Stock market today: Nasdaq gets off to a rough start to September as Nvidia continues to sell off

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U.S. stocks fell on Tuesday to kick off a historically difficult month for markets, as AI drove Nvidia (NVDA) stock and chip stocks down. Meanwhile, the focus was on a week of data on the economy and labor market highlighted by a key monthly jobs report.

The Dow Jones Industrial Average (^DJI) slipped 1%, or over 400 points. The S&P 500 (^GSPC) fell 1.4%, while the tech-heavy Nasdaq Composite (^IXIC) retreated 2.4%.

Stocks are retreating from the highs as Wall Street slumps after a swing in August, and a stormy September may be ahead. Investors are assessing the risk of data shocks or presidential race surprises in what is typically a terrible month for traders.

Early trading on Tuesday did not provide a bullish outlook. Nvidia ( NVDA ) fell more than 7% on Tuesday, as investors continue to pull back after a lackluster earnings report and lingering questions about the future of AI trading. Other chip stocks fell at the same time, with Broadcom (AVGO), Qualcomm (QCOM), and Taiwan Semiconductor Manufacturing Company (TSM) down more than 5%.

There is also the August jobs report, due out on Friday, on the subject of concerns that could affect how deeply the Federal Reserve cuts interest rates at its meeting this month. With inflation now cooling, policymakers are wary of a labor market collapse.

For investors, the focus is on whether the signs of a slowdown in the July jobs report were exaggerated – or an early warning of a wider slowdown. Any hints of stress should put pressure on the Fed to cut rates further. As of Tuesday, traders were pricing in 31% odds of a 50 basis point cut instead of 25 basis points, according to CME’s FedWatch Tool.

A measure of US manufacturing ticked up last month, according to fresh figures from the Institute for Supply Management (ISM). But the metric showed a slowdown in factory activity, reading below a threshold that suggests a contraction in the manufacturing sector.

Live6 updates

  • Stocks trending in afternoon trade

    Here are some of the top stocks on Yahoo Finance’s trending tickers page during Tuesday afternoon trading:

    Coinbase (COIN): The digital currency platform sank nearly 7% as many crypto-related businesses followed much of the rest of the market into the red, as fears of an economic slowdown outweighed expectations for the Fed’s expected rate cut later this month. The price of bitcoin, the main cryptocurrency further on Tuesday, hovered around the $57,000 level, pulling the expectations of the digital currency ecosystem along with it.

    Boeing (BA): The plane maker’s shares sank 6% on Tuesday morning after a price target cut by Wells Fargo, which highlighted pressure on the company’s cash flow as it works to develop new aircraft. The company also faces a potential major strike, as its workers in Washington state are set to strike if an agreement is not reached later this month.

    Nvidia (NVDA): Shares of the AI ​​chip designer fell 7% during Tuesday afternoon, continuing a slide that accelerated after the company’s earnings report last week failed to impress Wall Street. The stock is down more than 12% in the past five days, highlighting a challenging moment for stalled AI and chip companies, as questions about returns on investments from their customers mount.

    Broadcom (AVGO): Shares of the semiconductor company slipped 5% as a series of chip stocks fell in tandem with Nvidia. Qualcomm (QCOM) and Taiwan Semiconductor Manufacturing Company (TSM) were among the losers, falling close to 6%.

  • Stocks fall to start September bumpy

    US stocks fell on Tuesday to kick off a historically tough month for markets, as AI drove Nvidia’s ( NVDA ) stock and chip stocks down.

    The Dow Jones Industrial Average (^DJI) slipped 1%, or over 450 points. The S&P 500 (^GSPC) fell 1.5%, while the tech-heavy Nasdaq Composite (^IXIC) retreated nearly 2.5%.

  • Construction spending falls more than expected

    While the August employment report due on Friday is the main event for scheduled economic news this week, Tuesday offered a glimpse of construction activity, with implications for the housing market.

    The Commerce Department reported on Tuesday that construction spending fell 0.3% in July, compared to no change in the previous month. Forecast spending figures fell by just 0.1%

    The slightly larger-than-expected drop reflects higher mortgage rates and more supply.

    Due to weaker demand builders are easing new construction projects. Single-family home construction fell to a 16-month low in July.

    However, mortgage rates continued to fall in August as the rate cut expected from the Federal Reserve during the upcoming September policy meeting. Rates are expected to slide even more as potential homebuyers hold out for better rates.

    Affordability remains an issue, even as borrowing costs are likely to fall.

    Fannie Mae’s Home Purchase Sentiment Index, measuring consumer sentiment about the residential housing market, fell in July. That shows how the lack of affordability is dampening housing activity.

  • Why we are not ready for the first presidential election of the AI ​​era

    With the election just a few months away and generational AI detection technologies hit or miss, experts say we can expect to see more AI-based content designed to dissuade voters, reports Dan Howley from Yahoo Finance.

    The 2024 elections will be the first US presidential elections of the AI-powered era, and we are already seeing examples of the technology being used to influence how Americans cast their ballots.

    On August 18, former President Donald Trump shared a series of AI-generated images of Taylor Swift fans wearing pro-Trump shirts, despite the photos originally appearing in a post marked as satirical on X (formerly Twitter) . In January, deepfake phone calls went out to several New Hampshire residents, trying to dissuade them from participating in the state’s Democratic primary.

    “The danger is that if there’s a form of AI disinformation … like the Taylor Swift images … if millions of people are exposed to it and only 10% or 15% realize that it’s fake, that could be a significant number for thought. about elections,” explained Augusta University political science professor Lance Hunter.

    “[In] swing states, sometimes the margin of victory is less than 1%. So … if a small number of people are exposed to this disinformation, and they don’t understand its disinformation, the results of the election could be affected,” Hunter added.

    Read more here.

  • Stocks trending in morning trade

    Here are some of the stocks leading Yahoo Finance’s trending tickers page during Tuesday morning trading:

    Boeing (BA): The plane maker’s shares sank 6% on Tuesday morning after a price target cut by Wells Fargo, which highlighted pressure on the company’s cash flow as it works to develop new aircraft. The company also faces a potential major strike, as its workers in Washington state are set to strike if an agreement is not reached later this month.

    US Steel (X): The steel producer slipped nearly 4% after Democratic nominee Kamala Harris said the company should remain American-owned and run in the face of a proposed takeover by Japan’s Nippon Steel. Republican nominee Donald Trump also opposed the proposed sale.

    Nvidia (NVDA): Shares of the AI ​​chip designer fell 5% in morning trading on Tuesday, continuing a slide that accelerated after the company’s earnings report last week failed to impress Wall Street. The stock is down more than 10% in the past five days, highlighting a challenging moment for stalled AI and chip companies, as questions about returns on investments from their customers mount.

    unity (U): The video game software developer gained more than 7% on Tuesday after analysts at Morgan Stanley upgraded its shares to Overweight from Equal Weight, citing the strength of its game engine business and Unity’s hold on market share.

  • Stocks slide in morning trading

    US stocks fell on Tuesday to start September, a historically tough month for markets as attention turned to a week of labor data highlighted by a key monthly jobs report.

    The Dow Jones Industrial Average (^DJI) slipped about 0.5% on the heels of a winning session booked before the Labor Day break. The S&P 500 (^GSPC) fell 0.6% and the tech-heavy Nasdaq Composite (^IXIC) retreated 0.8%.

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