US Stock Market Futures Dip as Nvidia Faces Regulatory Scrutiny and Economic Data Looms

US futures slip as Nvidia suffers a biggest one-day drop ever By Investing.com

U.S. equity futures indicated a lower opening after the S&P 500 lost more than 2.1% on Tuesday with the Information Technology and Energy sectors leading the downturn. At 18:30 EST (22:30 GMT), the (S&P 500 Futures edged down by 0.1%, and Nasdaq 100 Futures also decreased by 0.1%. Meanwhile, Dow Jones Industrial Average remained unchanged, and CBOE Volatility Index futures saw a slight decline of 0.4%. The equity selloff was fueled by manufacturing data that fueled concerns over the economic outlook. The Dow Jones Industrial Average lost 626.15 points, or 1.51%, closing at 40,936.93. The S&P 500 fell 119.47 points, or 2.12%, ending at 5,528.93, while the Nasdaq Composite declined by 577.33 points, or 3.26%, to 17,136.30. In a historic day, NVIDIA Corporation (NASDAQ:NVDA) stock suffered the biggest one-day drop ever, wiping out $279 billion in market cap. It was reported during after-hours trade that the DOJ sent subpoenas to Nvidia and other companies, in a move that escalates the investigation into the dominant AI computing provider. Nvidia shares fell 1.4% in after-hours trade. The volatility in the market is palpable as investors await the crucial U.S. jobs report due on Friday, which is anticipated to provide insights into the American economy's health and potentially influence the Federal Reserve's pace in adjusting interest rates. Market participants are holding their breath for the upcoming August U.S. jobs report, which is expected to play a key role in the Federal Reserve's decision on whether to implement a rate cut of 25 basis points or 50 on September 18.

Dow Jones Today: Futures Point to Lower Open as Nvidia, Other Tech Stocks Remain Under Pressure

Stephen Wisnefski is the Executive Editor of News at Investopedia. He has more than two decades of experience as a journalist and newsroom leader, including 25 years at Dow Jones and The Wall Street Journal. Stock futures are pointing to a lower open for major indexes on Wednesday, as AI investor favorite Nvidia (NVDA) and other large-cap technology stocks remain under pressure after the previous session's selloff. Futures tied to the S&P 500 and Nasdaq 100 were down 0.3% and 0.7%, respectively, while those linked to the Dow Jones Industrial Average fell 0.1%. The major indexes are coming off their worst day since Aug. 5, as September is starting much the same way as the previous month amid concerns about the health of the U.S. economy and a sharp downturn in chip stocks. Nvidia shares, which fell nearly 10% on Tuesday, were down nearly 2% in recent premarket trading. Adding to concerns about a slowdown in the AI chipmaker's blockbuster growth, the company has reportedly received subpoenas from the Justice Department as part of an antitrust investigation. The VanEck Semiconductor ETF (SMH) was down 1.3% ahead of the bell. Other mega-cap technology stocks were down across the board, with Apple (AAPL), Meta Platforms (META), Amazon (AMZN), Alphabet (GOOGL) and Microsoft (MSFT) all losing ground. Among other notable movers, shares in Zscaler (ZS) were down 16% after the provider of cloud-based cybersecurity services issued an earnings outlook that came in well below Wall Street expectations. On the economic data front, numbers on trade, job openings and factory orders are due Wednesday. On Tuesday, two indicators of manufacturing activity showed continued sluggish activity in the sector, which has been weighed down by high interest rates. The most highly anticipated event of the week comes Friday, with the release of the August jobs report, which investors will be watching closely after a higher-than-expected July unemployment reading sent markets reeling in early August. Market participants are watching economic indicators closely to get a sense of how aggressive the Federal Reserve might be in cutting its benchmark interest rate. Fed Chair Jerome Powell has signaled that rate cuts are coming, possibly as soon as the September meeting of the central bank's policy committee, but has said that incoming data will drive the decisions on the pace and depth of the easing. The yield on 10-year Treasurys, which is sensitive to expectations around interest rates, was down to around 3.82% Wednesday morning, from 3.84% yesterday, at its lowest level in more than a week. Gold futures were slightly lower at around $2,520 per ounce, while bitcoin fell to a four-week low below $57,000.

