No products in the basket.
Thailand’s SET follows US Tech Stocks downturn
Wall Street stocks plunged on Tuesday, led by tech companies. The Dow fell 626.15 points, S&P 500 dropped 2.12%, and Nasdaq declined 3.26%. Chip stocks notably impacted the market amid economic worries.
Wall Street Faces Sharp Decline
The US stock market experienced a significant downturn on September 3, 2024, with major indices like the Dow Jones, S&P 500, and Nasdaq all seeing substantial declines. This sell-off was attributed to a combination of factors, including:
- Struggling Technology Stocks: Tech companies faced difficulties, leading to a sharp decline in their stock prices. Notably, Nvidia, a major player in the semiconductor industry, experienced a record one-day drop, erasing $279 billion in market value.
- Economic Data Concerns: Fresh economic data, particularly weak manufacturing figures, rekindled fears about the health of the US economy and its potential slowdown.
- Renewed Growth Concerns: The release of this data and the overall performance of the technology sector reignited worries about slowing economic growth.
The market downturn on September 3rd marked the worst day for US stocks since an early August sell-off. This event reflects the ongoing concerns about the US economy, the performance of technology companies, and the potential for a slowdown in economic growth
On Tuesday, Wall Street suffered a significant drop as technology companies encountered challenges and new economic indicators raised concerns about the economy. The Dow Jones Industrial Average fell by 626.15 points or 1.51%, closing at 40,936.93. The S&P 500 decreased by 2.12%, finishing at 5,528.93, while the Nasdaq Composite plummeted by 3.26%, ending at 17,136.30. This decline marked the worst performance for these indices since August 5th.
The recent downturn in the US stock market has sent ripples across the global economy, with tech stocks bearing the brunt of investor concerns. The Nasdaq, known for its tech-heavy composition, experienced a significant drop, reflecting broader apprehensions about the sector’s overvaluation and sustainability of growth rates.
This market behavior is not entirely unexpected. Historically, September has been a challenging month for stocks, and the current year has been no exception. The decline was led by Nvidia, a frontrunner in the AI chipmaking industry, which saw its shares plummet by almost 10% following less-than-expected earnings growth. This has sparked a broader sell-off, with other tech giants also witnessing a dip in their stock values.
The economic data has done little to assuage these concerns. Weak manufacturing data has added to the anxiety about the health of the US economy, contributing to the downward trend. The Dow Jones Industrial Average and the S&P 500 both took substantial hits, with declines of 1.51% and 2.12%, respectively.
Analysts suggest that this could be a period of correction, as the tech sector’s high valuations come under scrutiny and investors seek to capitalize on the year-to-date price performances by taking profits. Moreover, the skepticism around the return on investment in AI and other tech ventures is growing, leading to a shift in market dynamics.
The impact of these market movements is not confined to the US alone. Asian markets have also felt the pressure, with Japan’s Nikkei index falling nearly 4%. The global nature of these tech companies means that their performance has far-reaching implications, influencing investor sentiment and market trends worldwide.
As we navigate through this period of uncertainty, it is crucial for investors to remain informed and consider the broader economic indicators that influence market movements. While the tech sector has been a driving force behind market gains in recent years, diversification and a keen eye on economic fundamentals remain key strategies for weathering market volatility.
Thailand’s SET follows US Tech Stocks downturn
The Stock Exchange of Thailand (SET), crucial to the nation’s economy, saw a notable decline, reflecting the downturn in U.S. technology stocks. This trend underscores the vulnerability of emerging markets to the economic shifts of larger economies, especially the United States, home to many of the world’s leading tech firms.
The plunge in US tech stocks was driven by a combination of factors, including weak economic data that raised concerns over a potential economic slowdown. High-profile companies such as Nvidia and AMD saw their shares decline, contributing to the broader market sell-off. The tech-heavy Nasdaq index dropped by 3%, marking one of its most significant one-day falls since 2022.
The SET Index of the Stock Exchange of Thailand (SET) was influenced by international signals. Previously, the index had shown stability, but it experienced a downturn as global challenges in the tech sector diminished investor confidence.
Technology and Manufacturing Struggles
Chip stocks, including Nvidia, which fell by over 9%, pulled the market down. The downward trend continued early Tuesday after reports of a manufacturing slowdown. The Institute for Supply Management reported U.S. factory activity in August below expectations, with the manufacturing index at 47.2%. This was below the Dow Jones estimate of 47.9% and indicated contraction. Additionally, new orders and supplier deliveries declined, although the prices index rose slightly to 54%, signaling increased inflation levels.
Discover more from Thailand Business News
Subscribe to get the latest posts sent to your email.
