Breakfast | US stocks opened in September with a black day: NVIDIA plummeted 9.5%, dragging down chip stocks, and all tech giants collapsed

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Overnight Market Update

US stocks opened black in September, with the largest drop since August 5th. The Dow fell more than 620 points below 41,000 points, the S&P fell more than 2%, the Nasdaq and small-cap indices fell more than 3%, and the VIX panic index rose more than 40%.

The "Tech Seven Sisters" all fell, with NVIDIA leading the chip stocks down.

NVIDIA plummeted by 9.53%, falling to a three-week low, with a market value evaporating by $279 billion, marking the largest single-day market value loss in the history of US stocks, surpassing Meta's record of $251 billion market value loss after the February 2022 financial report. Some analysts believe it is "digesting the troubles of growth," with a bright future ahead, while others say NVIDIA's financial report has raised doubts in the market about the sustainability of massive AI hardware investments.

Tesla rose by 2.7% before turning down by 1.64%, with Tesla China's August shipments increasing year-on-year. Amazon closed down by 1.26%, Google Class A down by 3.68%, Apple down by 2.72%, Microsoft down by 1.85%, and "metaverse" Meta down by 1.83%.

The Philadelphia Semiconductor Index fell by 7.75%; industry ETFs SOXX fell by 7.76%, SMH fell by 7.5%, marking the largest single-day drop since March 2020; NVIDIA's double long ETF fell by 18.98%.

Applied Materials Semiconductor fell by 9.13%, Qualcomm fell by 6.88%, KLA fell by 9.52%, Arm Holdings fell by 6.88%, AMD fell by 7.82%, Broadcom fell by 6.16%. TSMC ADR fell by 6.53%, ASML ADR fell by 6.47%, Intel fell by 8.8%, Micron Technology fell by 7.96%, Applied Materials fell by 7.04%.

NVIDIA's heavy blow followed by more trouble: US Justice Department reportedly issues antitrust investigation subpoenas after the US stock market closes.

After the US stock market closed, Bloomberg cited sources as saying that the US Justice Department has issued subpoenas to NVIDIA and some third-party companies, seeking evidence of NVIDIA's violation of antitrust laws. Antitrust officials are concerned that NVIDIA will make it harder for customers to switch to other artificial intelligence (AI) computing suppliers, and buyers who do not exclusively use its AI chips will be penalized. This news indicates that US regulators are stepping up their investigation into NVIDIA's alleged monopoly in the computing services market.

Apple denies "iPhone 16 does not support WeChat" rumor

What are Tencent and Apple really fighting for? The "Apple tax" has sparked another dispute, with small games becoming the focus. Apple's 30% share will squeeze the survival space of small game companies, while WeChat hopes to protect the rights of small and medium-sized developers and seek a more reasonable revenue sharing ratio.

"XPeng Series" flying car is here, priced at less than 2 million yuan

XPeng Huitian's "Land Aircraft Carrier" aircraft plans to complete its first public manned flight during the Zhuhai Air Show in November this year, make its first public appearance during the Guangzhou Auto Show in November, start pre-sales by the end of 2024, and be priced at less than 2 million yuan.

After a sharp drop in stock price, Intel may be removed from the Dow Jones Industrial Average

This year, Intel's stock price has fallen by nearly 60%, making it the worst-performing stock in the Dow Jones Industrial Average. Intel is also the least influential member in the Dow Jones. If Intel is removed from the Dow Jones, it will further damage its already tarnished reputation and further depress its stock price.

Predict It, a betting market, shows a slight decrease in the implied probability of Trump winning in November

As enthusiasm wanes, the stock price of Trump Media & Technology Group, a social media company under Trump, fell by 9.1% at one point during trading, plummeting 56% from its July high and over 70% from its record high in March. The stock has now fallen for six consecutive days, with 15 out of the past 17 trading days seeing declines.

The U.S. ISM Manufacturing Index for August came in at 47.2, below expectations, showing improvement from July, with employment picking up and prices rising

Within the ISM Manufacturing PMI sub-indices, employment has significantly improved, possibly indicating that Friday's non-farm payroll report will be stronger than expected. Prices paid have started to rise again, with analysts suggesting that this indicates the cooling of commodity inflation may have ended, and we may have already seen the low point in this cycle's Consumer Price Index (CPI). The new orders/inventory ratio has dropped to recessionary levels, with Zerohedge stating that this indicates serious issues in manufacturing, and large-scale layoffs may begin