US stocks took a sharp downturn on Tuesday as technology shares faltered and new economic data reignited concerns about the health of the economy.
The Dow Jones Industrial Average fell by 626.15 points, or 1.51 per cent, closing at 40,936.93. The S&P 500 dropped 2.12 per cent to end the day at 5,528.93, while the Nasdaq Composite plunged 3.26 per cent, settling at 17,136.30. All three indexes recorded their worst performances since the global sell-off on August 5.
Turning to US sectors, Tech was the worst performer on the day, plunging 4.43 per cent, whilst Energy, Communications, Materials and Industrials all closed over 2 per cent lower.
Technology stocks, particularly in the semiconductor sector, weighed heavily on the market. Nvidia, a high-flyer in the chip industry, dropped more than 9 per cent. It’s the largest one-day market cap loss for any US company on record, exceeding Meta Platform’s $232 billion decline on Feb. 3, 2022.
Other semiconductor companies, including Micron, KLA, and Advanced Micro Devices, also experienced declines. The VanEck Semiconductor ETF (SMH) fell over 7 per cent, leading the S&P 500’s information technology sector to its worst day since September 2022.
Boeing shares sold off more than 8 per cent, dragging the Dow Industrials lower, after a Wells Fargo downgrade to underweight from equal weight.
The Vix index, popularly known as “Wall Street’s fear gauge”, rose from 15.6 to 20.7, climbing above its long-term average to its highest level in three weeks.
The Vvix, which shows expectations of swings in the Vix itself, jumped from 94 to 130, suggesting investors were wary of further volatility.
Investors now turn their attention to the first major economic release of September, the US government’s August jobs report, due out on Friday. Additionally, Wall Street faces seasonal challenges, as September has historically been the worst month for the S&P 500 over the past decade.
Futures
The SPI futures are pointing to a 1.2 per cent fall.
Currency
One Australian dollar at 7.30am was buying 67.91 US cents.
Commodities
Gold has lost 0.18 per cent. Silver has dropped 2.74 per cent. Copper has lost 2.84 per cent. Oil has dropped 4.36 per cent.
Figures around the globe
European markets closed lower. London’s FTSE lost 0.78 per cent, Frankfurt fell 0.97 per cent, and Paris closed 0.93 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei lost 0.04 per cent, Hong Kong’s Hang Seng fell 0.23 per cent, while China’s Shanghai Composite closed 0.29 per cent lower.
Yesterday, the Australian share market closed 0.08 per cent lower at 8103.
Ex-dividends
Australian Clinical Labs (ASX:ACL) is paying 9 cents fully franked
Ashley Services Grp (ASX:ASH) is paying 0.24 cents fully franked
Clearview Wealth Ltd (ASX:CVW) is paying 1.7 cents fully franked
Engenco Limited (ASX:EGN) is paying 0.5 cents unfranked
Fortescue Ltd (ASX:FMG) is paying 89 cents fully franked
Helia Group Limited (ASX:HLI) is paying 15 cents fully franked
Lifestyle Communit. (ASX:LIC) is paying 5 cents fully franked
Meridian Energy (ASX:MEZ) is paying 13.2079 cents unfranked
Mayfield Childcr Ltd (ASX:MFD) is paying 0.5 cents fully franked
Medibank Private Ltd (ASX:MPL) is paying 9.4 cents fully franked
Newmont Corporation (ASX:NEM) is paying 26.5353 cents unfranked
Pacific Grp Ltd (ASX:PAC) is paying 23 cents unfranked
Pro Medicus Limited (ASX:PME) is paying 22 cents fully franked
Praemium Limited (ASX:PPS) is paying 1 cents fully franked
Qualitas Re Income (ASX:QRI) is paying 1.1689 cents unfranked
Ramsay Health Care (ASX:RHC) is paying 40 cents fully franked
Seek Limited (ASX:SEK) is paying 16 cents fully franked
Sonic Healthcare (ASX:SHL) is paying 63 cents unfranked
Servcorp Limited (ASX:SRV) is paying 13 cents 20 per cent franked
Shaver Shop Grp Ltd (ASX:SSG) is paying 5.5 cents fully franked
Universal Store (ASX:UNI) is paying 19 cents fully franked
Whitehaven Coal (ASX:WHC) is paying 13 cents fully franked
Dividends payable
Magellan Financial Group Ltd (ASX:MFG)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
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