Nvidia leads Nasdaq sell-off in brutal start to September
Published On Sep 3, 2024, 4:07 PM
Stocks began September with sharp declines, with the Dow down 1.5% and the S&P 500 dropping 2.1%. Nvidia led the way down for tech stocks, falling nearly 10% after disappointing earnings and concerns over the future of the AI sector. Other semiconductor stocks like Broadcom, Qualcomm, and TSM also fell significantly. Investors are now looking toward an upcoming jobs report that could influence Federal Reserve interest rate decisions. There are concerns of a broader economic slowdown as manufacturing activity indicates contraction, and construction spending declined unexpectedly. The overall sentiment is cautious, with many stocks in the red amid fears of data shocks and presidential election volatility affecting the markets.
Stock Forecasts
NVDA
Negative
Nvidia's recent earnings report did not rally investor confidence, which, along with tech sector weakness and economic concerns, suggests further downward pressure on the stock.
NVDA
Positive
Despite a significant drop in stock price due to current market conditions and investor sentiment, Nvidia still boasts strong year-to-date performance. If upcoming economic data suggests stability, there could be potential for a recovery, albeit gradual.
AVGO
Negative
Broadcom’s stock has dropped alongside Nvidia. If the sector continues to face pressure, expect Broadcom's stock to follow suit in the short term. Investor sentiment seems negative due to external economic factors.
QCOM
Negative
The overall trend in the semiconductor sector indicates continued volatility, especially given the broader economic indicators suggesting a slowdown. Stocks in this sector may face further declines until clearer signs of recovery emerge.
XLP
Negative
With rising interest rate speculation and signs of potential economic slowdown, the construction sector is a risk. Companies in this field may see continued declines if the trends persist.
TSM
Negative
The housing market situation, reflected in construction spending reports, suggests potential dips for companies involved in residential projects, furthering concerns about overall economic health. Investor confidence is likely diminished.
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