US Markets
Tuesday, September 3rd, 2024 4:22 pm EDT
Key Points
- Stock Market Decline: Major U.S. stock indices, including the Dow Jones, S&P 500, and Nasdaq Composite, experienced significant declines due to struggles in technology stocks, particularly in the semiconductor sector, with Nvidia leading the downturn.
- Economic Data Concerns: Weak manufacturing data from S&P Global and the Institute for Supply Management heightened fears of slowing U.S. economic growth, contributing to the market’s volatility and sharp reactions to economic indicators.
- September Market Challenges: The market’s poor performance on the first trading day of September aligns with historical trends, as September has been a challenging month for stocks. Investors remain cautious ahead of upcoming economic reports, including the August jobs report.
On Tuesday, U.S. stocks experienced a significant decline, driven by struggles in the technology sector and renewed concerns about the economy. The Dow Jones Industrial Average dropped 460 points (1.1%), the S&P 500 fell 1.4%, and the Nasdaq Composite decreased by 2.4%. A key factor in this downturn was the sharp 6% drop in Nvidia’s stock, a leader in the semiconductor sector, which affected other chipmakers like Micron, KLA, and AMD, causing the VanEck Semiconductor ETF to fall over 4%.
The market’s decline was further exacerbated by disappointing economic data. Two key indicators of U.S. manufacturing activity showed unexpected weakness in August. S&P Global’s index revealed a drop in manufacturing from July to August, and the Institute for Supply Management’s index came in below economists’ expectations. This renewed worries about a slowing U.S. economy, leading to a heightened sense of market volatility as investors reacted sharply to economic data.
This downturn followed a generally positive August for the major indexes, despite early concerns about a potential recession and the unwinding of a popular hedge fund trade involving the Japanese yen. Although the S&P 500 had been down more than 7% at one point in August, it managed to close the month with gains, raising hopes for continued momentum into September. However, historical data suggests that September has been a challenging month for stocks, with the S&P 500 historically experiencing declines during this period.
In addition to these broader market movements, specific stocks also saw notable action. Cleanspark, a crypto miner, dropped over 13% after reporting a decline in bitcoin production. On the other hand, Vaxcyte surged by about 36% following positive results from a study on its pneumococcal vaccine candidate, and Unity Software gained 6% after an upgrade from Morgan Stanley.
As the first major economic report of September approaches, with the U.S. jobs report due on Friday, investors remain cautious. Seasonal headwinds, coupled with ongoing concerns about economic growth and potential interest rate changes, are likely to keep markets on edge. Additionally, Morgan Stanley has predicted minimal stock market returns in the coming months unless there are significant positive changes in economic policy or unexpected strength in the economy.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/09/02/stock-market-today-live-updates.html
