US stocks extended their decline on Wednesday, with technology shares once again leading losses, as concerns over economic weakness and investor fatigue in the artificial intelligence sector intensified.
Analysts caution that market volatility will stay longer as Nvidia’s sharp decline causes concerns about the sustainability of inflated tech valuations.
Nasdaq Composite, which includes top tech firm such as Apple, Microsoft and Nvidia, was down 0.30 per cent at $17,084.30 on Wednesday. While the S&P 500, which tracks large-cap US companies, edged 0.16 per cent lower to $5,520.07. However, the Dow Jones Industrial Average was up almost 0.01 per cent at $40,974.97.
AI chip maker Nvidia, which dropped almost 10 per cent on Tuesday, was trading 1.66 per cent down at $106.21 a share at market close on Wednesday. Apple and Alphabet were down 0.86 per cent and 0.50 per cent, respectively. While Tesla and Meta were up 4.18 per cent and 0.19 per cent, respectively.
The sell-off in AI stocks like Nvidia is not a collapse but a “reality check” as sky-high valuations and rate hikes are forcing a reassessment, said Naeem Aslam, chief investment officer at Zaye Capital Markets.
“This is recalibration, not a rout … tech volatility is the new normal. With the euphoria fading, investors are waking up to a tougher landscape where growth must be earned, not hyped. Brace for more turbulence,” Mr Aslam told The National.
After all the excitement around AI, it's "only natural for the market to take a breather, and factors like inflation and rising interest rates are probably making investors more cautious", Robert Hodgins, founder of Florida-based Sand Hill Road Technologies Fund, told The National.
“We are likely to see more ups and downs in the near future, but the long-term prospects of AI still look strong.”
Investors adopting risk-off mode
Imminent recession fears and potential US Federal Reserve rate cuts are leading investors to stay in a risk-off mode, with further downside likely if the upcoming US jobs data does not ease concerns, industry experts said.
In a risk-off mode, investors adopt a cautious approach and minimise their exposure to riskier assets due to economic uncertainty. Instead, they opt for safer assets such as government bonds or gold.
The US bureau of labour statistics is expected to release job openings and labour turnover survey, known as JOLTS, on Wednesday. It is expected to show that job openings fell to 8.1 million in July, down from June's nearly 8.2 million jobs.
US manufacturing activity also remained slow in August, which further heightened concerns about an economic slowdown.
Only 47.2 per cent of US factories expanded last month, missing the Dow Jones consensus for 47.9 per cent per cent, according to the Institute for Supply Management’s monthly survey of purchasing managers. It remained below the 50 per cent break even point that signals expansion or contraction in activity.
With the euphoria fading, investors are waking up to a tougher landscape where growth must be earned, not hyped
Naeem Aslam,
chief investment officer at Zaye Capital Markets
“Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty,” said Timothy Fiore, chair of the ISM manufacturing business survey committee.
Another US manufacturing purchasing managers’ index reading from S&P Global supported the ISM results, showing a decline to 47.9 in August, down from 49.6 in July.
“The US equities tumbled after the latest ISM data showed a fifth month of contraction in the US manufacturing, and at accelerated pace,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank said in a note on Wednesday.
“The technology stocks led losses … Nvidia tumbled as part of the broader macroeconomic worries and suspected AI fatigue … [and] on news that the DoJ sent subpoenas to the company because it suspects that Nvidia violated antitrust laws, made switching harder to other chipmakers and penalised companies that didn’t use Nvidia’s AI chips exclusively,” she added.
Meanwhile, Asian and European shares also tumbled on Wednesday.
In Asia, Taiwan Semiconductor Manufacturing remained flat while South Korea’s SK Hynix dropped more than 8 per cent and Japan’s Nikkei dipped 4.24 per cent. Hong Kong's Hang Seng index dropped 1.10 per cent, while the Shanghai Composite fell 0.67 per cent.
EURO STOXX 50 futures slumped more than 1.15 per cent, London's FTSE 100 dropped 0.46 per cent, and the Paris CAC 40 slipped 0.92 per cent on Wednesday.
Global market volatility is here to stay, Arun John, chief market analyst at Century Financial, told The National.
“The fading tech euphoria is sparking more frequent market swings, eroding overall confidence and dampening the appetite for leverage and buy-the-dip strategies.
