Nvidia’s share price crash wipes out more than $550 billion in market value

Good morning. Nvidia has lost more than $500 billion in market value since it briefly became the world’s most valuable company last week after shares fell nearly 7 percent yesterday.

Nvidia, whose earnings alone accounted for about a third of the S&P 500’s rise in 2024, is now about 16 percent below its intraday high of $140.76 last Thursday.

Concerns about the company’s impact on the broader index – it is up nearly 140 percent through 2024 – have intensified in recent weeks, with some analysts warning that a large enough sell-off at the chipmaker could trigger a broader market collapse.

Yesterday’s share price drop followed Friday’s revelations that the chipmaker’s CEO and co-founder, Jensen Huang, sold nearly $95 million worth of stock in the days just before and after overtaking Microsoft and Apple to become the world’s most valuable company. Read the full story.

And here’s what I’m keeping an eye on today:

• Imperial visit: King Charles and Queen Camilla receive Japanese Emperor Naruhito and Empress Masako during their state visit to the United Kingdom.

• French debate: Ahead of the French parliamentary elections, Prime Minister Gabriel Attal will face Rassemblement National President Jordan Bardella and left-wing Alliance leader Manuel Bompard in a televised debate.

• Companies: The cruise operator Carnival and the US logistics giant FedEx report. The British insurance and travel group Saga holds its annual meeting.

Five more top stories

1. Labour is diverting its activists from the conservative seats targeted by the Liberal Democrats to constituencies far from where they live, a strategy likely to maximise Tories’ losses in the south of England. Volunteers in Somerset have been advised to drive more than 80 miles to Plymouth, while London activists have been advised to ignore Liberal Democrat targets in the south-west of the capital, Labour campaign data shows. Read more from the Financial Times analysis of Labour’s strategy to inflict losses on the Tories.

Join Political Fix presenter Lucy Fisher on 5 July at 13:00 GMT+1 as she analyses the election result with Inside Politics writer Stephen Bush, political editor George Parker and columnists Robert Shrimsley and Miranda Green. Register here and ask the panel your questions.

2. Legislative paralysis in Washington threatens to trigger a global tax war as countries brace for the likely failure of a landmark agreement to overhaul the taxation of large multinational corporations. With a self-imposed deadline of June 30, negotiators from more than 140 countries are poised to unveil an OECD-brokered treaty text on taxing digital companies this week, beginning the long-delayed process of countries signing and ratifying the agreement.

3. Ukraine will begin negotiations to join the EU today. more than a decade after pro-Western demonstrations in Kyiv called for the country to join the Union, despite Russian threats and the military action that followed. EU ministers will meet Ukrainian politicians in Luxembourg to officially launch a process that will take years but represents a highly symbolic moment for the country.

• Military restructuring: President Volodymyr Zelenskyy dismissed Yuri Sodol, the commander of the Joint Forces, shortly after complaints about his conduct.

• Viktor Orban: European capitals are currently working on ways to protect EU decisions from the increasing veto power of the Hungarian Prime Minister.

4. Premier League football clubs are expected to report record revenues next season. due to format changes in European competitions, including the Champions League, as well as higher ticket prices, stadium capacities and international broadcast deals. Here’s how much they’re expected to make in the 2024-25 season.

5. WikiLeaks founder Julian Assange has negotiated a deal with US prosecutors This would end his lengthy legal battle over one of the largest leaks of classified materials in US history. The settlement is expected to allow him to be released after years of detention and imprisonment. Read the full story.

The great reading

A massive project by ExxonMobil to expand one of the largest offshore oil productions in history could make Guyana the world’s last oil state – just as policymakers worldwide are pledging to move away from fossil fuels. More than $55 billion in investment has been approved to extract just under half of the roughly 11 billion barrels of reserves. But critics fear the oil boom could make the South American country a victim of the “resource curse.”

We also read and listen …

Chart of the day

Artificial intelligence-created “deepfakes” imitating politicians and celebrities are far more common than attempts to use AI to aid cyberattacks, according to the first study by Google’s DeepMind division into the most common malicious uses of this cutting-edge technology.

Take a break from the news

Boswells of Oxford was one of England’s oldest department stores, selling luggage and toys, among other things, since 1738. Today, the venerable family-owned retailer has become “The Store,” a 100-room hotel with a rooftop bar offering towering views.

Additional contributions by Gordon Smith and Emily Goldberg