Market Recap: Stocks Plummet in Biggest Drop Since August, Oil Prices Decline

(Bloomberg) — Asian stocks experienced a significant decline, the largest since the market turmoil on‌ August 5th, following the ‌downward trend in the US market triggered by Nvidia Corp’s sharp‌ drop.

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Asian semiconductor companies⁢ saw their ‍shares plummet due to renewed worries about the hype surrounding artificial intelligence, causing a regional‌ stock index to ⁢drop ‍by⁤ over 2%. Major ‌chipmakers⁢ like Taiwan Semiconductor Manufacturing Co. and SK Hynix Inc. both saw their‍ stocks fall by at least ⁢4%. US futures also⁢ took a hit during Asian ⁢trading after the S&P 500 lost over 2%.

This overall risk-averse sentiment emerged as a ‍key⁤ US manufacturing indicator once again failed ‌to meet‍ expectations, leading investors to‍ consider the ‌possibility ⁤of an economic slowdown⁤ in the world’s largest economy. This added to the existing negative sentiment‌ in Asia,‌ where disappointing Chinese economic‌ data had ‌been impacting risk assets.

“The significant market movement on August 5th likely left a‍ lasting⁤ impact on many investors, and it’s challenging to⁣ move past those memories, especially with the uncertainty between⁤ a hard landing and a soft landing still unresolved,” said Charu…

2024-09-03 21:54:14
Article from finance.yahoo.com