CNBC Daily Open: Jackson Hole fears overshadow Nvidia

Rally fizzles out
U.S. stocks closed lower Thursday arsenic an earlier Nvidia-sparked rally fizzled out, portion Treasury yields climbed higher. The pan-European Stoxx 600 tumbled 0.4%, ending 3 consecutive days of gains. Separately, Turkey hiked involvement rates from 17.5% to 25%, much than the expected 20%. The lira jumped connected the news.

Muted effect to Nvidia
Nvidia shares inched up conscionable 0.1% Thursday, paring earlier gains of arsenic overmuch arsenic 8% erstwhile it touched a grounds precocious of $502. That's contempt the institution reporting an astounding net beat aft the doorbell Wednesday. Nvidia's results scared investors distant from competitors arsenic well: Shares of AMD slumped 7%, portion that of Intel sank 4.1%.

Dog days of August
August is surviving up to its estimation arsenic a horrid period for stocks. The S&P 500 is down much than 3% truthful far, connected gait to drawback a five-month winning streak, portion the Nasdaq Composite is headed for its biggest one-month nonaccomplishment since December. Low trading volumes, economical weakness successful China and precocious Treasury yields are each contributing to the August sell-off, writes CNBC's Fred Imbert.

Building BRICS
The BRICS conjugation — which comprises Brazil, Russia, India, China and South Africa — extended invitations to six nations. Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates volition articulation BRICS connected Jan. 1, 2024. A full of 23 countries, including the six acceptable to articulation the coalition, person formally applied for membership.

[PRO] A single-stock ETF play
Exchange-traded funds typically way a handbasket of stocks belonging to a circumstantial sector, similar banks oregon semiconductors. This ETF, however, consists of conscionable 1 banal — and aims to present a 1.5-times instrumentality connected a regular basis. What's more, it's had a return of much than 400% twelvemonth to date.

Even Nvidia's blockbuster net couldn't quell capitalist anxiousness implicit Jackson Hole.

Nvidia shares roseate conscionable 0.1% contempt reporting a 422% year-over-year surge successful nett income. Perhaps investors, bursting with enthusiasm implicit the chipmaker, had already priced successful the grounds revenue. Perhaps investors wanted to currency retired aboriginal aft Nvidia's shares deed a grounds precocious earlier successful the time — investors person been bracing for a atrocious August, and an adjacent worse September, which is historically the worst period for stocks. Or possibly investors were disquieted astir Federal Reserve Chair Jerome Powell's code astatine Jackson Hole.

(To beryllium clear, analysts inactive deliberation Nvidia's shares volition popular successful the agelong run. Rosenblatt accrued its terms target from $800 to $1,100, a caller precocious among Wall Street analysts and an implied 133% upside from Thursday's close. Big Wall Street banks similar Goldman Sachs, Citi and Bank of America were much blimpish than that, but inactive hiked their targets for Nvidia.)

Last year, the S&P 500 mislaid 2% successful the 5 trading days earlier Powell's Jackson Hole speech, and stumbled 5.5% successful the 5 after, according to DataTrek Research. This time, investors are "worried astir what [Powell] mightiness accidental astir r-star and embracing, precocious caller mean rates," said Krishna Guha, caput of planetary argumentation and cardinal slope strategy for Evercore ISI. R-star is the worth astatine which involvement rates neither stimulate nor restrict the economy. In different words, investors are acrophobic the Fed mightiness not chopped involvement rates that overmuch adjacent aft ostentation subsides.

History, then, repeated itself. One time earlier Powell's speech, stocks fell sharply. The S&P retreated 1.5% and the Nasdaq shed 1.87%, the biggest one-day nonaccomplishment since Aug. 2 for some indexes. The Dow Jones Industrial Average slipped 1.08%, its worst time since March. Technology stocks, due to the fact that of their sensitivity to involvement rates, were the biggest losers of the day: Amazon mislaid 2.7% and Apple dropped 2.6%. With conscionable 1 week near earlier August draws to a close, it seems marketplace sentiment isn't apt to alteration soon, adjacent with earth-shattering reports similar Nvidia's.

— CNBC's Jeff Cox contributed to this report