US ⁣Stock Market Falls Amid Economic Concerns and Nvidia’s Decline

Major US stock ⁣index futures prices are falling across ‍the board before the opening of the⁢ New​ York Stock Exchange, with shares of ‌semiconductors and large technology companies, including Nvidia, leading the decline.

As of 8:20 ⁢a.m. ET, E-mini S&P 500 futures on ⁣the Chicago Mercantile Exchange (CME) were ‍down 24.50 points, or 0.44%, at 5,517.25. E-mini Dow futures were⁤ down 80.00 points, or 0.20%, ⁤at 49,380. E-mini Nasdaq 100 futures were down 145.25 points, or 0.76%, at 18,861.25.

Causes of the Decline

The Institute for Supply Management ⁤(ISM) announced that its August manufacturing purchasing managers’ index ⁣(PMI) ​came in at 47.2, falling below 50 for the fifth ‍consecutive month, rekindling concerns ⁢about an economic downturn. This news, combined with Bank of⁣ Japan (BOJ) Governor Kazuo Ueda’s remarks that ⁢the central bank will continue to raise interest rates if the economic and price outlooks turn out as expected, has weighed on investor sentiment.

Employment Indicators

This week, employment-related indicators are released one after another, starting with the Job Openings and⁢ Turnover Report (JOLTs) at 10 a.m. Eastern time. Weekly unemployment‌ claims and the August Automatic Data Processing (ADP) employment report are released on the 5th, and the nonfarm payrolls report ⁣is released⁢ on the 6th.

Investors are particularly ⁤keen on ‌the August employment report, which will be released on the‍ 6th. Economists expect that August’s nonfarm payrolls will ⁤improve compared to ⁣July. However, ⁣if the employment market slows down further despite this⁤ prediction, the financial market is expected to ​increase expectations that the Federal Reserve (Fed) will lower interest rates by⁣ 50bp (1bp = 0.01%​ point) at its meeting on the 17th and 18th.

Nvidia’s Decline

Nvidia’s stock price is down 1.8% in pre-market trading on this day, following a Bloomberg report that the U.S. Department of​ Justice has sent subpoenas to⁢ Nvidia and others to investigate whether they violate antitrust laws. The previous day, Nvidia’s stock price plunged nearly 10%, wiping out $279 billion in market ‍capitalization.

Other Stocks

Dollar Tree (DLTR), a U.S. discount retailer, is seeing its stock price fall⁤ by more than 10% after it lowered its annual sales and net income forecasts. Hormel Foods (HRL), famous for making Skippy peanut butter, is also seeing its stock price fall by more than 10%⁤ in after-hours trading after news that it has lowered its annual sales forecasts. Cybersecurity company Zscaler (ZS) is seeing its stock price plummet 17% after the company confirmed that its fiscal 2025 sales and net profit forecasts ⁤fell short of Wall Street’s expectations.

Market Trends

The US dollar​ is falling slightly, with the dollar index down 0.11% ​at 101.7. Treasury yields are falling ​across the board amid⁤ concerns about an economic⁢ slowdown. The‍ 10-year Treasury yield was 3.821%, down 2.3 basis points from the previous session. The 2-year yield, which is ‍sensitive to policy ​rates, was 3.3 basis points lower at 3.855%.