Dow slides 600 points, Nasdaq sinks 3% as Nvidia leads chip sell-off

He lives10 updates

• Tuesday, September 3, 2024 at 4:05 PM EST

  Dow Jones loses 600 points in rough start to September

  Investors who were affected by the early August sell-off still have flashbacks of when stocks crashed on the first trading day of September.

  The Dow Jones Industrial Average (^DJI) fell 1.5%, or more than 600 points. The S&P 500 (^GSPC) fell 2.1%, while the technology-heavy Nasdaq Composite (^IXIC) fell 3.3%.

• Tuesday, September 3, 2024 at 3:30 PM EST

  Nasdaq on track for 3% loss in tough start to September

  Major indices took a beating in the first session of September, as a historically tough trading month lived up to its reputation on Tuesday.

  As investors awaited crucial economic data this week that will influence how aggressively the Federal Reserve will cut interest rates, stocks fell during the final hour of trading.

  The S&P 500 (^GSPC) is having its worst session since the selloff in early August that sparked fears of a slowing economy. Big tech names are causing most of the losses. Shares of Nvidia, known for its artificial intelligence, fell more than 9%, along with other chip stocks. The tech-heavy Nasdaq Composite (^IXIC) lost 3%.

• Tuesday, September 3, 2024 at 2:45 PM EST

  Nvidia shares fall to lowest level since mid-August

  Nvidia (NVDA) stock fell more than 8% on Tuesday as the broader market fell on the first trading day of the month.

  The artificial intelligence chipmaker was the worst performer among the Magnificent 7 stocks, falling to its lowest level since mid-August, according to Yahoo Finance data. Inas Ferry Reports.

  Technology stocks (XLK) led the declines as investors shifted to defensive sectors such as Staples (XLP) and Utilities (XLU).

  Tuesday’s drop comes less than a week after Nvidia posted quarterly results that beat consensus estimates but failed to lift the stock price.

  Until last week, Nvidia had led the recent rally in stock markets, rising about 25% in three weeks after a global market sell-off.

  Despite Tuesday’s losses, the stock is up more than 125% since the beginning of the year.

• Tuesday, September 3, 2024 at 2:17 PM EST

  Rite Aid emerged as a private company after bankruptcy.

  After completing the financial restrictions of the Chapter 11 bankruptcy, the Rite Aid drugstore chain will operate as a private company.

  Reuters reported on Tuesday that the pharmacy had closed hundreds of stores due to bankruptcy, sold its charitable company and reached settlements with its creditors.

  The company’s new status comes after Rite Aid declared bankruptcy in 2023, recording hundreds of millions of dollars in losses and facing a flood of opioid lawsuits related to allegations of ignoring warning labels on suspect prescriptions.

  The bankruptcy will significantly shrink the company’s size, compared to the 2,000 pharmacies it had at the time of filing.

  The company said all of its common stock had been cancelled, and ownership had been transferred to certain Rite Aid creditors. The report said the company had named CFO Matt Schroeder as CEO.

  In the future, the company eliminated about $2 billion in total debt and obtained financing worth about $2.5 billion.

• Tuesday, September 3, 2024 at 1:19 PM EST

  Stock Trends in Afternoon Trading

  Here are some of the stocks that topped Yahoo Finance’s financial indicators page during afternoon trading Tuesday:

  Coinbase (currency): The digital currency platform fell about 7% as a group of crypto-related companies followed the rest of the market into the red, as fears of a slowing economy outweighed the prospects of an expected interest rate cut by the Federal Reserve later this month. The price of bitcoin, the main cryptocurrency, fell further on Tuesday, around the $57,000 level, dragging the outlook for the digital currency system with it.

  BoeingBachelor’s): Shares of the aircraft maker fell 6% Tuesday morning after Wells Fargo cut its price target, highlighting the strain on the company’s cash flow as it works to develop new aircraft. The company is also facing a major potential strike, with workers in Washington state set to walk out if a deal isn’t reached later this month.

  Nvidia (NVDA program): Shares of the artificial intelligence chip designer fell 7% in afternoon trading Tuesday, continuing a slide that accelerated after the company’s earnings report last week failed to impress Wall Street. The stock has fallen more than 12% over the past five days, highlighting a difficult moment for AI and chip companies that have stalled, as questions mount about returns on investment from their customers.

