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.
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