US Futures Plunge: Nvidia's Major Losses Impact Market

In a concerning start to September, US futures are extending losses amid a major selloff observed this past Tuesday. The Dow, S&P 500, and NASDAQ are all experiencing downward pressure, with the tech-heavy NASDAQ seeing a drop of approximately half a percent. Central to this market decline is Nvidia, which has emerged as one of the largest laggards, with its stock plummeting more than 9% on Tuesday, a loss that resulted in the unprecedented wipeout of $279 billion from its market capitalization. This fall represents the biggest single-day drop in market cap recorded for a U.S. company. The ramifications of Nvidia's performance are significant not only for the company but for the broader semiconductor industry. Other semiconductor stocks such as TSMC and RCOM are also feeling the pressure as investors continue to react to Nvidia’s downturn. However, some stocks, including AMD and SMCI, are showing signs of resilience and slight recovery within the sector. The overall market sentiment appears cautious, as reflected in the sector performance observed on Tuesday, where Information Technology led the decline with a drop of nearly four and a half percent, alongside other sectors like Energy and Industrials. Only consumer staples and real estate managed to stay in the green, suggesting a risk-off approach among investors. This tumultuous reaction in the tech sector indicates broader concerns regarding inflation and economic recovery, leaving many wondering how long this bearish trend might continue.