In a brutal day for the U.S. stock market, about $1.05 trillion in market value vanished within 24 hours, marking one of the worst single-day losses in recent years. The Dow Jones Industrial Average opened deep in the red, plunging over 626 points at the start and continuing to slide, closing the day with a 2% drop to 40,936.93. The steep losses were largely triggered by disappointing economic data, particularly in the manufacturing sector.
The Institute for Supply Management (ISM) reported its fifth consecutive month of contraction, sparking investor panic and a broad sell-off amid concerns of deeper economic trouble.
The S&P 500 also suffered, falling 2.4% to end around 5,530 points. The hit came mostly from the tech sector, with Nvidia experiencing a staggering 9.5% drop—the largest single-day loss for any U.S. company—wiping out $279 billion in market value. The energy sector struggled as well, with oil prices slipping. U.S. crude dropped to $72.66 per barrel, reflecting concerns about global demand.
Meanwhile, the Nasdaq Composite was the hardest hit of the major indices, falling nearly 3.5% to 17,136.30—its worst day since August 5th. Tech-heavy stocks and cryptocurrencies mirrored the decline, with Bitcoin falling by 3% and Ethereum dipping below the $2,500 mark. However, analysts believe these crypto moves were influenced more by September's usual volatility than by direct stock market factors.
Despite the current turbulence, some experts are suggesting potential catalysts for recovery, including the upcoming U.S. election and the anticipated distribution of $14.5 billion to FTX creditors later this year. While some analysts are advising calm, others warn of further challenges ahead if future economic data doesn’t show improvement.