Get free updates by signing up for the US equities myFT Digest. The digest is sent directly to your inbox. The US stock market faced a broad sell-off led by big tech groups like Nvidia on Tuesday. Weak manufacturing sector data added to investor concerns about an economic slowdown. Technology stocks were hit the hardest, with the Nasdaq Composite falling 3.3% and the Philadelphia Semiconductor index dropping 7.8%. Nvidia, a chipmaker, saw its stock price fall by 9.5%, losing over $250 billion in market capitalization. This drop was further compounded by a report that the US Department of Justice had initiated an antitrust investigation into the company.
The cautious mood also affected Asian markets, with tech and semiconductor companies leading the decline. Japan’s Topix index fell by over 3%, South Korea’s Kospi index dropped nearly 3%, and Taiwan’s TSMC saw a decline of more than 4.6%.
Investors were on edge after the Institute for Supply Management released data showing the manufacturing sector contracting for the fifth consecutive month. The Vix index, known as Wall Street’s fear gauge, rose to its highest level in three weeks, indicating heightened volatility.
The sell-off spread to European markets as well, with the Stoxx 600 index falling by 1% and London’s FTSE 100 dropping by 0.8%. Brent crude and West Texas Intermediate, both oil benchmarks, also saw significant declines amid speculation about a resolution to the political crisis in Libya and weak factory data from China, a major crude importer.
Read More
Janney: Bank stocks beat Treasury yields with dividends