Breaking News: Nasdaq Plummets as Nvidia Slump Triggers Stock Market Red Sea Ahead of Economic Data
In a shocking turn of events, the Nasdaq experienced its largest one-day slump since the August global selloff, with Nvidia's downfall sending shockwaves through the stock market. This comes just ahead of a crucial week filled with economic data releases, including the highly anticipated monthly jobs report that will play a key role in shaping the Federal Reserve's rate decision later this month.
At the closing bell, the Nasdaq dropped a staggering 3.3%, marking its biggest selloff since August 5. The Dow Jones Industrial Average fell 626 points, or 1.5%, while the S&P 500 dropped 2.1%.
Tech giant NVIDIA Corporation (NASDAQ:) led the charge lower, plummeting more than 9% and dragging chip stocks and the broader tech sector down with it. The company's recent earnings report raised concerns about slowing growth, sparking a wave of selling in the tech industry.
Amidst the chaos, Super Micro Computer (NASDAQ:) managed to defy the odds, rising over 1% after reassuring investors that its Q4 and FY 2024 earnings results would remain unaffected despite a delay in filing its annual Form 10-K.
Investors are now turning their focus to the upcoming labor market data releases, with Wednesday's ADP employment report, Thursday's weekly jobless claims report, and Friday's highly anticipated jobs report on the horizon. The previous month's lackluster labor report led to a sharp sell-off in risk assets, and all eyes are now on the August jobs report to gauge the health of the labor market.
Some experts on Wall Street believe that the weakness in July was just the beginning of a downward trend in the labor market, potentially prompting the Fed to deliver a larger 50 basis point rate cut. Market expectations currently point towards a 69% chance of a 25 basis point cut and a 31% probability of a 50-bps cut when the Fed meets on September 17-18.
In other news, United States Steel Corporation (NYSE:) saw a sharp decline of over 6% after Vice President Kamala Harris expressed opposition to the sale of the company to Japan's Nippon Steel, emphasizing the importance of maintaining strong American steel companies. Additionally, Boeing Co (NYSE:) tumbled more than 7% following a downgrade from Wells Fargo, citing concerns about peak free cash flow expected to occur in 2027.
In conclusion, the stock market is facing significant turbulence as investors brace for a slew of economic data releases and potential rate cuts by the Federal Reserve. It's crucial for individuals to stay informed and monitor these developments closely to make informed decisions about their investments and financial well-being.
