Nvidia lost $278.9 billion in market value
Investors returned from the Labor Day weekend to ample labor data. All three major benchmarks started the holiday-shortened week with their worst single-day percentage losses since August, as chip stocks tumbled and economic anxieties resurfaced. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) continued to struggle amid trade deficit and job openings readings, with the 10-year Treasury yield hitting its lowest level since 2023.
The SPX marked a third-straight loss as investors unpacked private payrolls and eyed Friday’s labor report, which showed nonfarm payrolls falling short of expectations, while the unemployment rate was in line with estimates. The three major benchmarks moved lower as pessimism took hold, and were last seen pacing for weekly losses.
Latest in Tech
Technology and artificial intelligence (AI) stocks continued to be a focus this week. C3.ai (AI) geared up for quarterly earnings, while Zscaler (ZS) and PagerDuty (PD) tumbled after their respective reports. The chip sector bounced back despite Nvidia’s (NVDA) antitrust woes and $278.9 billion loss in market value, with Broadcom (AVGO), Micron Technology (MU), and Qualcomm (QCOM) edging higher. For AVGO those tailwinds were only temporary, though, with the stock eyeing its worst week since 2020 after earnings.
Meanwhile, Super Micro Computer (SMCI) attracted not one, but two downgrades. Traders also unpacked quarterly results from both Hewlett Packard Enterprise (HPE) and Schaeffer’s 2024 Top Stock Pick Samsara (IOT), both of which beat expectations.
CPI, PPI Readings Due Out Next Week
Next week features both the consumer price index (CPI) and the producer price index (PPI), two readings that will likely play a role in the future of interest rates. The earnings season is finally cooling off, but reports will still be coming from Dave & Buster’s (PLAY), FedEx (FDX), GameStop (GME), Kroger (KR), and Petco Health & Wellness (WOOF). Before then, take a look at what a heavily shorted market could mean for bears, and dig into how September usually pans out on election years. It’s also worth glancing at the best and worst stocks to own in September.