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Market Volatility: Stocks Wobble as September Begins
As September begins, the U.S. stock market has started on a negative note, with major indices experiencing significant declines. The S&P 500 saw its largest drop since early August, while the Dow Jones Industrial Average fell by over 600 points, or 1.5%. The Nasdaq Composite also dropped by 3.3%.
The decline in the market is largely attributed to investor concerns over disappointing manufacturing data and the potential impact of interest rate reductions from the Federal Reserve. This has led to a sell-off in technology shares, particularly in the semiconductor sector. Nvidia, a leading AI company, saw its stock plummet by over 9%, resulting in a loss of nearly $300 billion in market capitalization.
In contrast, packaged goods stocks have experienced dramatic surges, which some analysts believe may not be fully justified. This could be a result of investors bracing for a sluggish economy and seeking safer investments.
The market is also reacting to news that the U.S. Justice Department has issued subpoenas to Nvidia, further contributing to the downturn in the semiconductor sector.
Despite the current volatility, some investors see this as an opportunity to rebalance their portfolios and take advantage of lower stock prices. Chris Hyzy, the chief at Bank of America Private, noted that the next eight weeks could be a chance to "rebalance your portfolio, diversify, and actually let market activity work in your favor".
In the coming days, traders will be closely watching the release of corporate earnings reports from retailers such as Dick's Sporting Goods and Dollar Tree, as well as data on U.S. trade, job turnover, and factory orders.
Original Article: https://www.cnbc.com/2024/09/03/stock-market-today-live-updates-.html
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