Stocks have moved sharply lower during trading on Tuesday, extending the notable downward move seen over the course of the previous sessions. The major averages have all shown significant moves to the downside, tumbling to their lowest intraday levels in a month. Currently, the major averages are just off their lows of the session. The Dow is down 589. 14 points or 1. 3 percent at 46, 001. 10, the Nasdaq is down 378. 30 points or 1. 7 percent at 22, 329. 78 and the S&P 500 is down 77. 90 points or 1. 2 percent at 6, 594. 51. Weakness among technology stocks continues to weigh on Wall Street amid a continued decline by market leader and AI darling Nvidia CEO Sundar Pichai said there has been some “irrationality” in the current AI boom and warned “no company is going to be immune” if the AI bubble were to burst. Traders are also looking ahead to the release of some U. S. economic data that was delayed by the government shutdown, including the September jobs report on Thursday. On the U. S. economic front, the Commerce Department released a report showing a significant rebound by new orders for U. S. manufactured goods in the month of August. The report said factory orders jumped by 1. 4 percent in August after tumbling by 1. 3 percent in July. The rebound was in line with economist estimates. Sector News Computer hardware stocks are turning in some of the market’s worst performances on the day, with the NYSE Arca Computer Hardware Index plunging by 4. 6 percent. Semiconductor and software stocks are also seeing substantial weakness, contributing to the steep drop by the tech-heavy Nasdaq. Outside of the tech sector, considerable weakness is visible among retail stocks, as reflected by the 1. 8 percent loss being posted by the Dow Jones U. S. Retail Index. Home Depot (HD) has helped lead the retail sector lower, tumbling by 4. 2 percent after reporting weaker than expected third quarter earnings and cutting its full-year earnings guidance. Other Markets In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Tuesday. Japan’s Nikkei 225 Index plunged by 3. 2 percent, while Hong Kong’s Hang Seng Index dove by 1. 7 percent. The major European markets have also shown significant moves to the downside on the day. While the French CAC 40 Index is down by 2. 3 percent, the German DAX Index is down by 2. 0 percent and the U. K.’s FTSE 100 Index is down by 1. 6 percent. In the bond market, treasuries are extending the modest upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3. 3 basis points at 4. 100 percent. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/us-stocks-extending-yesterdays-slump-amid-ongoing-ai-bubble-worries