NVIDIA Drops 9.51%·Intel Falls 8.92%
Manufacturing PMI Weakness Rekindles Recession Fears
AI superstar Nvidia's stock price is plummeting nearly 10%. Despite strong earnings last week, the stock failed to meet the market's already high expectations, and concerns about an economic slowdown have reignited due to worsening U.S. manufacturing indicators. Semiconductor stocks are showing a broad decline.
As of 3:36 PM local time on the 3rd, Nvidia was trading at $108.02 per share on the New York Stock Exchange, down 9.51% from the previous trading day.
Other semiconductor stocks are also broadly weak. Intel is plunging 8.92%. AMD is down 7.75%, while Qualcomm and Broadcom are falling 6.84% and 6.19%, respectively.
It is analyzed that the semiconductor stocks plunged sharply as investor sentiment rapidly cooled following the worsening manufacturing indicators released right after the Labor Day holiday.
On the same day, the U.S. Institute for Supply Management (ISM) announced that the August Manufacturing Purchasing Managers' Index (PMI) recorded 47.2. A manufacturing PMI above 50 indicates expansion, while below 50 indicates contraction. This marks the ISM manufacturing PMI below 50 for five consecutive months, suggesting a continued contraction phase in the manufacturing sector.
On the same day, S&P Global also reported that the August manufacturing PMI remained in contraction. S&P Global's August manufacturing PMI recorded 47.9, falling short of both the previous month (49.6) and the forecast (48).
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