ASX 200 LIVE: ASX Set for Decline with Nvidia's Plunge and Wall St Sell-Off

Tuesday, 3 September 2024, 14:23

ASX faces downturn as Nvidia plunges following a Wall Street sell-off. Nvidia's 9.5% drop signals investor concern over weak US and China manufacturing data.
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ASX 200 LIVE: ASX Set for Decline with Nvidia's Plunge and Wall St Sell-Off

Market Overview

ASX is set to experience a significant downturn today as Nvidia's shares plunged by 9.5% in New York, triggering investor concern. This drop followed weak manufacturing data from both the US and China, which investors interpreted as a sell signal.

Nvidia's Impact

Nvidia’s decline resulted in a staggering $US278.9 billion ($415 billion) loss in valuation, marking the largest single-day loss for a US stock. The situation worsened after the US Justice Department issued subpoenas to Nvidia, indicating a possible antitrust investigation.

Market Reactions

  • Brent crude dropped 5%, trading below $US74 a barrel.
  • Iron ore fell by 3.5%, now at $US93.45 a tonne.
  • The Australian dollar lost over 1% in value.

ASX Futures Down

The ASX futures dropped 94 points or 1.2% early in the morning, reflecting the negative sentiment in the markets.

US Market Activity

US stocks were also adversely affected, with BHP’s shares down 5.1% and Rio Tinto down 4.6%. The volatility index (VIX) surged by 33%, suggesting increased market unease.

Sector-Specific News

In Australia, Fortescue, Ramsay Health Care, and Whitehaven Coal will be trading ex-dividend, which could further impact local market dynamics.

Investors Await Jobs Data

All eyes are on the upcoming US jobs data that could heavily influence the Federal Reserve's interest rate decision this month.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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