The U.S. stock market faced a significant downturn today, losing around $1.05 trillion in market value in a single day, marking one of the worst losses in years. The Dow Jones Industrial Average dropped over 700 points, ending down more than 2% at 40,936.93, largely due to weak economic indicators, particularly disappointing manufacturing data from the Institute for Supply Management (ISM), which showed a fifth consecutive month of contraction.
The S&P 500 fell by about 2.4%, closing at 5,530 points, driven by a sharp decline in tech stocks. Notably, Nvidia shares plunged by 9.53%, erasing over $279 billion in market value—the largest single-day drop for any U.S. company. Meanwhile, the Nasdaq Composite experienced the steepest decline, dropping nearly 3.5% to 17,136.30, marking its worst performance since early August.
The decline in oil prices, with U.S. crude falling to $72.66 a barrel, also contributed to market concerns about global demand. Cryptocurrencies like Bitcoin and Ethereum mirrored the tech-heavy Nasdaq's performance, with $BTC falling 2.5% and $ETH dipping below $2,450.
Historically, September is a volatile month for both stocks and crypto, driven by anticipation of economic data and interest rate decisions. While today's market turmoil has sparked concerns, some analysts advise caution, suggesting potential recovery catalysts such as the upcoming U.S. election and a substantial fund distribution to FTX creditors later in the year. However, further declines are possible if upcoming economic data remains weak. Traders should stay alert and consider both short-term volatility and potential recovery opportunities.
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