U.S. futures fell after Wall Street began September on a down note. Tech names, including artificial intelligence powerhouse Nvidia (NVDA), saw their stocks fall sharply. Nvidia’s stock price fell further after news that U.S. regulators had subpoenaed the company as part of a deepening investigation into possible antitrust practices. Dr. Fatih Karahan, the Governor of the Central Bank of the Republic of Turkey (CBRT), delivered a keynote presentation at the 24Fintech conference in Riyadh, Saudi Arabia.
1. Futures fell
U.S. stock futures edged lower, signaling a continuation of the previous session's declines on Wall Street.
The Dow contract lost 0.2%, the S&P 500 lost 0.4% and the Nasdaq 100 lost 0.7%.
Major indexes fell in yesterday’s session after a turbulent August, which saw September start on a sour note. September has historically been one of the worst months for stocks, as investors await employment data that is expected to influence the extent of a possible rate cut from the Fed.
The Institute for Supply Management's weaker-than-expected monthly measurement of manufacturing activity also fueled fears of a slowdown in the world's largest economy.
The benchmark S&P 500, the 30-stock Dow Jones Industrial Average and the tech-heavy Nasdaq Composite all posted their biggest daily percentage declines since August. Tech giants, the so-called Magnificent Seven, fell, including artificial intelligence giant Nvidia, which fell almost 10% to a record $279 billion market value.
2. JOLTS data will be announced
Investors will get a look at the state of the U.S. labor market with key employment figures due Wednesday.
According to data from the Job Vacancies and Labor Turnover Survey, which economists consider an indicator of overall labor demand, the number of available positions fell to 8.090 million in July. In June, that number had fallen slightly to 8.184 million.
The survey is a precursor to the highly anticipated nonfarm payrolls report due Friday. The data will likely determine how Fed Chair Jerome Powell approaches the anticipated shift from focusing on controlling inflation to preparing to prevent job losses. Powell said in August that “it is time” to adjust monetary policy because of “potential downside risks” to the U.S. employment picture.
Analysts are almost certain the Fed will cut borrowing costs by 25 basis points at its two-day meeting on Sept. 17-18, according to CME’s closely-tracked FedWatch tool. Interest rates are currently hovering between 5.25% and 5.5%, a 23-year high.
3. Justice Department Subpoenas Nvidia
The U.S. Department of Justice has reportedly issued a subpoena to artificial intelligence giant Nvidia as part of a deepening investigation into possible antitrust practices, according to Bloomberg News.
Nvidia shares fell 2.4% following the report.
Citing people familiar with the matter, Bloomberg said the Justice Department was concerned that Nvidia was making it harder for customers to switch suppliers and was only penalizing those who were not using its AI-optimized processors.
Nvidia said buyers "can choose the solution that works best for them," according to a company spokesperson quoted by Reuters, adding that its recent impressive results showed the business "wins on merit."
The Justice Department launched an investigation into Nvidia's antitrust concerns after receiving complaints from its competitors, The Information reported last month.
4. Nippon Steel promised that {{0|US Steel}} would be run by Americans
Japan's Nippon Steel has announced that if its plan to buy US Steel (USSX34) for $14.9 billion goes through, the majority of the company's core senior management and board members will be Americans.
It will be owned by Nippon Steel North America, the New York-based unit of US Steel, Nippon Steel said, adding that the company has been operating in the Americas for more than half a century.
The comments come after US Democratic presidential candidate Kamala Harris raised concerns about the deal at a campaign event. Harris echoed similar concerns raised by US President Joe Biden, arguing that US Steel "must remain American-owned and American-operated."
5. Crude oil is falling
Crude oil prices fell on growth concerns and expectations that Libyan exports could re-enter the market, adding to the previous session's sell-off.
Brent crude futures fell 1.3% to $72.81 a barrel, while U.S. crude futures (WTI) fell 1.3% to $69.41 a barrel after both contracts fell more than 4% yesterday.
Both contracts fell to their lowest levels since December on signs of a deal to resolve political conflict between rival factions in Libya, cutting production by nearly half and curbing exports.
6. CBRT Governor Karahan's statement on "Digital TL and Tokenization"
Dr. Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), made an important presentation at the 24Fintech conference held in Riyadh, the capital of Saudi Arabia.
A significant portion of Dr. Karahan’s presentation was on the subject of tokenization. Stating that tokenization democratizes access to financial assets, Karahan emphasized that this technology facilitates shared ownership and expands participation in investment opportunities.
Dr. Karahan's presentation also detailed Turkey's Central Bank Digital Currency (CBDC) studies. Providing information about the chronological development and contributions of the Digital Turkish Lira Project, Karahan stated that the project was launched in 2020 and the first pilot trial was carried out in 2023.
