PARIS (Reuters) – The New York Stock Exchange fell at the open on Wednesday, with a decline in Nvidia weighing on U.S. indices while investors worried about the economic outlook.
In early trading, the Dow Jones index lost 41.37 points, or 0.10%, to 40,895.56 points, and the broader Standard & Poor’s 500 fell 0.33% to 5,510.52 points.
The Nasdaq Composite fell 0.70%, or 119.14 points, to 17,017.158.
The U.S. Justice Department is investigating possible antitrust practices by Nvidia, sending its stock down about 10% on Tuesday, sending tech stocks into safe havens.
Adding to investor concerns, the ISM manufacturing activity indicator came in slightly worse than expected in August, rekindling recession fears.
Investors will, however, be attentive to the next indicators which could contradict the diagnosis made by Tuesday’s data.
The manufacturing sector accounts for just over 10% of U.S. activity, and jobs figures due Friday should provide evidence of the economy’s resilience to the Fed’s rate hikes.
“Recession fears will flare up periodically,” summarize the strategists at Swiss Life Asset Managers.
“The expected slowdown in the US economy has occurred, and we expect the unemployment rate to rise further to 4.3%,” the strategists added.
The JOLT survey on job openings in July, at 14:00 GMT, will liven up discussions during the session.
In terms of values, Nvidia widened its losses and fell by 2.2%.
Advanced Micro Devices rose 2.1% after announcing it was hiring a former Nvidia vice president to lead its artificial intelligence business.
(Written by Corentin Chappron, edited by Kate Entringer)
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