London Mail
  • Home
  • World
  • News
  • Opinion
  • Business
  • Tech
  • Science
  • Sports
  • Lifestyle
  • Health
  • Motering/Cars
  • More
    • Entertainment
    • Travel
    • Crypto
    • Food
    • Home Improvment
      • Real Estate
    • Press Release
No Result
View All Result
  • Home
  • World
  • News
  • Opinion
  • Business
  • Tech
  • Science
  • Sports
  • Lifestyle
  • Health
  • Motering/Cars
  • More
    • Entertainment
    • Travel
    • Crypto
    • Food
    • Home Improvment
      • Real Estate
    • Press Release
No Result
View All Result
London Mail
No Result
View All Result
Home Business

$279bn wiped off Nvidia stock in Wall Street sell-off

by London Mail
September 7, 2024
in Business
Reading Time: 3 mins read
0
SHARES
Share on FacebookShare on Twitter

American stock markets fell on Tuesday after manufacturing in the world’s largest economy contracted for a fifth month in a row.

Some $279bn was wiped off the value of artificial intelligence giant Nvidia, as its shares dropped by 9.5pc, helping to pull down the index of 30 leading US chipmakers by 7.8pc.

It came less than a week after Nvidia’s quarterly financial results and forecasts disappointed investors, despite its sales doubling.

On Wall Street, all three major indexes suffered their biggest daily declines since Aug 5.

The Dow Jones Industrial Average fell 1.5pc, the S&P 500 lost 2.1pc, and the Nasdaq Composite lost 3.3pc.

August manufacturing data from the Institute for Supply Management (ISM) pointed to ongoing challenges in the sector, which has now been in contraction for 21 out of the past 22 months.

The institute’s purchasing managers’ index (PMI) data gave a reading of 47.2 in August, up marginally from the 46.8 percent recorded in July. Anything below 50 indicates contraction.

“Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty,” said Timothy Fiore of the ISM.

Worries about a slowing US economy helped send stocks on a scary summertime swoon early last month, but financial markets later rebounded on hopes that the Federal Reserve could pull off a soft landing for the economy.

Sam Stovall, chief investment strategist at CFRA Research, said that the today’s market reaction is “just speculation about the Fed. If there is any kind of economic weakness, investors believe the Fed will respond by lowering interest rates more aggressively.”

After jacking its main interest rate to a two-decade high to beat high inflation, the Fed looks set to ease interest rates later this month in hopes of easing conditions for the economy and avoiding a recession.

Many traders are anticipating the Fed will deliver a full percentage point of cuts to interest rates this year, which is a “recession-sized” amount, according to a Bank of America Global Research report.

The fall in share prices came as traders await a number of labour market reports due during the week, ahead of Friday’s non-farm payrolls data for August.

The jobs market has come under greater scrutiny, after July’s report hinted at a greater-than-expected slowdown, that consequently sparked a global selloff in riskier assets.

On Friday, closely watched US jobs data is expected to influence the Federal Reserve’s take on the American economy and when it will start lowering interest rates. The move will have repercussions through global markets.

Stephen Innes, analyst at SPI Asset Management, warned that Friday’s data “is shaping up to be a significant litmus test”.

He said: “A stronger-than-expected payroll number, paired with a lower unemployment rate, could inject some much-needed confidence into the market, signaling that growth risks might be easing, at least for now.

“If the report disappoints, especially if it pushes the unemployment rate higher, we could quickly see growth concerns flare up again.”

Analysts cautioned investors that September is typically a poor month for US stocks. Sam North, of investment platform eToro, said: “September has historically been a challenging month for US stocks. Between 1928 and 2023, the S&P 500’s return in September is -1.17pc on average.”

Read the latest updates below.

Source link

Related Posts

The Government needs to Wise up over stock market decline – and soon
Business

The Government needs to Wise up over stock market decline – and soon

July 30, 2025
Minister insists fuel supplies not under threat despite oil refinery closure
Business

Minister insists fuel supplies not under threat despite oil refinery closure

July 24, 2025
UK’s ninth richest man John Fredriksen moves business out of London
Business

UK’s ninth richest man John Fredriksen moves business out of London

July 21, 2025
Next Post
Parents of baby murdered by Lucy Letby blast calls for her to be freed from jail as ‘sick’ and say ‘traumatic’ campaign fuelled by misinformation has made them ‘question humanity’

Parents of baby murdered by Lucy Letby blast calls for her to be freed from jail as 'sick' and say 'traumatic' campaign fuelled by misinformation has made them 'question humanity'

Wall Street stocks plunge as fears grow that tech bubble has burst

Wall Street stocks plunge as fears grow that tech bubble has burst

Sydney trains: Urgent track work at Central Station sparks commuter chaos

Sydney trains: Urgent track work at Central Station sparks commuter chaos

Recommended

I have a great business idea – but how do I get started?

I have a great business idea – but how do I get started?

1 year ago
Christopher Columbus’ remains discovered after more than 500 years DNA analysis confirms

Christopher Columbus’ remains discovered after more than 500 years DNA analysis confirms

10 months ago
Paul McCartney shares his favourite Beatles song to perform live on tour | Music | Entertainment

Paul McCartney shares his favourite Beatles song to perform live on tour | Music | Entertainment

2 years ago
Nigella Lawson's two key ingredients that make Christmas puddings 'meltingly light'

Nigella Lawson's two key ingredients that make Christmas puddings 'meltingly light'

7 months ago

Categories

  • Business
  • Crypto
  • Entertainment
  • Food
  • Health
  • Home Improvment
  • Lifestyle
  • Motering/Cars
  • News
  • Opinion
  • Press Release
  • Real Estate
  • Science
  • Sports
  • Tech
  • Travel
  • World
No Result
View All Result

Highlights

Greatest Showman circus show announces Halloween extravaganza | Theatre | Entertainment

At 36, I was perfectly healthy – but there was one warning sign of deadly liver disease that I ignored. Then I made simple changes – and reversed the condition

The world’s most stressful city to visit revealed – with millions of people filling its streets every year

Fred Sirieix hosts blind taste test as Brits claim they don’t like food they haven’t tried

The £24 Dunelm seat that’s the ‘comfiest outdoor chair’ shoppers have ever sat in

Will Stockholm talks be a turning point in China-U.S. relations?

London Mail

London Mail | Stay Informed, Stay Inspired ©2025, All rights Reserved

Navigate Site

  • Home
  • About
  • Advertise
  • Contact

Follow Us

No Result
View All Result
  • Home
  • Tech
  • News
  • Business
  • Science
  • Health
  • Sports
  • Lifestyle
  • Travel
  • Opinion

London Mail | Stay Informed, Stay Inspired ©2025, All rights Reserved