US Stocks Kick Off September with Sharp Losses
US stocks were firmly lower to start at the start of the month, tracking a decline in global equities amid rekindled concerns of an overvalued tech sector and unsustainable fiscal backdrop. The S&P 500 lost 1.3% and the Nasdaq 100 fell 1.8%, while the Dow retreated 450 points.
Nvidia dropped 3% and AMD fell 3.5% to signal more unease regarding the tech sector, with lingering skepticism around future returns on artificial intelligence technologies driving investors to reconsider their large positions in both software and hardware companies. In the meantime, long-end bonds slumped amid worries of overly expansive fiscal policy endorsed by the White House, exacerbating the steepening in the curve as rate futures showed further certainty of a 25bps rate cut by the Fed this month. Meanwhile, Kraft Heinz was flat after announcing it would split into two companies.(ayu)
Sumber: Trading Economics