He Fear returns to the markets after that Wall Street will start the month of September with strong falls, after Monday, the holiday for “Labor Day”. Dow Jones lost 1.5%, the S&P500 2.12% and the Nasdaq 3.26%. The declines were linked to the collapse of Nvidia (it fell 9.5%, wiping out $278.9 billion in the biggest loss of value in history). Added to these declines was the sharp fall of the Asian stock markets this Wednesday.
The Nikkei index fell 4.35%, bringing back the ghosts that appeared in August and raised fears of a recession. Things have gradually calmed down, but volatility in global markets remains.
“September has started badly, to put it mildly. US stocks have plummeted after the latest ISM data showed the US manufacturing sector was in its fifth month of contraction, now at an accelerated pace. This has rekindled fears of recession. before knowing each other “Crucial US employment data this week”wrote Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Technology stocks led losses in the US on Tuesday and have led today Wednesday in Asia. Analysts already anticipated that Volatility was set to continue in Nvidia stocks after publishing, last Wednesday, its results for the second fiscal quarter of 2025 and fell on the stock market due to not meeting the highest expectations. However, many also said they still have faith in the company and there were even rating upgrades, such as that of Bank of America.
“Slowing US growth and weak data are raising recession fears and rate cut expectations. Rate cut expectations are They favour a sector rotation from highly valued large technology companies towards non-tech segments of the market.“Ozkardeskaya explained. “But The expectation of an aggressive rate cut is negative for all stocksregardless of their exposure to technology,” he noted. “Bad news is bad news for everyone”.
The fall in Asian stock markets
Apart from the Nikkei, other Asian stocks also fell on Wednesday. South Korea’s Kospi index lost 3%, as did the Kosdaq, which fell 3.8%.
The chip giants Samsung Electronics and SK Hynixboth suppliers to Nvidia, fell 3.59% and 7.72%, respectively.
The index Taiwan Weighted fell 4.46%, with heavyweights Taiwan Semiconductor Manufacturing Company down 5.21% and Hon Hai Precision Industry, known internationally as Foxconn, falling 3.51%. The index lost as much as 5.29% in early trading before recovering.
The index Hong Kong’s Hang Seng fell 1.2%Chinese chip stocks have also shown weakness despite not being linked to Nvidia’s supply chain, with state-owned Semiconductor Manufacturing International Corporation falling 1.95% and Hua Hong Semiconductor lost 1.06%.
Source: Ambito
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