①Nvidia's market cap plunged by approximately 1.99 trillion yuan; ②The Philadelphia Semiconductor Index fell by 7.7%, and all constituent stocks were hit hard; ③Large-cap tech stocks collectively declined, with Apple dropping by 2.72%; ④Berkshire Hathaway's stock price continued to hit new highs.
On September 3, the U.S. stock market opened low and closed lower, with all three major indices falling.
At the close, the Dow Jones Industrial Average fell by 1.51% to 40,936.93 points; the S&P 500 Index fell by 2.12% to 5,528.93 points; and the Nasdaq Composite Index fell by 3.26% to 17,136.30 points, marking the largest single-day decline since 'Black Monday' on August 5.
Meanwhile, the VIX (CBOE Volatility S&P 500 Index), also known as the 'fear index', closed at 20.72, reaching as high as 21.99 during the trading session. Prior to this, the index had not breached the 20 level since August 14.
Out of the 11 sectors in the S&P 500 Index, only 2 closed higher, with the information technology sector plummeting by 4.43% as the biggest loser. The Philadelphia Semiconductor Index fell by 7.75%, and all 30 constituent stocks were hit hard, with declines ranging from 4.3% to 10.6%.
S&P 500 Index heatmap.
In early trading, two sets of manufacturing indicators released by the United States simultaneously showed that U.S. factories were still in a slowdown mode in August, exacerbating concerns about the direction of the economy. The Institute for Supply Management (ISM) recorded a manufacturing PMI of 47.2, while the global PMI by S&P was 47.9.
Both of these data points were below the 50 threshold, indicating that economic activity in the respective sectors was in a contractionary state. Larry Tentarelli, Chief Technical Strategist at Blue Chip Trend Report, stated that the market currently seems to be highly sensitive to any data.
This Friday, the US Department of Labor will release the Employment Situation Report. Brian Mulberry, portfolio manager at Zacks Investment Management, said, 'Can we really achieve a soft landing? Or will we get a non-farm report with a sharp increase in the unemployment rate?'
Popular stocks performance
Large-cap tech stocks collectively fell, with Nvidia dropping 9.53%. Based on calculations, Nvidia's market cap 'evaporated' by $278.9 billion (approximately CNY 1.99 trillion), setting a new record for the US stock market. Shortly before the publication of this article, there was news that Nvidia had received a subpoena from the US Department of Justice.
Other tech giants also performed poorly, with Apple down 2.72%, Microsoft down 1.85%, Google down 3.94%, Amazon down 1.26%, Meta Platforms down 1.83%, and Tesla down 1.64% (in terms of market cap ranking).
Berkshire Hathaway defied the market trend and reached new all-time highs for both Class A and Class B shares, with cumulative gains of over 30% since the beginning of the year. Last week, the company's market cap surpassed $1 trillion for the first time, making it the seventh US-listed company with a market cap exceeding $1 trillion.
Semiconductor stocks collectively plummeted, with components of the Philadelphia Semiconductor Index, such as Synaptics and Monolithic Power Systems, falling by more than 10%. Among the large-cap stocks, Taiwan Semiconductor dropped 6.53%, Broadcom dropped 6.16%, ASML Holding dropped 6.47%, and AMD dropped 7.82%.
As for China concept stocks, the NASDAQ Golden Dragon China Index fell 0.86% to 5,560.04 points.
Most popular China concept stocks declined, with Netease down 3.03%, Li Auto Inc down 2.36%, New Oriental down 1.74%, Baidu down 1.43%, Alibaba down 1.28%, JD.com down 1.11%, Tencent Music down 0.86%, and TAL Education down 0.50%.
Miniso rose by 4.20%, Nio Inc rose by 2.72%, PDD Holdings rose by 1.71%, Bilibili rose by 1.60%.
Company news
Zscaler's adjusted earnings per share for the fourth quarter exceeded expectations.
Cloud security company Zscaler's adjusted earnings per share for the fourth quarter were $0.88, exceeding analysts' expectations of $0.70; fourth quarter revenue was $0.5929 billion, exceeding analysts' expectations of $0.5685 billion; projected revenue for 2025 is $2.6 billion - $2.62 billion, compared to analysts' expectations of $2.63 billion; projected first quarter revenue is $0.604 billion - $0.606 billion, compared to analysts' expectations of $0.6048 billion.
Bernstein significantly raised Ferrari's target price.
Despite Ferrari's strong rebound so far this year, Bernstein has upgraded it to a 'shareholding' rating and raised its target price from $488 to $599, suggesting it has over 20% upside. Last week, Morgan Stanley raised Ferrari's target price to $520. Analyst Adam Jonas believes that Ferrari has a higher PE ratio, has very low exposure in the Chinese market, and has extremely high brand loyalty, standing out among luxury car peers.