Worries over an economic slowdown appeared to weigh on sentiment as the S&P 500 recorded its worst weekly performance since March 2023 . Tech shares led the declines, driven in part by a drop in NVIDIA following rumors that it may be the subject of a Justice Department antitrust investigation, which led to a roughly USD 300 billion drop in the chip giant’s market capitalization. Energy shares were also especially weak on the back of a decline in oil prices. Conversely, the typically defensive utilities, consumer staples, and real estate sectors held up better. US economic data generally surprised on the downside, raising fears that the Federal Reserve had waited too long to ease monetary policy. On Tuesday, the ISM US manufacturing activity index remained firmly in contraction territory in August, with new orders falling for the third consecutive month. Friday’s official payrolls report from the Labor Department painted a complicated picture of the health of the labor market. Overall, employers added 142,000 jobs in August, below consensus estimates of around 160,000, while July’s gain was revised down to 89,000, marking the lowest level since December 2020. The yield on the 10-year U.S. Treasury note appeared to fall back in response to the jobs report, hitting its lowest level since May 2023. In Europe, the STOXX Europe 600 Index ended 3.52% lower on renewed fears about a deterioration in the outlook for global economic growth. Japan’s stock markets fell over the week, with the Nikkei 225 Index down 5.8%.
Have a great week-end
Charles for the team