Nasdaq falls 3.3% as Wall Street sell-off deepens
The Nasdaq has slumped more than three percent as Nvidia and other semiconductor equities retreated ahead of key jobs data later in the week. The tech-focused Nasdaq finished at 17,136, down 3.3 percent in the market's first session in September following Monday's holiday. The Dow Jones fell 1.5 percent to 40,936, while the S&P 500 shed 2.1 percent to 5,528. Stocks spent the entire session in the red, giving back a portion of the gains over the last month. "I think there's just profit taking, kind of rebalancing going on there," said Sam Burns, chief strategist of Mill Street Research. "And now that earnings season is over, there's much less in terms of corporate news to drive things." The Institute for Supply Management's manufacturing index was 47.2 percent in August, up slightly from a month earlier, but still well below the 50-point mark separating expansion from contraction. ISM officials said demand remained subdued, leading to a fifth straight month of contraction. The stock market losses come ahead of major employment data later in the week that will have a say in upcoming US monetary policy decisions. The prior jobs report sparked a brief but dramatic sell-off in US equities, elevating recession fears before subsequent economic reports bolstered confidence. Another weak jobs report would be a "significant headwind," said Art Hogan, chief market strategist at B Riley Wealth. "Then you have two in a row and you start to be concerned about the future of the economy and jobs," Hogan said. Semiconductor shares Nvidia, Advanced Micro Devices and Intel all fell about eight percent or more. Boeing was another big loser, shedding 7.3 percent following a downgrade by Wells Fargo. While most Dow companies fell, Coca-Cola, Visa and Procter & Gamble were among the equities that defied the trend. (AFP)