FX.co ★ US Stocks Kick Off September with Sharp Losses

At the beginning of the month, US stock markets experienced a significant downturn, mirroring a global decline in equities. This trend was driven by renewed concerns about an overinflated tech sector and a precarious fiscal environment. The S&P 500 decreased by 1.3%, the Nasdaq 100 dropped by 1.8%, and the Dow Jones Industrial Average fell by 450 points. Notably, Nvidia's shares declined by 3%, while AMD's decreased by 3.5%, reflecting growing uncertainty regarding the tech sector. Investors are increasingly skeptical about the potential returns on investments in artificial intelligence technologies, prompting them to reassess their substantial holdings in both software and hardware firms. Simultaneously, long-term bonds faced a downturn due to apprehensions over the White House's expansive fiscal policies. This added to the steepening of the yield curve, as rate futures indicated increased certainty of a 25 basis point rate cut by the Federal Reserve later this month. In other developments, Kraft Heinz's stock remained stable following its announcement to split into two separate entities.