Asian and US equity markets have taken a sharp hit over the past few weeks as the prospect of the country’s biggest economy slipping into a recession looms. The latest figures showed that instead of any positive growth. US manufacturing activity has flat-lined. Which has since caused investors to turn their eyes to key employment numbers to be released on Friday.
Nvidia Shares Plunge Amid AI Probe
Nvidia, an American multinational technology company and part of the chip manufacturer industry, suffered a severe drop in share value by almost 10%. This happened when optimism over the AI boom started to wane. Julia Lee of FTSE Russell said in a conversation with the BBC: “Concerns about growth carry the day’s market moves.”
Rush Filling Banks See Rapid Declines
The stock market value of Nvidia lost about 9.5% due to its listing on the NASDAQ, which translated into a drop of $279 billion from the company’s market value. Other losses from large technology organizations such as Alphabetical Ideas, apple, and Microsoft were also substantial.
Asian shares extend losses, extend the carnage.
This morning Asian markets followed the trend and also showed a downturn. Japan’s Nikkei 225 shed as much as 4.4%, South Korea’s Kospi fell 3%, while Hong Kong’s Hang Seng index fell 1.3%, and within the trading session, both the Japanese and the South Korean markets returned to the negative territory. Major Asian technology firms like TSMC, Samsung Electronics, SK Hynix, and Tokyo Electron also witnessed sharp falls. Lee said, “Worries about the growth of the global economy are affecting the exporters’ countries of this region the most.”
There is significant anticipation towards the US jobs report.
All eyes are on the US non-farm payrolls report, which will be released on Friday. Investors will get many important aspects out of it. This particular report is of great importance as it could indicate the Fed’s future rate decisions regarding interest rate cuts.
Nvidia Shares Challenges: Stock Value and Market Sentiment
According to Swetha Ramachandran, who manages funds for Artemis Investment Management in London, scepticism over Nvidia shares could be attributed to the US Department of Justice’s order for the company to turn over documents in an anti-trust investigation. She also expressed that Nvidia’s slowdown could be understood as a case of reality catching up with expectations. The company showed a growth level of 122% in the second quarter, while in the third quarter of the same year, it forecasted growth levels of 80%. Ramachandran, however, observed that the general bear market syndrome that has bedevilled most US indexes could also be due to dwindling market dynamics on some prospective Federal Reserve interest rate cuts.
