US stocks were poised for more losses on Wednesday, coming off a steep sell-off fueled by worries about economic growth and the AI trade amid a slide in Nvidia (NVDA) shares.
S&P 500 futures (ES=F) slid about 0.4%, after the major gauges suffered their worst daysince the Aug. 5 meltdown. Dow Jones Industrial Average futures (YM=F) shed 0.2%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) were roughly 0.8% lower.
Stocks are pulling back as Nvidia shares slump, an indication that faith in the AI boom that has driven much of this year's gains is seeping out of the market. The AI juggernaut lost $279 billion in market value on Tuesday, and its shares are lower in pre-market trading after US regulators reportedly stepped up an antitrust probe.
At the same time, concerns about cracks in the US economy have revived somewhat after a lukewarm reading on factory activity. Investors are keeping a watchful eye on fresh data as they calibrate the likely size of the Federal Reserve interest-rate cut expected within weeks.
The rocky start to September now has investors bracing for more volatility, as a historically tough month for stocks follows a turbulent August. Though markets managed to shake off that month's losses, analysts suggest stocks may not be in the clear yet.
A reading on job openings due later Wednesday will shed light on the labor market and the chances of a "soft landing" for the economy. The print will serve as a lead-in for the highly anticipated August jobs report on Friday, likely to influence the Fed's policy decision making.