Stock market today: Dow slides 600 points, Nasdaq sinks 3% as Nvidia leads chip sell-off

Investors still reeling from the sell off in early August were greeted with a flashback of sorts as the first trading day of September pummeled stocks.

The Dow Jones Industrial Average (^DJI) slid 1.5%, or over 600 points. The S&P 500 (^GSPC) dropped 2.1%, while the tech-heavy Nasdaq Composite (^IXIC) pulled back 3.3%.

Wed, September 4, 2024 at 2:30 AM GMT+7

The major indexes were hit hard during the first September session, as the historically rough trading month lived up to its reputation on Tuesday.

As investors waited for a crucial week's worth of economic data that will impact how aggressively the Federal Reserve will cut interest rates, stocks fell during the final hour of trading.

The S&P 500 (^GSPC) is experiencing its worst session since the sell-off in early August rekindled fears of an economic slowdown. Big tech names are driving much of the losses. The AI darling Nvidia is down more than 9%, along with other chip stocks. And tech-heavy Nasdaq Composite (^IXIC) shed 3%.

Wed, September 4, 2024 at 1:45 AM GMT+7

Nvidia (NVDA) stock sank more than 8% Tuesday as the overall market declined on the first trading day of the month.

The AI chip maker was the worst performer among the "Magnificent 7" stocks, falling to its lowest level since mid-August, Yahoo Finance's Ines Ferré reports.

Technology (XLK) stocks led the declines as investors rotated into defensive sectors like Staples (XLP) and Utilities (XLU).

Tuesday's decline comes less than a week after Nvidia posted quarterly resultsthat beat consensus estimates but failed to send the stock price higher.

Up until last week, Nvidia had led the recent rebound in stocks, climbing nearly 25% in a span of three weeks following a global market sell-off.

Despite Tuesday's losses, the stock is up more than 125% year-to-date.

Wed, September 4, 2024 at 1:17 AM GMT+7

After completing a financial restricting following Chapter 11 bankruptcy, the drugstore chain Rite Aid will operate as a private company.

Through the bankruptcy the pharmacy shuttered hundreds of stores, sold off its benefit company and ironed out settlements with its lenders, Reuters reported Tuesday.

The new status of the company comes after Rite Aid filed for bankruptcy in 2023, reporting hundreds of millions of dollars in losses and as it faced a flood of opioid lawsuits related to allegations of ignoring warning signs of suspicions prescriptions.

The bankruptcy will leave the company with a much smaller footprint, down from its 2,000 pharmacies at the time of the filing.

All of the company's common shares were cancelled, the company said, and ownership transferred to some Rite Aid creditors. The company appointed Chief Financial Officer Matt Schroeder as CEO, according to the report.

Moving forward, the company got rid of about $2 billion of total debt and took in roughly $2.5 billion financing.

Wed, September 4, 2024 at 12:19 AM GMT+7

Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Tuesday:

Coinbase (COIN): The digital currency platform sank nearly 7% as a host of crypto-related firms followed much of the rest of the market into the red, as fears of an economic slowdown outweighed the prospects of the Fed's expected rate cut later this month. The price of bitcoin, the main cryptocurrency sank further on Tuesday, around the $57,000 level, dragging the prospects of the digital currency ecosystem along with it.

Boeing (BA): Shares of the plane manufacturer sank 6% Tuesday morning following a price target cut from Wells Fargo, which highlighted pressure on the company's cash flow as it works to develop new aircraft. The company also faces a major potential strike, as its workers in Washington state are set to go on strike if a deal isn't reached later this month.

Nvidia (NVDA): Shares of the AI chip designer fell 7% during afternoon on Tuesday, continuing a slide that accelerated after the company's earnings report last week that failed to impress Wall Street. The stock is down more than 12% over the last five days, highlighting a challenging moment for AI and chip companies that have stalled, as questions about returns on investments from their customers grow louder.

Broadcom (AVGO): Shares of the semiconductor company slid 5% as an array of chip stocks fell in tandem, alongside Nvidia. Qualcomm (QCOM) and Taiwan Semiconductor Manufacturing Company (TSM) were among the losers, shedding close to 6%.

