NVIDIA Suffers Historic One-Day Market Value Loss
NVIDIA faced a record-breaking single-day drop in market capitalization, losing 9.5% and erasing $278 billion on Tuesday.
Global markets plunged on concerns about a potential U.S. recession, with the Dow Jones Industrial Average falling 1000 points. The Nasdaq also suffered significant losses, reflecting widespread investor anxiety.
Stocks tumbled on Monday, with the Dow Jones Industrial Average heading for its worst day in nearly two years, driven by concerns over the U.S. economy's health and sparking a global sell-off.
Chicago Federal Reserve Bank Building. Photo by Deactivated Account on Unsplash.
The Dow dropped 1000 points, the Nasdaq Composite lost 3.2%, and the S&P 500 slid 2.7%. Earlier, the Dow had fallen as much as 1,200 points.
Fears of a U.S. recession following Friday’s disappointing July jobs report fueled the market meltdown. Investors are worried that the Federal Reserve is not cutting interest rates quickly enough to combat the economic slowdown, opting instead to maintain the highest rates in two decades. This led to a sell-off.
Other global markets also suffered where Bitcoin dropped from nearly $62,000 on Friday to around $52,000 on Monday. and the Cboe Volatility Index surged to 46, peaking at 65, its highest since early 2020.
Talk of unwinding the yen “carry trade” added to the decline after the Bank of Japan raised interest rates, boosting the yen's value and reducing the interest rate differential with the U.S.
NVIDIA faced a record-breaking single-day drop in market capitalization, losing 9.5% and erasing $278 billion on Tuesday.
US inflation fell to 2.9% in July 2024, its lowest since March 2021, driven by slower increases in shelter, transportation, and apparel costs. Core inflation also eased to 3.2%, with shelter contributing significantly to the monthly CPI rise.
U.S. crude oil production has hit a record 13.4 million barrels per day, solidifying America's position as the world's top oil producer, outpacing Russia and Saudi Arabia.