Nasdaq leads declines as stocks continue to fall

US tech stocks continued to suffer losses on Wednesday morning, following a sharp sell-off fueled by concerns about economic growth and AI trading, while shares of Nvidia (NVDA) fell.

The S&P 500 (^GSPC) fell about 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) led the losses, declining about 0.7%. Meanwhile, the Dow Jones Industrial Average (^DJI) added just under 0.1%.

Stocks are pulling back as Nvidia shares fall, an indication that confidence in the AI ​​boom that has driven much of this year’s gains is seeping from the market. The AI ​​giant lost $279 billion in market value on Tuesday and its shares were down more than 2% on Wednesday morning after U.S. regulators reportedly intensified an antitrust investigation.

At the same time, concerns about cracks in the U.S. economy have been revived somewhat after a tepid reading on factory activity. Investors are keeping a close eye on the new data as they calibrate the likely size of the Federal Reserve’s rate cut expected in a few weeks.

The rocky start to September has investors bracing for more volatility as a historically tough month for stocks follows a turbulent August. While markets managed to shake off the month’s losses, analysts suggest equities may not yet have recovered.

A reading on job openings expected later Wednesday will shed light on the labor market and the chances of a “soft landing” for the economy. The print will serve as a primer for the much-anticipated August jobs report on Friday, which is likely to influence the Fed’s policy decisions.