“This market turbulence is likely to persist, especially with the [US] presidential debate on September 10, followed by a Fed meeting just a week later. All eyes are on Friday’s US payrolls report, alongside fresh insights into the performance of the services sector,” Mr John said.
Will a Fed rate cut boost markets?
The Fed has held its benchmark rate steady since July 2023. The Fed may begin cutting interest rates for the first time in four years at its meeting on September 17 and September 18.
“The rate cuts might ease the fall, but they won’t stop the bleeding … expect choppy waters ahead across all markets,” Mr Aslam said.
“Asian markets, especially emerging economies, might see some capital inflows as global liquidity loosens, but they remain vulnerable to export slowdowns and currency volatility. In Europe, rate cuts could offer a breather amid energy crises and sluggish growth, but don't expect a miracle cure,” he added.
Is Nvidia's fall a buying opportunity?
Nvidia shares dropped almost 10 per cent on Tuesday, erasing $278.9 billion in value. This was the biggest single-day loss ever for a US stock, according to data compiled by financial advisory and asset management firm deVere.
However, despite the recent turmoil, Nvidia remains at the forefront of the AI revolution, Nigel Green, deVere’s chief executive, said.
“Nvidia is still up 118 per cent for the year … the market may be reacting to short-term concerns, but Nvidia’s role in the future of AI remains solid. This dip should be viewed as a temporary setback, not a sign of declining relevance.”
Mr Green suggests investors should not write-off the chip manufacturer and should consider it as a buying opportunity.
“Nvidia’s sharp drop offers an attractive entry point into a company … [it’s] fundamentals remain strong, and this correction provides a chance to accumulate shares at a discount.”
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
More from Neighbourhood Watch:
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Brief scores:
Manchester City 2
Gundogan 27', De Bruyne 85'
Crystal Palace 3
Schlupp 33', Townsend 35', Milivojevic 51' (pen)
Man of the Match: Andros Townsend (Crystal Palace)
TICKETS
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
Mohammed bin Zayed Majlis
Match info
Costa Rica 0
Serbia 1
Kolarov (56')
On the menu
First course
▶ Emirati sea bass tartare Yuzu and labneh mayo, avocado, green herbs, fermented tomato water
▶ The Tale of the Oyster Oyster tartare, Bahraini gum berry pickle
Second course
▶ Local mackerel Sourdough crouton, baharat oil, red radish, zaatar mayo
▶ One Flew Over the Cuckoo’s Nest Quail, smoked freekeh, cinnamon cocoa
Third course
▶ Bahraini bouillabaisse Venus clams, local prawns, fishfarm seabream, farro
▶ Lamb 2 ways Braised lamb, crispy lamb chop, bulgur, physalis
Dessert
▶ Lumi Black lemon ice cream, pistachio, pomegranate
▶ Black chocolate bar Dark chocolate, dates, caramel, camel milk ice cream
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
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World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Brief scores:
Day 1
Toss: India, chose to bat
India (1st innings): 215-2 (89 ov)
Agarwal 76, Pujara 68 not out; Cummins 2-40
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Squads
India: Kohli (c), Rahul, Shaw, Agarwal, Pujara, Rahane, Vihari, Pant (wk), Ashwin, Jadeja, Kuldeep, Shami, Umesh, Siraj, Thakur
West Indies: Holder (c), Ambris, Bishoo, Brathwaite, Chase, Dowrich (wk), Gabriel, Hamilton, Hetmyer, Hope, Lewis, Paul, Powell, Roach, Warrican, Joseph
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh359,000
On sale: now
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The British in India: Three Centuries of Ambition and Experience
by David Gilmour
Allen Lane
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
More on Quran memorisation:
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Cinco in numbers
Dh3.7 million
The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
46
The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
3,000
The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
1.1 million
The number of followers that Michael Cinco’s Instagram account has garnered.
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%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rusty%20Cundieff%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJosh%20Hutcherson%2C%20Morgan%20Freeman%2C%20Greg%20Germann%2C%20Lovie%20Simone%0D%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
'THE WORST THING YOU CAN EAT'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
'Gehraiyaan'
Director:Shakun Batra
Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa
Rating: 4/5
Read more about the coronavirus
'HIJRAH%3A%20IN%20THE%20FOOTSTEPS%20OF%20THE%20PROPHET'
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
