Nasdaq posts worst sell-offs since August 5

Tuesday’s stock market decline was caused by struggling technology companies and fresh economic data that stoked concerns about the state of the economy.
the Dow Jones Industrial Average finished at 40,936.93 index points, down 1.51%. S&P 500 closed at 5,528.93 index points, down 2.12%.

The Nasdaq Composite saw its worst day since the worldwide sell-off on August 5, falling 3.26% to close at 17,136.3 index points.

Nvidia, the dazzling artificial intelligence stock that has attracted investor attention for over a year, plunged more than 9%, and stocks saw downward pressure. It was one of several semiconductor stocks that fell throughout the session, along with Micron and Advanced Micro Devices.

The VanEck Semiconductor ETF saw a decline of more than 7%. It was the worst day for the IT sector since September 2022. Tuesday morning’s market dip came when two manufacturing production readings indicated weakness.

While the Institute for Supply Management came in below the level predicted by Dow Jones economists polled, S&P Global’s posted a decline from July to August. This data contributed to a much-watched sell-off early last month by rekindling worries about the U.S. economy’s slowing growth.

The three major averages concluded August with gains, and Tuesday’s changes mark the beginning of the new trading month. Due to Labor Day, U.S. markets were closed on Monday. The upward trend in stocks through September wasn’t much anticipated.

Early in August, fears of a U.S. recession combined with the collapse of a well-known hedge fund transaction involving the Japanese yen caused equities to plummet. Before it recovered, the S&P 500 had down more than 7% throughout the month.