Futures lower, JOLTS ahead, Nvidia gets subpoena - what's moving markets By Investing.com

Investing.com -- US futures dip following a downbeat day to kick off September for Wall Street. Technology names, in particular artificial intelligence focal point Nvidia (NASDAQ:NVDA), saw their share prices slump sharply. Nvidia's stock price further dropped in after-hours trading following a report that US regulators had issued a subpoena to the company as part of a deepening investigation into possible antitrust practices. 1. Futures lower US stock futures edged lower on Wednesday, suggesting an extension to declines on Wall Street posted in the prior session. By 03:34 ET (07:34 GMT), the Dow futures contract had fallen 80 points or 0.2%, S&P 500 futures had slipped by 23 points or 0.4%, and Nasdaq 100 futures had lost 127 points or 0.7%. The main averages slumped on Tuesday, in a negative start to dealmaking in September following a turbulent August. Historically, September has been one of the worst months for stocks, while traders are eyeing impending job market data that is expected to factor into the magnitude of a potential upcoming Federal Reserve interest rate cut. Sentiment was also dented by weaker-than-expected results from the Institute for Supply Management's monthly measure of US manufacturing activity, stoking fears of a slowdown in the world's largest economy. The benchmark S&P 500, 30-stock Dow Jones Industrial Average, and tech-heavy Nasdaq Composite all recorded their biggest daily percentage fall since August. The so-called Magnificent Seven tech giants dropped, including artificial intelligence-darling Nvidia, which decreased by almost 10% and shed a record $279 billion in market capitalization. 2. JOLTS ahead Investors will have the chance to peek into the state of the US labor market on Wednesday with the release of key job openings figures. The Job Openings and Labor Turnover Survey, which economists consider to be a proxy for broader labor demand, is tipped to show that the number of available roles decreased in July to 8.090 million. In June, the number inched down modestly to 8.184 million. It will serve as a precursor to the publication of the much-anticipated nonfarm payrolls report due out on Friday. The data will likely play into how Fed Chair Jerome Powell approaches an expected shift away from a focus on taming inflation to preparations aimed at guarding against job losses. Powell said in August that the "time has come" to adjust monetary policy due to potential "downside risks" facing the US jobs picture. According to the CME's closely-monitored FedWatch Tool, analysts are all but convinced the Fed will roll out a 25-basis point reduction in borrowing costs at the central bank's upcoming two-day gathering from Sept. 17-18. Interest rates currently stand at a 23-year high of 5.25% to 5.5%. 3. DoJ sends subpoena to Nvidia - Bloomberg News The U.S. Department of Justice has reportedly sent a subpoena to Nvidia as part of a deepening probe into possible antitrust practices at the AI titan, according to Bloomberg News. Shares in Nvidia were down by 2.4% in extended hours trading in the wake of the report. Citing sources familiar with the matter, Bloomberg said the DoJ is worried Nvidia is making it harder for customers to change suppliers and penalizes those who do not exclusively use its AI-optimized processors. According to a spokesperson for the company quoted by Reuters, Nvidia has said its buyers can "choose whatever solution is best for them," adding that its recent blockbuster results demonstrates that the business "wins by merit." The DoJ first launched an investigation in potential competition concerns at Nvidia following complaints from the group's rivals, the Information reported last month. 4. Nippon Steel vows US Steel will be managed by Americans Japan's Nippon Steel has said the core senior management and the majority of board members at US Steel would be Americans if its planned $14.9 billion purchase of the US firm goes ahead. Nippon Steel added that US Steel would be owned by its New York-based unit Nippon Steel North America, noting that the business has been in operation in America for more than half a century. The comments come after US Democratic presidential candidate Kamala Harris flagged concerns over the deal at a campaign event. Harris argued that US Steel "should remain American-owned and American-operated," echoing similar worries voiced by US President Joe Biden. 5. Crude retreats Crude prices slipped lower Wednesday, adding to the previous session's selloff, amid growth concerns and expectations that Libyan exports could reenter the market. By 03:35 ET, the Brent contract dropped 1.3% to $72.81 per barrel, while U.S. crude futures (WTI) traded 1.3% lower at $69.41 a barrel, after both contracts dropped more than 4% on Tuesday. Both contracts fell to their lowest since December on signs of a deal to resolve the political dispute between rival factions in Libya that cut output by about half and curbed exports.