility innovation. This potential partnership is built on a shared vision of improving road safety and delivering increased mobility for all.
More specifically, the collaboration will focus on “next-generation personally owned vehicles (POVs)”:
Toyota and Waymo aim to combine their respective strengths to develop a new autonomous vehicle platform. In parallel, the companies will explore how to leverage Waymo’s autonomous technology and Toyota’s vehicle expertise to enhance next-generation personally owned vehicles (POVs). The scope of the collaboration will continue to evolve through ongoing discussions.
This would point to Waymo integrating its technology into Toyota’s vehicles for consumers.
While it’s still early, Waymo appears to be doing something Elon Musk, Tesla’s CEO, claimed Tesla would be doing soon: announcing deals to integrate its ‘Full Self-Driving’ technology in vehicles built by other automakers.
This is a big deal. The world’s leader in autonomous vehicles is partnering with the world’s largest automaker.
It’s still early in the collaboration, as per the press release, but it does sound like Waymo is going to develop a hardware suite that can be fitted into Toyota’s consumer vehicles.
This would go after Musk’s argument that Waymo can’t compete with Tesla due to the high cost of its autonomous vehicles.
Waymo’s counterargument is that it hasn’t focused on cost because safety is the priority, and the cost of the vehicles doesn’t matter as much if they are to be used in an internal ride-hailing fleet.
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