Tue, September 3, 2024 at 11:31 PM GMT+7

US stocks fell on Tuesday to kick off a historically tough month for markets, as AI darling Nvidia (NVDA) and chip stocks led tech stocks down.

The Dow Jones Industrial Average (^DJI) slid 1%, or over 450 points. The S&P 500 (^GSPC) dropped 1.5%, while the tech-heavy Nasdaq Composite (^IXIC) pulled back nearly 2.5%.

Tue, September 3, 2024 at 10:45 PM GMT+7

While the August jobs report coming on Friday is the headline event for scheduled economic news this week, Tuesday offered a glimpse construction activity, with implications for the housing market.

The Commerce Department reported Tuesday that construction spending fell 0.3% in July, compared to no change in the prior month. Forecasts had the spending figures dipping by just 0.1%

The slightly larger than expected drop in spending reflects higher mortgage rates and greater supply.

Weaker demand has led builders to ease up on new construction projects. Single-family homebuilding dropped to a 16-month low in July.

However, mortgage rates continued to fall in August as expectations mount of a rate cut from the Federal Reserve during the upcoming September policy meeting. Rates are expected to slide even more as potential homebuyers wait out for better rates.

Affordability remains an issue, even as borrowing costs are likely to drop.

Fannie Mae’s Home Purchase Sentiment Index, measuring consumer sentiment about the residential housing market, fell in July. That highlights how the lack of affordability is dampening housing activity.

Tue, September 3, 2024 at 10:00 PM GMT+7

With the election just a few short months away and generative AI detection technologies hit-or-miss, experts say we can expect to see more generative AI-based content designed to sow discord among the electorate, reports Yahoo Finance's Dan Howley.

The 2024 elections are the first US presidential elections of the generative AI era, and we’re already seeing examples of the technology being used to impact how Americans cast their ballots.

On Aug. 18, former President Donald Trump shared a series of AI-generated images of Taylor Swift fans wearing pro-Trump shirts, despite the fact that the photos originally appeared in a post marked as satire on X (formerly Twitter). In January, deepfake phone calls went out to some New Hampshire residents, attempting to discourage them from participating in the state’s Democratic primary.

“The danger is that if there is a type of AI disinformation … like the Taylor Swift images … if millions of people are exposed to it and only 10% or 15% do not realize that that's fake, that could be a substantial number for thinking about elections,” explained Augusta University political science professor Lance Hunter.

“[In] swing states, sometimes the margin of victory is less than 1%. So … a small number of people being exposed to this disinformation and not realizing it’s disinformation could be influential for election outcomes,” Hunter added.

Read more here.

Tue, September 3, 2024 at 9:15 PM GMT+7

Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Tuesday:

Boeing (BA): Shares of the plane manufacturer sank 6% Tuesday morning following a price target cut from Wells Fargo, which highlighted pressure on the company's cash flow as it works to develop new aircraft. The company also faces a major potential strike, as its workers in Washington state are set to go on strike if a deal isn't reached later this month.

US Steel (X): The steel producer slipped nearly 4% after Democratic nominee Kamala Harris said the company should stay American-owned and run in the face of a proposed takeover by Japan's Nippon Steel. Republican nominee Donald Trump has also opposed the proposed sale.

Nvidia (NVDA): Shares of the AI chip designer fell 5% during morning trading on Tuesday, continuing a slide that accelerated after the company's earnings report last week that failed to impress Wall Street. The stock is down more than 10% over the last five days, highlighting a challenging moment for AI and chip companies that have stalled, as questions about returns on investments from their customers grow louder.

Unity (U): The video game software developer gained more than 7% Tuesday after analysts at Morgan Stanley upgraded its shares to Overweight from Equal Weight, pointing to the strength of its game engine business and Unity's hold of its market share.

Tue, September 3, 2024 at 8:32 PM GMT+7

US stocks fell on Tuesday to kick off September, a historically tough month for markets as attention turned to a week of labor data highlighted by a crucial monthly jobs report.

The Dow Jones Industrial Average (^DJI) slid roughly 0.5% on the heels of a winning session booked before the Labor Day break. The S&P 500 (^GSPC) dropped 0.6% while the tech-heavy Nasdaq Composite (^IXIC) pulled back 0.8%.