The Nasdaq fell by 2%. Tesla dropped over 5% before its shareholder meeting. AI-related stocks plummeted, with Palantir falling nearly 8%. Following earnings reports, Super Micro Computer once fell 10%, Pinterest dropped nearly 20%, and AMD fell by 3% during after-hours trading. The offshore yuan depreciated over a hundred points, breaking below 7.13 to reach its lowest level in nearly three weeks. Bitcoin fell below $100,000 during trading for the first time in over four months, while Ethereum dropped over 10%. U.S. crude oil fell nearly 2% during trading. Gold retreated below $4,000, dropping nearly 2% during trading.
U.S. stocks experienced a 'Black Tuesday,' with multiple CEOs of Wall Street giants publicly warning of a potential market correction, directly fueling investor anxiety. The Nasdaq and S&P 500 recorded their largest single-day declines in nearly a month, with technology stocks and high-valuation equities bearing the brunt of the selloff. Six out of the Mag 7 tech giants fell, and the Philadelphia Semiconductor Index plunged by 4%.
Amid suppressed risk sentiment, cryptocurrencies suffered consecutive sharp declines. Bitcoin fell below the $100,000 mark for the first time since June, while Ethereum plummeted by 10%.
The U.S. dollar index extended its rally for a fifth consecutive session, reaching a new three-month high. The pound sterling hit a near seven-month low during trading, while the offshore yuan depreciated over a hundred points, breaching 7.13. Commodities broadly declined. Crude oil halted its three-day winning streak, retreating from a one-week high. Gold fell back below $4,000, with futures gold closing at its lowest level in nearly a month. London copper prices fell for a fourth consecutive session.
The following is the performance of core assets:
Before the U.S. stock market opened, the CEOs of Goldman Sachs and Morgan Stanley jointly issued warnings, stating that U.S. stock valuations were too high and could see a correction of at least 10%. Concerns over high valuations triggered a sell-off in U.S. stocks, with Nasdaq 100 futures and European equities both falling more than 1%. Cryptocurrencies extended their declines, while commodities like gold, silver, and oil also fell in tandem.
In the UK, the Chancellor of the Exchequer's commitment to cutting debt and paving the way for tax increases led to the pound falling to a seven-month low.
During the early trading session of the U.S. stock market, selling pressure intensified sharply, with all three major indexes opening significantly lower. The Nasdaq fell 1.58% at the opening bell. Technology stocks were hit hard, with related ETFs such as semiconductors and global tech stocks falling more than 2%. Investor concerns over Palantir’s high valuation caused it to plummet 8.5% at the open.
During the midday session of the U.S. stock market, news that the U.S. government shutdown was about to break historical records further heightened market uncertainty. The Nasdaq’s decline once expanded to 1.7%. Meanwhile, the cryptocurrency market collapsed, with Bitcoin falling below the 100,000 threshold for the first time since June, recording an intraday loss of over 6.5%, dragging down related concept stocks collectively.
In the final hours of trading, the Nasdaq Composite Index’s decline widened to 2%, while the Philadelphia Semiconductor Index plummeted more than 4%. Chinese stocks listed in the U.S. were not spared, with the Nasdaq Golden Dragon China Index closing down over 2%.
All three major U.S. stock indexes plummeted on Tuesday, with the Nasdaq Composite Index closing down over 2.5% and the semiconductor index falling by 4%. Six out of the Mag 7 declined, while the Philadelphia Semiconductor Index plunged 4%. Metsera surged 20% after Novo-Nordisk A/S raised its acquisition offer for the company.
Benchmark US Equity Indices:
The S&P 500 Index fell 80.42 points, or 1.17%, to close at 6771.55.
The Dow Jones Industrial Average dropped 251.44 points, or 0.53%, to close at 47085.24.
The Nasdaq Composite Index fell 486.087 points, or 2.04%, to close at 23348.637. The Nasdaq 100 Index declined 537.239 points, or 2.07%, to close at 25435.704.
The Russell 2000 Index dropped 1.78% to close at 2340.0325.
The VIX volatility index, also known as the fear gauge, rose 10.83% to close at 19.03.
U.S. Sector ETFs:
The semiconductor ETF fell over 3.6%, leading declines among U.S. sector ETFs alongside the airline industry ETF, while the technology sector of the S&P 500 dropped approximately 2.3%.
Mag 7:
The Wind U.S. Magnificent 7 Tech Stock Index fell by 1.93%.
Apple rose 0.37%.
Microsoft dropped 0.52%, Meta declined 1.63%, Amazon fell 1.84%, Google slipped 2.18%, NVIDIA plunged 3.96%, and Tesla tumbled 5.15%.
Chip Stocks:
The Philadelphia Semiconductor Index closed down 4.01% at 6,979.573 points.
Taiwan Semiconductor's ADR fell 3.53%, while AMD dropped 3.70%.
Chinese Concept Stocks:
The Nasdaq Golden Dragon China Index closed down 2.05% at 8,125.31 points.
Among popular Chinese stocks, WeRide initially closed down 13.7%, Pony AI fell 11.2%, and Xiaomi ADR dropped 4.7%.
Other stocks:
Metsera surged 20% after Novo-Nordisk A/S raised its acquisition offer for the company.
Papa John’s plummeted nearly 10% following reports that Apollo abandoned its attempt to take the company private.
The Eurozone blue-chip index closed down over 0.3%, led by declines of more than 2% in Adidas, BASF SE, and RHM. The German index fell over 0.7%, with a brief rebound in Novo-Nordisk A/S shares providing only fleeting support to the Danish stock market.
Pan-European equities:
The European STOXX 600 Index closed down 0.30% at 570.58 points.
The Eurozone STOXX 50 Index closed down 0.34% at 5,660.20 points.
National indices:
The German DAX 30 Index closed down 0.76% at 23,949.11 points.
The French CAC 40 Index closed down 0.52% at 8,067.53 points.
The UK FTSE 100 Index closed up 0.14% at 9,714.96 points.
Sector and Stock Performance:
The STOXX 600 Telecommunications Sector Index closed down 1.68%.
Among the blue-chip stocks in the Eurozone, Adidas, BASF SE, Rheinmetall AG (RHM), and Schneider Electric fell between 2.71% and 2.09%, leading the declines, while Anheuser-Busch Inbev rose 1.96%, ranking third in performance.
Among all constituents of the European STOXX 600 Index, Telefónica SA closed down 13.12%, Fresenius Medical Care fell 9.85%, Edenred dropped 8.58%, and Auto1 Group Europe Ltd. declined 6.59%.
Editor /rice
