US Futures and Nvidia's Record Drop
On a day marked by significant market activity, US equity futures edged down by 0.1% at 18:30 EST (22:30 GMT), signaling a lower opening. This movement followed a substantial market loss of more than 2.1% on Tuesday, primarily driven by downturns in the Information Technology and Energy sectors.
Market Overview and Sector Impact
The Dow Jones Industrial Average dropped by 626.15 points, or 1.51%, closing at 40,936.93. The S&P 500 decreased by 119.47 points, or 2.12%, ending at 5,528.93. Furthermore, another market index saw a decline of 577.33 points, or 3.26%, to 17,136.30. These drops were largely fueled by unfavorable manufacturing data that sparked concerns about the economic outlook.
Nvidia's Historic Drop
In a dramatic turn of events, NVIDIA Corporation experienced its biggest one-day drop ever, losing $279 billion in market cap. This was exacerbated by reports of an investigation into the company, causing Nvidia shares to dip by an additional 1.4% in after-hours trading.
Impacts and Investor Sentiment
Market volatility continues as investors brace for the U.S. jobs report due on Friday, a key indicator of the economy's health that could influence the Federal Reserve's future interest rate decisions.
Individual Stock Movements
Several stocks experienced notable movements:
- Zscaler Inc.: Shares fell by 14% despite claims of a conservative outlook.
- Asana Inc.: The stock decreased by 12% following a challenging quarter and a CFO change.
- Pagerduty Inc.: Shares dropped 12% after revising its revenue forecast downwards.
Positive Highlights
- Clover Health Investments Corp.: Shares soared by 20% as its Counterpart Unit secured a contract with the Iowa Clinic.
- Gitlab Inc.: The stock rose 14%, buoyed by strong results and an optimistic forecast.
Investors are keenly anticipating the August U.S. jobs report, which could significantly sway the Federal Reserve's decision on whether to implement a 25 or 50 basis point rate cut on September 18.