  Broadcom (I am bored)Shares of the semiconductor company fell 5% as a group of chip stocks fell in tandem with Nvidia shares. Qualcomm (QCOM) and Taiwan Semiconductor Manufacturing (TSM) were among the losers, with their shares falling about 6%.

• Tuesday, September 3, 2024 at 12:31 PM EST

  Stocks fall at the start of a turbulent September

  U.S. stocks fell Tuesday at the start of a historically tough month for markets, with artificial intelligence and chip darling Nvidia (NVDA) leading technology shares lower.

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

• Tuesday, September 3, 2024 at 11:45 AM EST

  Construction spending falls more than expected

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

  Construction spending fell 0.3 percent in July, the Commerce Department reported Tuesday, compared with no change in the previous month. Expectations were for spending to fall just 0.1 percent.

  The decline in spending, which was slightly larger than expected, reflected higher mortgage rates and increased supply.

  Weak demand has prompted builders to slow the pace of new construction. Single-family homebuilding fell to a 16-month low in July.

  However, mortgage rates continued to fall in August as expectations grew that the Federal Reserve would cut interest rates at its next policy meeting in September. Rates are expected to fall further as potential home buyers wait for better prices.

  Affordability remains an issue, even as borrowing costs may fall.

  Buying a Home from Fannie Mae The sentiment index, which measures consumer sentiment toward the residential housing market, fell in July. This highlights how the lack of affordability is affecting housing activity.

• Tuesday, September 3, 2024 at 11:00 AM EST

  Why We’re Not Ready for the First Presidential Election in the Age of AI

  With the election just months away, and AI detection techniques failing, experts say we can expect to see more AI-based content designed to sow discord among voters, according to reports. Yahoo Finance Dan Hawley.

  The 2024 election will be the first US presidential election in the era of generative AI, and we are already starting to see examples of the technology being used to influence how Americans cast their votes.

  On August 18, former President Donald Trump shared a series of AI-generated images of Taylor Swift fans wearing pro-Trump shirts, despite the fact that the images originally appeared in a post labeled Sarcasm on X (formerly Twitter)In January, spoofed phone calls were made to some New Hampshire residents, in an attempt to dissuade them from participating in the state’s Democratic primary.

  “The risk is that if there’s some kind of AI-powered disinformation… like the Taylor Swift pictures… if millions of people are exposed to it and only 10 or 15 percent realize it’s fake, that could be a big number to think about in an election,” says Lance Hunter, a political science professor at Augusta University.

  “In swing states, the margin of victory is sometimes less than 1 percent,” Hunter added. “So a small number of people being exposed to this misinformation and not realizing it’s misinformation could have an impact on the outcome of the election.”

  Read more here.

• Tuesday, September 3, 2024 at 10:15 AM EST

  Stock Trends in Morning Trading

  Here are some of the stocks that topped Yahoo Finance’s financial indicators page during Tuesday morning trading:

  BoeingBachelor’s): The aircraft maker’s shares fell 6% Tuesday morning after Wells Fargo cut its price target, highlighting the strain on the company’s cash flow as it works to develop new aircraft. The company is also facing a potential major strike, with workers in Washington state set to walk out if a deal isn’t reached later this month.

  American Steel CorporationX): Shares of the steelmaker fell about 4% after Democratic presidential candidate Kamala Harris said the company should remain American-owned and operated in the face of a proposed takeover by Japan’s Nippon Steel. Republican presidential candidate Donald Trump has also opposed the proposed sale.

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

  Unit (and): The video game software developer surged more than 7% 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 market share dominance.

• Tuesday, September 3, 2024 at 9:32 AM EST

  Stocks down in morning trading

  U.S. stocks fell on Tuesday at the start of September, a historically difficult month for markets, as attention turned to a week of labor data headlined by the crucial monthly jobs report.

  The Dow Jones Industrial Average (^DJI) fell about 0.5% following a profitable session booked ahead of the Labor Day holiday. The S&P 500 (^GSPC) fell 0.6% while the tech-heavy Nasdaq Composite (^IXIC) fell 0.8%.