World Daily News
Business
United States

Nvidia Shares Plunge 9.53%: A Historic $279 Billion Loss Amid Recession Fears

Images from the reference sources
Nvidia shares plummeted 9.53%, resulting in a historic $279 billion loss, as recession fears mount amid disappointing manufacturing data. Discover the implications for the AI sector and investor sentiment.

Nvidia Shares Plunge Amid Economic Concerns

Shares of Nvidia, a leading player in the artificial intelligence sector, experienced a staggering decline of 9.53% on Wall Street, resulting in a market value of $2.65 trillion. This drop, amounting to $279 billion, marks the largest one-day fall in market value for a U.S. company since the inception of Wall Street over 200 years ago. The downturn has raised alarms among investors, reflecting growing concerns that the U.S. economy may be heading towards a recession.

The decline in Nvidia's stock is part of a broader trend, as major companies listed on Wall Street faced collective losses in what has been termed a significant market collapse. The PHLX chip index, which tracks semiconductor stocks, fell by 7.75%, the most substantial drop since 2020. This wave of pessimism follows Nvidia's recent quarterly forecast, which failed to meet the high expectations set by investors who had previously driven the stock's remarkable surge.

Economic Indicators and Investor Sentiment

Adding to the anxiety, recent manufacturing activity data from the United States has been disappointing. The ISM manufacturing Purchasing Managers' Index (PMI) slightly improved to 47.2 in August, up from 46.8 in November 2023, yet it remained below the anticipated 47.5. This marks the 21st contraction in U.S. manufacturing over the past 22 months, indicating a persistent decline in this vital sector.

As a result of the stock's rapid decline, Nvidia's CEO, Jensen Huang, saw his fortune drop by approximately $10 billion, bringing his net worth down to $94.9 billion, marking his largest single-day loss since the Bloomberg Billionaires Index began tracking his wealth in 2016. The combination of Nvidia's stock plunge and the troubling economic indicators suggests that investor confidence is waning, particularly concerning the future of artificial intelligence technology.

  • The recent downturn in Nvidia's stock is not just a standalone event but part of a larger narrative affecting the technology sector. With the U.S. Justice Department intensifying its antitrust investigation into Nvidia, concerns over regulatory scrutiny are also weighing heavily on investor sentiment. As the tech industry faces increasing scrutiny, companies like Nvidia may need to navigate a more complex landscape in the coming months. In addition, the broader economic context cannot be ignored. The potential for a recession raises questions about consumer spending and business investment, both of which are crucial for the tech industry's growth. Investors are likely to keep a close eye on upcoming economic reports and corporate earnings to gauge the health of the economy and the tech sector.
Clam Reports
Refs: | Aljazeera |

Trends

Business

10 Essential Jobs That Will Remain Irreplaceable in the Age of AI

2024-10-03T10:48:27.499Z

Explore the top 10 essential jobs that will remain irreplaceable even as artificial intelligence advances. Discover how human skills in healthcare, education, and creativity ensure job security in the future.

Business

Russia's Car Market Hits New Heights with 150,000 Sales Amid Recycling Fee Surge

2024-10-03T21:08:17.040Z

In September 2024, Russia's car sales surged past 150,000 units for the first time in years, driven by a significant increase in the recycling fee and new Chinese brands entering the market. Experts predict continued growth in the automotive sector as consumer demand rebounds.

Business

Michel Barnier Unveils Tax Strategy Targeting Large Companies and Wealthiest Citizens

2024-10-03T20:08:33.036Z

Prime Minister Michel Barnier outlines a targeted tax increase for 300 large companies to address France's budget deficit, emphasizing that the majority of businesses will not be affected. He also calls for efficiency in public spending and contributions from the wealthiest citizens.

Business

Oil Prices Soar as Biden Discusses Potential Israeli Strikes on Iranian Oil Facilities

2024-10-03T17:30:00.437Z

Oil prices have surged following President Biden's comments on possible Israeli strikes against Iranian oil facilities amid escalating tensions in the Middle East. Analysts warn of significant supply disruptions if conflict intensifies.

Business

EU Approves Tariffs on Chinese Electric Cars Amid Trade Tensions

2024-10-04T09:18:28.933Z

EU countries have approved tariffs of up to 36.3% on Chinese electric cars, citing unfair subsidies from Beijing, while Germany's government faces internal conflict over the decision.

Business

Saudi Arabia's Non-Oil Sector Sees Strong Growth Amid Economic Diversification

2024-10-03T20:18:25.068Z

Saudi Arabia's non-oil private sector has experienced significant growth, reaching its highest level in four months. The Purchasing Managers' Index rose to 56.3 points in September, driven by increased new orders and employment opportunities, highlighting the Kingdom's efforts to diversify its economy away from oil dependency.

Latest