US stocks fall by $626, weighed down by concerns about economic slowdown and falling Nvidia shares [New York = Hirofumi Takeuchi] On the 3rd, the Dow Jones Industrial Average fell sharply in the US stock market, closing at $40,936, down $626 (1.5%) from the previous week’s close. This was the biggest drop since August 5th, when the Dow Jones Industrial Average fell by more than $1,000. Although the index hit an all-time high last weekend, concerns about an economic slowdown remain, with economic indicators falling short of market expectations. The Dow Jones Industrial Average fell nearly $800 at one point. The S&P 500 index, which is used by many institutional investors, also fell 2.1% from the previous week’s close, and the Nasdaq Composite Index, which has a high proportion of technology stocks, also fell 3.3%. Although not included in the Dow Jones Industrial Average, Nvidia, the largest semiconductor company, fell 9.5%, its biggest drop since mid-April. According to QUICK/FactSet, Nvidia’s market capitalization fell by about $283 billion (about 41.1 trillion yen) from the previous weekend. According to the American investment information magazine Barron’s, this was the largest one-day decline in market capitalization ever recorded for a U.S.-listed stock. Weak economic indicators were the direct cause of the decline in stock indexes. The Institute for Supply Management’s (ISM) manufacturing sentiment index for August was 47.2, slightly below market expectations (47.5) compiled by FactSet, and below the 50 threshold for good or bad economic conditions for the fifth consecutive month. Although that was an improvement from July’s reading of 46.8, “inventory factors accounted for the majority of the increase in the index,” said Thomas Ryan, North American economist at Capital Economics. The new orders index, which reflects strength in demand, worsened. The U.S. manufacturing purchasing managers’ index (PMI, final value) for August released by S&P Global was 47.9, also below market expectations. Concerns about high prices also contributed to stock selling. After a sharp market crash in early August, the Dow Jones Industrial Average hit a new record high again in late August. The S&P 500 was also approaching its mid-July high. Financial markets are certain that the Federal Open Market Committee (FOMC) will begin cutting interest rates at its meeting on September 17-18, and expectations for a soft landing for the U.S. economy have not faded. However, there is a strong desire to identify important indicators in order to gauge stock price trends. The focus will be on August employment statistics, to be released on the 6th. The July deterioration has led to a drop in market sentiment, so the latest results will be the “true test” that will determine the market’s tone, explained Michael Wilson, chief U.S. equity strategist at Morgan Stanley. Private economists’ forecasts are generally that the number of non-farm payrolls will increase by about 160,000 and the unemployment rate will be around 4.2%. Nikkei Newspaper September 4, 2024 5:37 (Updated September 4, 2024 7:02) *Thread title is the headline on the top page of nikkei.com.
Stupid America makes China take it seriously… Export restrictions on essential semiconductor materials will lead to another global semiconductor shortage [271912485] Is this the cause?
America is also a mess, no matter how you look at it, it’s a bubble. They just wrapped up the previous bubble in a new one without even settling the previous one. Well, China is even more miserable though.
I’d like to ask someone who really knows about this, if the US economy worsens, will small and medium-sized local sash manufacturing companies lose work? Will they go bankrupt?
>>30 Well, Warren Buffett also said this: “The more fearful and fearful everyone is, the more circumspect you are. The more circumspect and enthusiastic everyone is, the more cautious you are.”
>>46 Well, in about two months it dropped by nearly 40% from a high of $140 to $90, then rose again by nearly 30% to $120. It’s just as volatile as Bitcoin.
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