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The new Apple Vision Pro headset is displayed during the Apple Worldwide Developers Conference on June 05, 2023 in Cupertino, California.
Justin Sullivan | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our new, 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
- Stock markets rallied last week on optimism around artificial intelligence. But economists are warning that investors are ignoring a “laundry list” of potential risks. The Nasdaq is “very expensive,” warned Zurich-based GAM Investments, while Morgan Stanley expects stocks to perform below average on sharp downgrades to earnings forecasts.
- PRO May’s jobs report showed the U.S. labor market is still surprisingly strong. But that doesn’t mean a recession isn’t coming, writes CNBC’s Jeff Cox, because “the jobs market is always the last to know” about a recession.
The bottom line
Before the generative artificial intelligence craze swept markets, investors were caught up in two other technology trends: cryptocurrency and the metaverse. But the latter two received tepid — or downright negative — reactions yesterday.
Prior to Apple’s keynote at its Worldwide Developers Conference, anticipation over the company’s yet-to-be-unveiled headset reached such a fever pitch that Apple shares hit an all-time high of $184.95, pushing it close to a $3 trillion market capitalization. Investors were hoping Apple could save the metaverse — the idea of a shared, immersive and virtual space — which has been struggling to attract attention and users.
Yet after the announcement and demonstration of the Vision Pro headset, investors seemed doubtful that even Apple, which has a history of revolutionizing products like the personal computer, smartphone and tablet, seemed up to the task. Apple’s shares lost momentum and ended the day lower. The metaverse, then, remains less a communal gathering space than a black hole into which money disappears.
As for the cryptocurrency industry, investors weren’t so much disappointed by its lack of promise than scared off. After news broke that the SEC is suing Binance, cryptocurrency prices sank dramatically. Bitcoin dropped 5.32% to $25,769, its lowest since March; ether lost around 5% to $1,810.77; and Binance Coin — a currency used on Binance’s exchange — fell up to 10%. Coinbase, a rival cryptocurrency exchange, was caught in the aftermath too. Its shares tumbled 9.05%.
Major stock indexes fell marginally amid the rocky day for tech. The S&P 500 lost 0.2%, giving up gains that brought it to its highest intraday level in nine months. The Dow Jones Industrial Average slid 0.59%. And even though Apple’s augmented-reality headset promises to make apps three-dimensional, the tech-heavy Nasdaq Composite was essentially flat.
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