Nvidia posts a seventh straight loss as SoftBank prepares a 1 trillion yen OpenAI bond
The Nasdaq fell 0.76 per cent and Nvidia lost 2.9 per cent on a seventh down day. SoftBank plans a 1 trillion yen OpenAI bond at 4.3 per cent to 4.9 per cent.
Economics & Markets··Morning
Defensive shares lift the Dow as Nvidia falls 2.9 per cent
The Nasdaq fell 0.76 per cent to 25,980 and the S&P 500 slipped 0.28 per cent to 7,653, while the Dow Jones rose 0.26 per cent to 53,417. Nvidia lost 2.9 per cent before its results on Wednesday. The move was Nvidia's seventh straight down day. Micron fell 5.8 per cent, AMD more than 3 per cent and Broadcom more than 2 per cent. Gold closed 0.76 per cent higher at 4,650.64 dollars and the 10-year Treasury yield eased 0.03 points to 4.70 per cent. Investors are waiting for this week's inflation data and the Jackson Hole meeting.[1]
SoftBank plans a 1 trillion yen OpenAI bond with coupons of 4.3 per cent to 4.9 per cent
SoftBank Group plans to sell 1 trillion yen, or 6.3 billion dollars, of retail bonds to fund its investment commitments to OpenAI. According to the company's filing, it would be the largest retail bond sale by any issuer in Japan. The seven-year bonds are expected to be priced on 4 September with an indicative coupon range of 4.3 per cent to 4.9 per cent. The sale is the latest step in a race to raise money for artificial-intelligence infrastructure. On Monday Alibaba raised 80 billion Hong Kong dollars in the city's largest secondary share sale to fund chip and data-centre spending.[2]
Chip shares fall ahead of Nvidia's results while SoftBank borrows for OpenAI
Nvidia lost 2.9 per cent on a seventh straight down day before its results on Wednesday, and the Nasdaq fell 0.76 per cent to 25,980. SoftBank Group plans a 1 trillion yen, or 6.3 billion dollars, seven-year retail bond for OpenAI commitments, with an indicative coupon range of 4.3 per cent to 4.9 per cent expected to be priced on 4 September. The same session sent Micron down 5.8 per cent. On Monday Alibaba raised 80 billion Hong Kong dollars in a secondary share sale for chips and data centres.[1], [2]
