Stocks close sharply lower as chipmakers and energy stocks plunge, led by weak economic data

From Nasdaq: 2024-09-03 18:24:24

Stocks closed sharply lower on Tuesday, with the S&P 500 down -2.12%, the Dow Jones down -1.51%, and the Nasdaq 100 down -3.15%. Chip stocks led the sell-off, while weak economic data and falling oil prices added to the negative sentiment. Concerns about China’s economy also weighed on markets.

Interest rates fell on Tuesday as investors sought safe-haven assets. T-note yields dropped to 3.837%, bouncing back from a recent high. The weaker-than-expected US economic reports contributed to the rally in T-notes. Additionally, supply pressures from corporate debt issuance weighed on bond prices. European government bond yields also moved lower.

Chip stocks like ON Semiconductor, Intel, Nvidia, and KLA Corp, plunged more than -9% on Tuesday. Energy stocks like APA Corp, Devon Energy, and Schlumberger also saw significant declines as crude oil prices hit an 8-month low. However, defensive consumer durable stocks like Molson Coors Beverage and Church & Dwight gained ground. Boeing and US Steel faced notable declines. Earnings reports from companies like Dollar Tree and Hewlett Packard Enterprise are anticipated.



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