Traders were active on the floor of the New York Stock Exchange Tuesday morning as technology stocks faltered and new economic data sparked fears about the economy’s health. The Dow Jones Industrial Average declined by 626.15 points, or 1.51%, closing at 40,936.93. The S&P 500 dropped 2.12% to finish at 5,528.93, and the Nasdaq Composite fell 3.26% to 17,136.30, marking its worst trading day since the global sell-off on August 5.
A significant factor in the market’s decline was Nvidia, a leading player in the artificial intelligence sector, which saw its stock fall over 9%. Other semiconductor stocks such as Micron, KLA, and Advanced Micro Devices also faced declines. The VanEck Semiconductor ETF (SMH) slid over 7%, marking the worst day for the tech sector since September 2022.
The market’s initial downturn came after two reports indicated a slowdown in manufacturing production. S&P Global’s data showed a decline from July to August, and the Institute for Supply Management’s figures came in below economists’ expectations. These reports reignited worries about slowing U.S. economic growth, which had triggered a notable sell-off earlier in August.
Larry Tentarelli, chief technical strategist at the Blue Chip Trend Report, noted the market’s sensitivity to incoming data, describing it as “very jumpy.”
These moves come at the beginning of a new trading month, following gains in August. The U.S. markets were closed Monday for Labor Day. While there was some optimism heading into September, concerns over a potential recession and the unwinding of trades involving the Japanese yen caused stock declines in early August. The S&P 500 had been down over 7% for the month before its recovery.
Investors are now eyeing the upcoming U.S. August jobs report, set to be released Friday. Additionally, seasonal trends could pose challenges, as September has historically been the worst month for the S&P 500 over the past decade.
Original Story https://www.cnbc.com/2024/09/02/stock-market-today-live-updates.html
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