CNBC Daily Open: Nvidia rallies after sell-off, lifts S&P 500 and Nasdaq

This report is from today's CNBC Daily Open, our 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 .

Nvidia sparks rally
The S&P 500 and the Nasdaq Composite snapped a three-day slide as Nvidia rebounded from a sell-off. The Dow Jones Industrial Average dropped almost 300 points as Boeing, Goldman Sachs and Home Depot all declined. The yield on the 10-year Treasury was unchanged ahead of key inflation data on Friday. U.S. oil prices fell 1% as investors monitored Middle East tensions and summer demand for gasoline. 

Rivian stake
Volkswagen will invest up to $5 billion in electric vehicle startup Rivian, which had been under pressure due to losses and cash burn. VW will initially invest $1 billion and the remainder over the coming years as Rivian prepares to launch updated models. Volkswagen is the second legacy automaker after Ford to invest in Rivian — the Detroit automaker sold the majority of its stake in 2023 after deciding not to build vehicles with the startup. Shares of Rivian soared 40% in after-hours trading.

Trump inflation warning
Sixteen Nobel Prize-winning economists signed a joint letter Tuesday warning of what they see as economic risks if former President Donald Trump were to serve a second term, including 'reignite' inflation. "While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden's economic agenda is vastly superior to Donald Trump's," the economists wrote. "There is rightly a worry that Donald Trump will reignite this inflation, with his fiscally irresponsible budgets," they said.

Rate hike?
Federal Reserve Governor