Nvidia leads Nasdaq down in rough start to September

Given the recent sell-off in Nvidia's stock amid declining investor confidence in tech, especially AI sectors, along with negative sentiment affecting other semiconductor companies, it is likely that these stocks will continue to face downward pressure until clearer signals about economic recovery or robust AI demand emerge.

With the ongoing volatility and negative sentiment in both the tech sector and overall market, ETFs that have a significant allocation to technology and AI stocks may also experience declines. This could lead to further underperformance in the short term as market participants seek defensive plays amid economic uncertainty.

On the flip side, sectors perceived as defensive, such as consumer staples and utilities, may attract more investors looking for stability during turbulent times. Stocks in these sectors could perform better relatively as equity investors rotate away from high-growth areas.