Breaking News: U.S. Stock Futures Indicate Lower Opening After Tech and Energy Sectors Lead Downturn - What Investors Need to Know
As the market closed on Tuesday, U.S. equity futures pointed towards a lower opening after major indices experienced significant losses. The Information Technology and Energy sectors were the main drivers of this downturn.
At 18:30 EST (22:30 GMT), the Nasdaq futures edged down by 0.1%, while S&P 500 futures also decreased by 0.1%. On the other hand, Dow futures remained unchanged, and Russell 2000 futures saw a slight decline of 0.4%.
The equity selloff was triggered by manufacturing data that raised concerns about the economic outlook. The Dow Jones Industrial Average lost 626.15 points, the S&P 500 fell 119.47 points, and the Nasdaq declined by 577.33 points.
In a historic move, NVIDIA Corporation (NASDAQ:) stock suffered its biggest one-day drop ever, wiping out $279 billion in market cap. This was due to reports of an investigation by the FTC into Nvidia and other companies, which led to a 1.4% drop in Nvidia's shares during after-hours trading.
Investors are now eagerly awaiting the crucial U.S. jobs report due on Friday, which is expected to provide insights into the health of the American economy and could influence the Federal Reserve's decisions on interest rates.
In individual stock movements, Zscaler Inc (NASDAQ:) shares dropped by 14%, Asana Inc (NYSE:) stock fell by 12%, and Pagerduty Inc (NYSE:) saw a 12% decline in its shares. On a positive note, Clover Health Investments Corp (NASDAQ:) shares surged by 20%, and Gitlab Inc (NASDAQ:) stock increased by 14%.
The upcoming August U.S. jobs report will play a key role in the Federal Reserve's decision on whether to implement a rate cut of 25 basis points or 50 on September 18. Stay tuned for more updates on the market and how these developments could impact your investments and financial decisions.
