US futures slip as Nvidia suffers a biggest one-day drop ever
U.S. equity futures indicated a lower opening after the S&P 500 lost more than 2.1% on Tuesday with the Information Technology and Energy sectors leading the downturn.
At 18:30 EST (22:30 GMT), the S&P 500 Futures edged down by 0.1%, and Nasdaq 100 Futures also decreased by 0.1%. Meanwhile, Dow Jones Industrial Average remained unchanged, and CBOE Volatility Index futures saw a slight decline of 0.4%.
The equity selloff was fueled by manufacturing data that fueled concerns over the economic outlook. The Dow Jones Industrial Average lost 626.15 points, or 1.51%, closing at 40,936.93.
The S&P 500 fell 119.47 points, or 2.12%, ending at 5,528.93, while the Nasdaq Composite declined by 577.33 points, or 3.26%, to 17,136.30.
In a historic day, NVIDIA Corporation (NASDAQ:NVDA) stock suffered the biggest one-day drop ever, wiping out $279 billion in market cap.
It was reported during after-hours trade that the DOJ sent subpoenas to Nvidia and other companies, in a move that escalates the investigation into the dominant AI computing provider. Nvidia shares fell 1.4% in after-hours trade.
The volatility in the market is palpable as investors await the crucial U.S. jobs report due on Friday, which is anticipated to provide insights into the American economy’s health and potentially influence the Federal Reserve’s pace in adjusting interest rates.
In individual stock movements, Zscaler Inc (NASDAQ:ZS) shares dropped by 14% despite suggestions that its outlook might be conservative.
Asana Inc (NYSE:ASAN) stock fell 12% after reporting a challenging quarter and announcing a change in its CFO. Pagerduty Inc (NYSE:PD) also saw its shares decline by 12% after reducing its revenue forecast.
On a positive note, Clover Health Investments Corp (NASDAQ:CLOV) shares surged 20% as its Counterpart Unit secured a contract from the Iowa Clinic, and Gitlab Inc (NASDAQ:GTLB) stock increased by 14% following strong results and an uplifted forecast.
Market participants are holding their breath for the upcoming August U.S. jobs report, which is expected to play a key role in the Federal Reserve’s decision on whether to implement a rate cut of 25 basis points or 50 on September 18.