On September 3rd local time, the US stock market experienced a "black opening" on the first trading day of September, with the three major indexes collectively falling sharply.
As of the close, the Dow Jones Industrial Average fell 626.15 points, or 1.51%, to 40936.93 points; The Nasdaq fell 577.32 points, a decrease of 3.26%, to 17136.30 points; The S&P 500 index fell 119.47 points, or 2.12%, to 5528.93 points.
Chip stocks suddenly fell sharply
Large tech stocks fell across the board, with Apple falling 2.72%, Amazon falling 1.26%, Netflix falling 3.71%, Google falling 3.68%, Facebook falling 1.83%, and Microsoft falling 1.85%.
Chip stocks collectively fell. Intel fell 8.8%, SMIC fell 8.57%, Micron Technology fell 7.96%, AMD fell 7.82%, Qualcomm fell 6.88%, TSMC fell 6.57%, ASML fell 6.47%, and Broadcom fell 6.14%.
Nvidia plummeted 9.53%, with its market value evaporating by approximately $280 billion (about RMB 2 trillion), creating the largest single day market value loss in the history of individual stocks in the US stock market. The latest report is $108, with a total market value of $2.65 trillion.
Bank stocks generally fell, with JPMorgan Chase down 2%, Goldman Sachs down 4.46%, Citigroup down 1.92%, Morgan Stanley down 4.21%, Bank of America down 0.1%, and Wells Fargo down 0.21%.
Energy stocks collectively fell, with ExxonMobil falling 2.07%, Chevron falling 2.23%, ConocoPhillips falling 3.45%, Schlumberger falling 3.85%, and Western Petroleum falling 2.78%.
Most aviation stocks fell, with Boeing down 7.34%, American Airlines down 0.19%, Delta Air Lines down 0.27%, Southwest Airlines up 2.3%, and United Airlines down 0.39%.
Most popular Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index falling 0.86%. Futu Holdings and NetEase fell more than 3%, iQiyi and Ideal Auto fell more than 2%, Weibo, Baidu, Alibaba, JD.com, and Manbang fell more than 1%, and Tencent Music and Vipshop fell slightly. Xiaopeng Motors rose nearly 4%, NIO rose over 2%, and Pinduoduo and Bilibili rose over 1%.
Economic data warning
The data released by the Institute for Supply Management (ISM) on the same day showed that the August ISM manufacturing PMI in the United States was 47.2, lower than the expected 47.5 and higher than the previous value. Among them, the ISM Manufacturing New Orders Index for the United States in August fell to 44.6, significantly lower than the previous value and the lowest since May 2023.
Analysts say that the overall trend still indicates sluggish manufacturing activity in the United States, triggering market concerns about a recession in the US economy.
The final value of the US S&P Global Manufacturing PMI for August was 47.9, with an expected value of 48.1, an initial value of 48.0, and a final value of 49.6 for July.
In addition, according to analysis by Bank of America Global Research, the sensitivity of futures contracts for the S&P 500 index to US employment reports has exceeded their response to inflation data. Bank of America analysts say that the non farm payroll report has once again become the most important data for the stock market.
International oil prices plummet
International oil prices dropped significantly on Tuesday. As of the close on the 3rd local time, the price of light crude oil futures for October delivery on the New York Mercantile Exchange fell by $3.21, closing at $70.34 per barrel, a decrease of 4.36%; The London Brent crude oil futures price for November delivery fell $3.77 to close at $73.75 per barrel, a decrease of 4.86%.
According to Reuters, US gasoline futures fell nearly 6% on Tuesday, reaching their lowest level since December 2021, as the end of the peak driving season dragged down demand for automotive fuel and the overall oil market experienced a sell-off.
Specifically, the settlement price of gasoline futures for delivery in October fell 5.5% to $1.98 per gallon. Analysts have stated that the energy market generally sold off on Tuesday, with automotive fuel experiencing the largest decline. With the end of the summer driving season in the United States and sufficient inventory, this has put additional pressure on gasoline.
As of August 23, the US gasoline inventory was 218.4 million barrels, 0.5% higher than last year.