10 things to watch in the stock market Monday including Nvidia and geopolitics

Global markets opened cautiously as crypto weakness persisted and geopolitical tensions remained in focus. Key corporate developments included Cantor Fitzgerald raising Nvidia's price target to $240 on strong AI demand, while Barclays cut Salesforce's target to $316 amid concerns over AI's impact on software licensing and potential activist engagement. Separately, Novo Nordisk shares climbed 3% following Wegovy's MASH approval, signaling further expansion for GLP-1 drugs, as Meta prepares a new AR device and Apple addresses tepid Vision Pro sales.

Analysis

The market is starting the week with a cautious tone, influenced by a sell-off in cryptocurrency, a slight decline in the 10-year Treasury yield to 4.295%, and significant upcoming events including the Fed's Jackson Hole retreat and key retail earnings. Geopolitical discussions involving Ukraine and Russia are also a key focus. Within the technology sector, there are divergent trends: Nvidia (NVDA) received a price target increase to $240 from Cantor Fitzgerald, citing sustained, strong demand for its AI hardware. Conversely, Salesforce (CRM) saw its price target cut to $316 by Barclays due to investor concerns over AI's potential to cannibalize software license demand, alongside the specter of renewed activist interest. In the emerging hardware space, Meta (META) is set to debut its sub-$1,000 "Hypernova" smart-glasses, while Apple's (AAPL) high-priced Vision Pro is reportedly facing lackluster sales, with a more accessible version not expected until 2027. In healthcare, Novo Nordisk (NVO) shares rallied 3% after its GLP-1 drug Wegovy gained FDA approval for treating MASH liver disease, expanding its market and highlighting a trend that competitor Eli Lilly (LLY) is also pursuing. The energy sector shows weakness, with Coterra Energy's (CTRA) price target cut to $27 at Roth Capital due to excess natural gas supply. Finally, the nuclear sector saw a positive development with Google (GOOG) and Kairos Power partnering with the TVA to power data centers with an advanced reactor by 2030.

Key Decisions for Investors

• Given the strong analyst sentiment and continued AI demand, investors could view Nvidia's outlook favorably, as current estimates may not fully reflect the Blackwell product cycle.
• Investors in Salesforce should closely monitor for evidence of AI impacting software license sales and be aware of potential volatility from renewed activist engagement.
• The expanded FDA approval for Novo Nordisk's Wegovy reinforces the growing addressable market for GLP-1 drugs, supporting the investment thesis for leaders in this space like NVO and Eli Lilly.
• Caution is advised for natural gas producers like Coterra Energy, as persistent oversupply in the commodity market presents a significant headwind.
• Consider the divergent strategies in the AR/VR space, where Meta's near-term, lower-priced product launch contrasts with Apple's current high-end, slow-burn approach with the Vision Pro.
• With the Fed's Jackson Hole meeting and major retail earnings this week, it is prudent to anticipate heightened market volatility and scrutinize guidance for shifts in consumer spending and interest rate policy.