Dubai Telegraph - Tech stocks tumble on new Nvidia weakness

The sight of investors running to the hills sparked memories of the brief but tumultuous sell-off at the start of August, which was partly fuelled by a big miss on US jobs creation.

All three leading indexes in New York had ended sharply lower Tuesday, with the tech-heavy Nasdaq hit hard as traders dumped big-name tech firms including Apple, Alphabet and Amazon, while Nvidia shed almost $280 billion of value on fears the surge in artificial intelligence-linked firms may have run too far.

There was no let-up Wednesday as Nvidia lost three percent shortly after the New York open following a Bloomberg report that it has been subpoenaed by US antitrust regulators as part of a probe into its practices.

About 15 minutes into trading, the Nasdaq was down 0.4 percent at 17,075.30.

The broad-based S&P 500 was flat while the Dow Jones Industrial Average edged up 0.2 percent to 41,015.41 points.

Another factor taking sentiment down was data showing that the US trade deficit expanded to $78.8 billion in July, the largest since mid-2022.

Later Wednesday, the US Federal Reserve was to release its "beige book" on economic conditions around the United States.

"When risk reduction takes hold, the most crowded trades tend to bear the brunt, and that's precisely what we saw in Nvidia, which tumbled 9.5 percent as global growth jitters intensified," said independent analyst Stephen Innes.

In Asia, Japan saw a slew of session losers as Advantest plunged 7.7 percent and Tokyo Electron fell more than eight percent, while Sony lost three percent.

TSMC shed more than five percent in Taipei, with SK hynix dumping eight percent in Seoul and Samsung off more than three percent.

Tokyo and Taipei each dived more than four percent overall, while Seoul was 3.2 percent lower.

Elsewhere, oil prices rebounded but then fell back slightly after Tuesday's heavy selling sparked by demand worries linked to a weak Chinese economy and questions over the US outlook, while OPEC's consideration of output hikes added to the pain, analysts said.

Worries about the US economy burst back onto the scene after figures showed a marginal improvement in factory activity in August but it still remained in contraction for a fifth successive month.

The figures come days before a closely watched report on nonfarm payrolls, which could have a big impact on Federal Reserve officials' decision-making going into next week's policy meeting.

The bank is expected to cut interest rates but investors are uncertain how big it will be, with most tipping a reduction of 25 basis points, though a below-forecast reading is seen boosting the chances of a 50-point move.

- Key figures around 1345 GMT -

New York - Dow: UP 0.2 percent at 41,015.41 points

London - FTSE 100: DOWN 0.3 percent at 8,272.53

Paris - CAC 40: DOWN 0.8 percent at 7,512.56

Frankfurt - DAX: DOWN 0.7 percent at 18,617.30

EURO STOXX 50: DOWN 1.4 percent at 4,845.80

Tokyo - Nikkei 225: DOWN 4.2 percent at 37,047.61 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 17,457.34 (close)

Shanghai - Composite: DOWN 0.7 percent at 2,784.28 (close)

Dollar/yen: DOWN at 144.82 yen from 145.46 yen on Tuesday

Euro/dollar: UP at $1.1058 from $1.1047

Pound/dollar: UP at $1.3132 from $1.3111

Euro/pound: UP at 84.21 pence from 84.17 pence

Brent North Sea Crude: DOWN 0.7 percent at $73.22 per barrel

West Texas Intermediate: DOWN 0.7 percent at $69.84 per barrel

A.Padmanabhan--DT