Stock market today: US futures retreat as focus turns to labor data
Published On Sep 3, 2024, 7:02 AM
Investors kicked off September on a negative note as major U.S. stock indices suffered significant declines, particularly affecting technology and AI-related stocks like Nvidia. The Dow Jones fell over 600 points, while the S&P 500 and Nasdaq Composite also faced steep drops amid concerns over upcoming economic data, including an influential jobs report. Nvidia's stock tumbled nearly 10% due to disappointing earnings and questions about the future of AI investments. Broader chip stocks, including Broadcom, Qualcomm, and Taiwan Semiconductor, also saw declines. Overall market sentiment indicates a cautious approach, with uncertainty over economic signals and potential rate cuts from the Federal Reserve looming in the background.
Stock Forecasts
NVDA
Negative
Nvidia continues to struggle after a disappointing earnings report, prompting concerns about the AI sector's growth potential and profitability. Ongoing questions about customer ROI in AI investments compound these challenges. This suggests a bearish outlook for Nvidia in the near term.
AVGO
Negative
Broadcom's share performance appears to be affected by Nvidia's struggles and a broader sell-off within the semiconductor sector. Given the overall negative sentiment surrounding tech stocks, it is predicted that Broadcom may also face downward pressure in the upcoming weeks.
QCOM
Negative
Qualcomm's position in the chip market is weakening with overall sector declines. The stock is expected to be negatively impacted as the market continues to grapple with uncertainties in tech investments.
TSM
Negative
Taiwan Semiconductor Manufacturing Company, being a critical player in the semiconductors sector, is likely to experience negative pressures similar to its peers due to the overall sentiment in the technology market and specific issues affecting Nvidia.
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